Economics
How incentives, scarcity and trade-offs shape behaviour and outcomes.
Mental model
Compounding
Small gains that build on themselves grow slowly, then astonishingly fast.
How to thinkHow to Think About Incentives
To predict behaviour, look at what people are rewarded for — not what they say.
Cognitive biasLoss Aversion
A loss hurts about twice as much as an equivalent gain feels good.
Mental modelOpportunity Cost
The true cost of any choice is the best alternative you gave up to make it.
Cognitive biasSunk-Cost Fallacy
Continuing something because of what you've already spent, not what it's now worth.