Mental Model: Liking

Mental Model: Liking

The way we perceive and interact with people is often influenced by subconscious biases, and one of the most powerful among them is the Liking. This psychological principle suggests that we are more likely to agree with, trust, and be influenced by people we like, often without objectively evaluating their arguments or intentions. While liking…

Mental Model: Lollapalooza Effect

Mental Model: Lollapalooza Effect

The human mind is a complex mechanism, prone to errors and distortions due to inherent cognitive biases. One of the most fascinating psychological concepts that explain how multiple biases interact and amplify one another is the Lollapalooza Effect. Coined by legendary investor Charlie Munger, this term describes a scenario where multiple psychological tendencies act in…

Mental Model: Commitment & Consistency Bias

Mental Model: Commitment & Consistency Bias

Humans like to see themselves as rational beings who make logical decisions based on facts and reasoning. However, psychology tells us otherwise. Our decisions are often influenced by cognitive biases—mental shortcuts that can sometimes lead us astray. One of the most powerful biases affecting human behavior is the Commitment & Consistency Bias. This bias explains…

Mental Model: Anchoring

Mental Model: Anchoring

Ever walked through the bustling lanes of Sarojini Nagar in Delhi or Colaba Causeway in Mumbai, trying to strike a bargain? You see a stunning leather bag, and the shopkeeper says, “Madam, bas ₹5,000!” You scoff, shake your head, and after a dramatic negotiation, you walk away with it for ₹2,500—thinking you’ve bagged a steal….