Mental models are frameworks or concepts that help us understand and interpret the world. They shape how we think, make decisions, and solve problems. By collecting and applying a variety of mental models, we can improve our reasoning and avoid cognitive biases.
Why Mental Models Matter
- They simplify complex reality
- Help in decision-making
- Aid in problem-solving
- Prevent common thinking errors
Charlie Munger is famous for advocating the use of a broad set of mental models to achieve better outcomes in life and business. See 7.1a Charlie Munger.
Examples of Mental Models
- 7.1l First Principles Thinking
- 7.1u Second-Order Thinking
- 7.1c Inversion
- 7.1d Circle of Competence
- 7.1q Opportunity Cost
- 7.1i Confirmation Bias
- 7.1p Occam’s Razor
- 7.1r Probabilistic Thinking