From [James Clear](https://jamesclear.com/mental-models): ## Mental Models in Business ### Economics - Common Knowledge - Comparative Advantage - Diversification - Economies of Scale - [[Efficient Markets Hypothesis]] - Game Theory - Incentives (Reward and Punishment) - Scarcity - Supply and Demand ### Psychology - Anchoring - Classic Conditioning (Pavlov) - Commitment and Consistency Bias - Hyperbolic Discounting - Illusion of Control - Loss Aversion - Maslow's Hierarchy of Needs - Mere Exposure Effect - Operant Conditioning (Skinner) - Reciprocity - Status Quo Bias - Survivorship Bias - Tribalism ### Thinking - The Scientific Method - Inversion - Surfing or "Riding the Wave" - Working Backward ## Mental Models in Science ### Biology - Evolution by Natural Selection - Equilibrium (Homeostasis) - Heredity - Signalling ### Chemistry - Activation Energy - Atomic Theory - Autocatalysis - [[Entropy]] (The Second Law of Thermodynamics) - Catalysts ### Physics - Critical Mass - Relativity - Velocity - [[Physics Envy]] ## Mental Models in Math and Engineering ### Engineering - Break Points - Leverage - Margin of Safety - Redundancy ### Mathematics - Normal Distribution (Bell Curve) - Permutations and Combinations - Power Laws Explore Further: [FS Blog](https://fs.blog/mental-models/) | [[Decision Making]] Tags: Your support for Cedars Hill Group is greatly appreciated <form action="https://www.paypal.com/donate" method="post" target="_top"> <input type="hidden" name="hosted_button_id" value="74PGN8ZXHQVHS" /> <input type="image" src="https://www.paypalobjects.com/en_US/i/btn/btn_donate_LG.gif" border="0" name="submit" title="PayPal - The safer, easier way to pay online!" alt="Donate with PayPal button" /> <img alt="" border="0" src="https://www.paypal.com/en_US/i/scr/pixel.gif" width="1" height="1" /> </form>