Unlock the power of your mind with mental models. Discover how these cognitive tools can enhance your thinking, decision-making, and problem-solving abilities. Gain a mental edge and navigate life's complexities with greater ease and confidence.
Definition of Mental Models
An explanation of how something works
- Help you understand life
- Guide your perception and behavior
- No theory is 100% correct, but no theory is completely useless
- The best mental models are the ideas with the most utility
- They are broadly useful in daily life
The Big Mental Models
Of all the mental models humankind has generated throughout history, there are just a few dozen that you need to master to have a firm grasp of how the world works.
- After many hours of research, I have sorted through more than 1,000 mental models and distilled them into a short list of the most important mental models for daily life.
Mental Models in Business Economics
Common Knowledge
- Comparative Advantage
- Economies of Scale
- Efficient Market Hypothesis
- Incentives
- Scarcity
- Supply and Demand
- Anchoring
- Commitment and Consistency
- Hyperbolic Discounting
- Illusion of Control Loss
- Aversion
- Maslow’s Hierarchy of Needs
- Operant Conditioning (Skinner)
- Reciprocity
- Status Quo Bias
- Survivorship
- Tribalism
- Thinking
- The Scientific Method Inversion
