User:Tjal777/Mental models

Tilt
- ​A frustrated, confused state of mind caused by the emotional stress of losing. Happens a lot in strategic games that have an element of luck, like poker. Tilting is best thought of as a degradation of your skill level, so tilting less allows you to beat people that are actually better than you, because you're playing at your skill cap more often than they are.

Read the full article﻿﻿ ﻿﻿about Tilt﻿.

Do / Say Something Syndrome
​We often confuse activity for results. Sometimes, the best thing to do or say in the face of a problem, question, or situation, is nothing at all.

Read ﻿the full article about Do / Say Something Syndrome.

Availability Heuristic

​Ease of Recall Retrievability

Representativeness Heuristic

​Insensitivity to base rates Insensitivity to sample size Misconceptions of chance Regression to the mean Bias from conjunction fallacy

Pareto Principle
​Most things in life (effort, reward, output) are not distributed evenly. You take take advantage of this by isolating the inputs that lead to most of the output in any area. However, this is easy to over-apply.

Read the full article about the Pareto Principle.​

• Common Knowledge • Comparative Advantage • Diversification • Economies of Scale • Efficient Market Hypothesis • Game Theory • Incentives (Reward and Punishment) • Scarcity • Supply and Demand

​Natural Selection
Other Mental Models

​Information Asymmetry - A situation where one one party has more information than the other. They can also have the same amount, but higher quality. Either case gives the party with more / better information a huge advantage. Shows up a lot in investing and games like poker.

Read the full article about Information Asymmetry.

​Hanlon's Razor - We often attribute the actions of others to malice when other reasons (incompetence, ignorance, errors) are more likely.

Read the full article on Hanlon's Razor.

​Satisficing - We often waste a lot of time trying to maximize unimportant decisions. Instead, we should seek an outcome that is "good enough", choose it, and move on with our lives.

Read the full article on Satisficing.

Coming Soon:

Occam’s Razor Deduction and Induction Basic Decision Making Process Scientific Method Process versus Outcome And then what? The Agency Problem 7 Deadly Sins Network Effect Gresham’s Law The Red Queen Effect