Economics

How incentives, scarcity and trade-offs shape behaviour and outcomes.

Mental model

Small gains that build on themselves grow slowly, then astonishingly fast.

To predict behaviour, look at what people are rewarded for — not what they say.

A loss hurts about twice as much as an equivalent gain feels good.

The true cost of any choice is the best alternative you gave up to make it.

Continuing something because of what you've already spent, not what it's now worth.

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