Introduction In the realm of decision-making, our minds are susceptible to various cognitive biases and fallacies that can lead us astray from logical reasoning. One such phenomenon is the Decapitation mental model, which refers to the tendency of individuals or groups to make irrational decisions by focusing solely on the removal of a single influential […]
Introduction Goodhart’s Law, a concept coined by economist Charles Goodhart, highlights the pitfalls of using quantitative metrics as proxies for complex systems. This mental model suggests that once a measure becomes a target, it loses its effectiveness, leading to distorted decision-making outcomes. Understanding Goodhart’s Law is crucial for navigating decision-making processes, as it sheds light […]
Introduction In the realm of decision-making, we often fail to consider the full impact of our choices on others and the environment. This is where the mental model of externality comes into play. Externality refers to the unintended consequences of an action that affect individuals or entities who are not directly involved in the decision-making […]
Introduction In the realm of decision-making, cognitive biases often cloud our judgment and lead us astray. One such cognitive trap is Campbell’s Law, a mental model that highlights how the pursuit of quantifiable metrics can distort decision-making processes. Coined by social psychologist Donald T. Campbell, this law suggests that when a measure becomes a target, […]
Introduction Braess’s Paradox is a mental model that challenges our intuition about decision making by demonstrating that adding more resources or options can lead to worse outcomes. This counterintuitive phenomenon has implications in various domains, from personal life decisions to business strategies and public policy-making. Understanding the psychological underpinnings and prevalence of Braess’s Paradox can […]
Introduction In the realm of decision-making, the Cobra Effect stands as a cautionary tale—a mental model that reminds us of the perils of unintended consequences. Coined after a historical anecdote from British colonial India, the Cobra Effect refers to a situation in which an attempted solution to a problem only exacerbates it. This concept sheds […]