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Mental Models

Mental Models

The timeless thinking tools that sharpen judgement across every domain — each explained with how to apply it, a worked example, and pitfalls. This library grows every week.

18 models
Cognitive bias
Availability Heuristic

We judge likelihood by how easily examples come to mind, not by actual frequency.

Probability
Base Rates

Start from how often something happens in general before judging the specific case.

General thinking
Circle of Competence

Know the boundary of what you truly understand — and stay inside it.

Economics
Comparative Advantage

Specialise in what you give up the least to do, and trade for the rest.

Economics
Compounding

Small gains, repeated and building on themselves, become extraordinary over time.

Cognitive bias
Confirmation Bias

We seek and favour evidence that confirms what we already believe.

Economics
Diminishing Returns

Beyond a point, each additional unit of effort yields less and less benefit.

Human nature
Hanlon's Razor

Never attribute to malice what is adequately explained by carelessness.

Human nature
Incentives

Show me the incentive and I'll show you the outcome — people respond to rewards.

Cognitive bias
Loss Aversion

Losses hurt about twice as much as equivalent gains feel good.

General thinking
Margin of Safety

Leave room for error, because your estimate will sometimes be wrong.

General thinking
Occam's Razor

Among competing explanations, prefer the simplest that fits the facts.

Economics
Opportunity Cost

The true cost of anything is what you give up to get it.

General thinking
Pareto Principle (80/20)

Roughly 80% of results come from 20% of causes — find and focus on the vital few.

Probability
Regression to the Mean

Extreme outcomes tend to be followed by more average ones.

Cognitive bias
Sunk Cost Fallacy

Don't throw good money after bad — past investment shouldn't dictate future choices.

Economics
Supply and Demand

Price is set where what sellers will supply meets what buyers will demand.

General thinking
The Map Is Not the Territory

Every model is a simplification of reality — never mistake it for the real thing.