Mental Model: The Micawber Principle In Charles Dickens’s novel, David Copperfield, published in 1850, the eternal optimist Wilkins Micawber was known for saying “something will turn up”. He was poor but lived in expectation of becoming rich, sometimes foolishly taking on debts due to the belief. We have Micawber to thank for one of the…
Mental Model: Gaslighting One of the big themes that I perpetually hit upon is that you, as a rational, responsible adult, should not outsource your thinking. When it comes to what matters in life, you must rely on your own judgment and analysis of the facts. In the words of Benjamin Graham, “You are neither…
Mental Model: Horns Effect and Halo Effect One of the most powerful, and potentially harmful, mental models you will encounter in your life is known as the horns effect and halo effect. It can cloud your judgment, and because it is closely related to the mere association mental model, has the power to cause you…
Mental Model: The Hundredth Monkey Effect In social evolution, there is a mental model that describes the moment that knowledge, behavior, or belief reaches a tipping point (when the “100th monkey” is added), and instantaneously spreads throughout society so that it reaches the rest of a population without being taught, becoming common. The original research…
Mental Model: The Thief Among Us One of the things that has perplexed me for a long time is Charlie Munger’s insistence that a significant minority of humanity is wired in such a way that they will steal if given the opportunity, regardless of whether or not they need the resources they are taking…
There is a quick test that can help you determine if you rely on intuition or reflective reasoning (intellect) when making decision. Answer the following question as quickly as possible: “A bat and a ball cost $1.10 in total. The bat costs $1 more than the ball. How much does the ball cost?” Do you…
This clip has gone viral over the Internet, generating nearly 700,000 views since it was posted. It shows what it would feel like to fly over Earth if you had a spaceship. Watch of for the lightning and thunderstorms. We live on a beautiful planet. The original poster of the video had this to say:…
Wendy’s recent commercial introducing the remade cheeseburger named after founder Dave Thomas is one of the best examples of marketing and psychology I’ve ever seen. It’s brilliant; mental models applied in a constructive way. I’m not going to take the fun out of it, but be on the lookout for some of the clues…
Mental Model: Calibration Errors Calibration errors are when people lack the genetic or cultural ability to calibrate communication based upon the situation, people involved, or other contextual clues. To understand calibration errors as a mental model, it might help to give you three real-world scenarios that would require the observer to calibrate the hyperbole. A…
How much genetic material do you share with your biological relatives? Take a look at the family tree below and the figure in the red box is the percentage of genes your body has in common with your blood relatives.
