{"id":54400,"date":"2021-11-07T12:50:00","date_gmt":"2021-11-07T16:50:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=54400"},"modified":"2021-11-17T10:38:05","modified_gmt":"2021-11-17T14:38:05","slug":"types-of-mental-models","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/types-of-mental-models\/","title":{"rendered":"50 Types of Mental Models for Better Decision-Making"},"content":{"rendered":"\n<p>What are the major types of <a href=\"https:\/\/www.shortform.com\/blog\/increase-focus\/\">mental models<\/a>? What should be your focus when learning a mental model?<\/p>\n\n\n\n<p>The many types of mental models cut across several disciplines including math, psychology, economics, physics, and more. They include models like Gaussian distribution, reciprocity, autocatalysis, and <a href=\"https:\/\/www.shortform.com\/blog\/opportunity-cost-decision-making\/\">opportunity cost<\/a>. Your focus should be on learning the fundamental meaning of these models and not their nitty-gritty details.<\/p>\n\n\n\n<p>Read on to discover more about the major types of mental models.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\"><strong>The Types of Mental Models<\/strong><\/h2>\n\n\n\n<p>Here\u2019s a list of mental models suggested directly by Munger across his speeches in <em>Poor Charlie\u2019s Almanack<\/em>. It\u2019s not a complete set of mental models you should know, but it\u2019s a good start to build off of.&nbsp;<\/p>\n\n\n\n<p>Observe a few things about the list:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>It reaches broadly across disciplines that you wouldn\u2019t normally think of interacting, like economics and physics.<\/li><li>Each discipline has specific ideas that have relevance outside the discipline.&nbsp;<\/li><\/ul>\n\n\n\n<p>We\u2019ve included links for the different types of mental models under each category as a starting point for research.<\/p>\n\n\n\n<p>The types of mental models include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>General<ul><li><a href=\"https:\/\/fs.blog\/2016\/04\/second-order-thinking\/\">2<sup>nd<\/sup>, 3<sup>rd<\/sup> order effects<\/a><\/li><\/ul><\/li><li>Math<ul><li>Numbers, quantities, basic arithmetic<\/li><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Compound_interest\">Compound interest<\/a><\/li><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Permutation\">Permutations<\/a> and <a href=\"https:\/\/en.wikipedia.org\/wiki\/Combination\">combinations<\/a><\/li><li>Accounting<\/li><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Decision_tree\">Decision trees<\/a><\/li><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Normal_distribution\">Gaussian distribution<\/a> (or <a href=\"https:\/\/www.shortform.com\/blog\/the-bell-curve\/\">bell curve<\/a>)<\/li><\/ul><\/li><li>Psychology<ul><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Extrinsic_incentives_bias\">Incentive-caused bias<\/a><\/li><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Law_of_the_instrument\">Hammer-and-nail bias<\/a><\/li><li><a href=\"https:\/\/www.shortform.com\/app\/book\/how-to-win-friends-and-influence-people\/fundamental-3\">Appealing to person&#8217;s self-interest<\/a><\/li><li><a href=\"https:\/\/www.shortform.com\/blog\/commitment-and-consistency-principle\/\">Consistency principle<\/a><\/li><li><a href=\"https:\/\/www.shortform.com\/app\/book\/influence\/chapter-4\">Social proof<\/a><\/li><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Sunk_cost\">Sunk cost<\/a><\/li><li><a href=\"https:\/\/www.shortform.com\/app\/book\/thinking-fast-and-slow\/part-4\">Deprival super-reaction<\/a> (or loss aversion)<\/li><li>First conclusion bias<\/li><li>Crowd folly<\/li><li><a href=\"https:\/\/www.shortform.com\/app\/book\/influence\/chapter-2\">Reciprocity<\/a><\/li><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Five_Ws\">Five Ws\u2014Who, What, Where, When, Why<\/a><\/li><\/ul><\/li><li>Engineering<ul><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Redundancy_(engineering)\">Backup system<\/a> (or redundancy)<\/li><li>Breakpoints<\/li><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Factor_of_safety\">Margin of safety<\/a><\/li><\/ul><\/li><li>Physics<ul><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Critical_mass\">Critical mass<\/a><\/li><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Autocatalysis\">Autocatalysis<\/a><\/li><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/List_of_types_of_equilibrium\">Equilibrium<\/a><\/li><\/ul><\/li><li>Economics<ul><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Market_economy\">Free market economy<\/a> (as an ecosystem where specializers can occupy a niche)<\/li><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Economies_of_scale\">Advantages of scale<\/a><\/li><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Diseconomies_of_scale\">Disadvantages of scale<\/a><\/li><li>Balances of advantages and disadvantages<\/li><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Wealth_effect\">Wealth effect<\/a><\/li><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Opportunity_cost\">Opportunity cost<\/a><\/li><li><a href=\"https:\/\/www.shortform.com\/app\/book\/freakonomics\/chapter-1\">Incentives<\/a><\/li><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Tragedy_of_the_commons\">Tragedy of the commons<\/a><\/li><li><a href=\"https:\/\/www.shortform.com\/app\/book\/basic-economics\/part-vi\">Comparative advantage in trade<\/a><\/li><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Division_of_labour\">Specialization<\/a><\/li><\/ul><\/li><li>Markets<ul><li>Technology can help or kill you<\/li><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Creative_destruction\">Competitive destruction with technology<\/a><\/li><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Parimutuel_betting\">Pari-mutuel system<\/a><\/li><li><a href=\"https:\/\/www.shortform.com\/app\/book\/the-intelligent-investor\/chapter-8\">Mr. Market<\/a><\/li><li><a href=\"https:\/\/www.shortform.com\/app\/book\/the-intelligent-investor\/chapter-1\">A stock is a piece of business<\/a><\/li><li><a href=\"https:\/\/www.shortform.com\/app\/book\/the-intelligent-investor\/chapter-20\">Margin of safety<\/a><\/li><li>Cancer surgery formula: Cut out everything in a business that doesn\u2019t work, and you\u2019re left with something that does.<\/li><\/ul><\/li><li>Management<ul><li><a href=\"https:\/\/www.shortform.com\/app\/book\/the-checklist-manifesto\/\">Checklists<\/a><\/li><li>Big \u201cno-brainer\u201d questions<\/li><li>Patents and trademarks<\/li><\/ul><\/li><li>Biology<ul><li><a href=\"https:\/\/en.wikipedia.org\/wiki\/Natural_selection\">Natural selection<\/a><\/li><li><a href=\"https:\/\/www.shortform.com\/app\/book\/thinking-in-systems\/chapter-1-2\">Feedback loops<\/a><\/li><\/ul><\/li><li>Statistics<\/li><li>Philosophy<\/li><li>History<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Get the Core Ideas, Don\u2019t Sweat the Details<\/strong><\/h3>\n\n\n\n<p>For purposes of general cognition, you don\u2019t need to learn the nitty-gritty technical details of the various types of mental models. You need only build an intuition for the fundamental meaning of the mental model.<\/p>\n\n\n\n<p>For instance, for the engineering concept of \u201cmargin of safety,\u201d you don\u2019t need to be able to analyze a bridge and calculate the exact margin of safety to five significant figures. Instead, take away the general idea\u2014that a system should have a degree of buffer before it fails.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>What are the major types of mental models? What should be your focus when learning a mental model? The many types of mental models cut across several disciplines including math, psychology, economics, physics, and more. They include models like Gaussian distribution, reciprocity, autocatalysis, and opportunity cost. Your focus should be on learning the fundamental meaning of these models and not their nitty-gritty details. Read on to discover more about the major types of mental models.<\/p>\n","protected":false},"author":10,"featured_media":54402,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[15,9],"tags":[533],"class_list":["post-54400","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-education","category-psychology","tag-poor-charlies-almanack","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>50 Types of Mental Models for Better Decision-Making - Shortform Books<\/title>\n<meta name=\"description\" content=\"What are the types of mental models? Here are the mental models across different disciplines to be combined for making better decisions.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.shortform.com\/blog\/types-of-mental-models\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"50 Types of Mental Models for Better Decision-Making\" \/>\n<meta property=\"og:description\" content=\"What are the types of mental models? 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