The Incentives Lab
The Incentive Atlas

758+ definitions for the age of incentive intelligence.

Every bias, fallacy, mental model, neuroscience principle, perverse incentive, and AI alignment term we teach — each with a real-world example, why it matters in the executive room, the AI implication, and a counter-move. Linkable, citable, searchable.

758 of 758 entries
Mental Models · Decision
10/10/10 Rule

How will I feel about this in 10 minutes / 10 months / 10 years?

Mental Models · Social
Abilene Paradox

A group decides on a course of action that nobody actually wants, because everyone assumes others prefer it.

Mental Models · Decision
Absent-Mindedness

Inattention or forgetfulness caused by low attention, hyperfocus, or distraction.

Mental Models · Reasoning
Abstractions

Deriving general rules from specific examples; the leap from instance to concept.

AI Incentives · Governance
Acceptable Use Policy (AI)

Written rules about how AI may be used internally.

Perverse Incentives · Corporate
Acquisition Earn-Outs

Earn-outs designed to retain founders often demotivate the team they bought.

Bias · Decision
Action Bias

Doing something feels safer than doing nothing — even when nothing wins.

Mental Models · Systems
Activation Energy

The minimum energy needed to start a reaction; same idea for starting habits or initiatives.

Mental Models · Social
Acton's Dictum

Power tends to corrupt, and absolute power corrupts absolutely.

Mental Models · Social
Actor-Observer Bias

We attribute our own actions to situations but others' actions to their character.

Fallacy · Relevance
Ad Hominem

Attacking the person rather than the argument.

Mental Models · Reasoning
Adaptive Bias

The brain evolved to reason adaptively, not always truthfully, to reduce the cost of errors.

Mental Models · Reasoning
Additive Bias

We solve problems by adding, even when subtracting would be better.

Perverse Incentives · Education
Adjunctification

Tenure-track jobs replaced by low-paid adjuncts, lowering cost and quality.

AI Incentives · Adoption
Adoption Curve (AI)

Innovators → early adopters → majority → laggards, AI-specific.

Mental Models · Strategy
Advantageous Divergence

Holding a different — and correct — set of tools than everyone else.

Bias · Decision
Affect Heuristic

Feelings act as shortcuts for facts.

Neuroscience · Emotion
Affect Labeling

Naming an emotion reduces its intensity.

Mental Models · Decision
Affective Forecasting

Predicting how we will feel in the future, usually inaccurately.

Mental Models · Social
Affinity / Liking Bias

We favor people who are similar to us or who like us.

Mental Models · Reasoning
Affirming a Disjunct

Assuming that if one option is true, another must be false, when both can be true.

Fallacy · Causation
Affirming the Consequent

If A then B; B happened; therefore A.

AI Incentives · Workflow
Agent

AI system that takes actions to achieve goals, often across tools.

Mental Models · Reasoning
Agent Detection

Presuming a purposeful actor behind events that may have no actor at all.

Mental Models · Strategy
Agent Provocateur

Someone who incites others to take illegal or rash action, often to expose or discredit them.

AI Incentives · Risk
Agentic Liability

When the agent acts, who's responsible?

Perverse Incentives · AI
AI Agent Liability Vacuum

Autonomous agents deployed before liability frameworks exist.

AI Incentives · Strategy
AI as Coach vs. AI as Replacement

Augmentation strategy vs. substitution strategy.

AI Incentives · Governance
AI Audit Trail

Logging of AI inputs, outputs, and decisions.

AI Incentives · Governance
AI Bill of Materials

Inventory of models, data, tools, and dependencies in an AI system.

AI Incentives · Governance
AI Bill of Materials Auditability

Tracing AI components for risk and compliance.

AI Incentives · Governance
AI Council / Committee

Cross-functional governance body for AI decisions.

AI Incentives · Governance
AI Governance Vacuum

Agents deployed before anyone owns the consequences.

AI Incentives · Strategy
AI Maturity Model

Stages of organizational AI capability.

Perverse Incentives · AI
AI Productivity Mirage

Individual productivity gains hide collective output degradation.

AI Incentives · Economics
AI Productivity Paradox

AI investment outpacing measurable productivity gains.

AI Incentives · Risk
AI Risk Tiering

Categorizing AI use cases by risk level.

AI Incentives · Strategy
AI Strategy as Capability Strategy

AI strategy = decisions about which capabilities to build and where.

AI Incentives · Talent
AI Talent Premium

Scarce AI talent commands market-distorting compensation.

AI Incentives · Workflow
AI-First Workflow Design

Designing processes from scratch around AI capability.

Perverse Incentives · AI
AI-Generated Content Spam Loop

AI generates content; AI scrapes content; AI trains on its own output.

AI Incentives · Talent
AI-Native vs. AI-Augmented Teams

Teams built around AI from day one vs. teams adding it to existing workflows.

Mental Models · Reasoning
Alder's Razor

What cannot be settled by experiment is not worth debating.

AI Incentives · Adoption
Algorithmic Aversion

Discounting algorithmic advice even when superior.

Mental Models · Reasoning
Algorithms

A finite set of well-defined instructions for solving a problem or performing a computation.

Mental Models · Reasoning
All Models Are Wrong

Every model simplifies reality; some are still useful.

Mental Models · Reasoning
Allegiance Bias

Researchers favor conclusions aligned with their school, team, or sponsor.

Neuroscience · Stress
Allostatic Load

Cumulative physiological wear from chronic stress.

Mental Models · Systems
Alloying

Combining substances to create a new material stronger than its parts.

Mental Models · Decision
Alternative Blindness

Forgetting to compare an offer with the next-best alternative.

Mental Models · Decision
Alternative Paths

Outcomes that could have happened but did not.

Bias · Probability
Ambiguity Aversion

We prefer known risks to unknown ones, even when the unknown is better.

Mental Models · Risk
Ambiguity Effect

Preferring options with known probabilities over options with unknown ones.

Neuroscience · Stress
Amygdala Hijack

Emotional override of rational processing.

Mental Models · Decision
Analysis Paralysis

Overthinking a situation so that decision-making stalls.

Bias · Decision
Anchoring Bias

Over-reliance on the first number that hits the table.

Fallacy · Statistical
Anecdotal Evidence

A single story used as proof of a general claim.

Mental Models · Reasoning
Anecdotal Fallacy

Using personal stories or isolated examples instead of evidence.

Perverse Incentives · Finance
Annual Bonus Risk

Annual bonuses reward annual results — risk that blows up in year four with damage in year seven is rational.

Perverse Incentives · Universal Pattern
Annual Performance Review

Once-a-year feedback rewards once-a-year behavior.

Neuroscience · Cognition
Anterior Cingulate Cortex

Brain region tracking conflict, error, and effort.

AI Incentives · Trust
Anthropomorphism

Treating AI as more humanlike than it is.

Neuroscience · AI Interaction
Anthropomorphism (AI)

We treat AI as more humanlike than it is.

Mental Models · Risk
Antifragility

Systems that gain from disorder.

Bias · Perception
Apophenia

Perceiving meaningful connections in unrelated things.

Fallacy · Relevance
Appeal to Authority

It's true because authority says so.

Fallacy · Relevance
Appeal to Common Sense

Common sense says so, therefore it's true.

Fallacy · Relevance
Appeal to Consequences

Believing something is true because of the consequences of its truth.

Fallacy · Emotion
Appeal to Emotion

Substituting feeling for argument.

Fallacy · Emotion
Appeal to Fear

Using fear instead of evidence.

Fallacy · Relevance
Appeal to Ignorance

Claiming something is true because it hasn't been proven false (or vice versa).

Mental Models · Reasoning
Appeal to Majority

Claiming something is true or better because most people believe it.

Fallacy · Relevance
Appeal to Nature

If it's 'natural,' it's good.

Fallacy · Relevance
Appeal to Novelty

It's better because it's newer.

Fallacy · Emotion
Appeal to Pity

Asking for a conclusion based on sympathy rather than logic.

Mental Models · Reasoning
Appeal to Probability

Assuming something is true because it is probable or possible.

Fallacy · Emotion
Appeal to Spite

Rejecting an argument because of dislike for the source or beneficiary.

Fallacy · Relevance
Appeal to Tradition

It's right because it's how we've always done it.

Mental Models · Economics
Arbitrage

Exploiting price differences between markets for risk-free profit.

Mental Models · Reasoning
Argument from Authority

Using an authority's opinion as evidence, regardless of its merits.

Mental Models · Reasoning
Argument from Fallacy

Concluding that a claim is false because the argument for it is flawed.

Fallacy · Causation
Argument from Final Consequences

Reasoning backward from outcomes to motives.

Mental Models · Reasoning
Argument from Ignorance

Claiming something is true because it has not been proven false.

Fallacy · Relevance
Argument from Incredulity

I can't believe it; therefore it isn't true.

Fallacy · Statistical
Argument from Personal Experience

n=1 generalized to n=everyone.

Mental Models · Reasoning
Argument from Repetition

Saying it often enough until objections fade.

Fallacy · Relevance
Argument from Repetition (Argumentum ad Nauseam)

Saying it enough times until it sounds true.

Mental Models · Reasoning
Argument from Silence

Drawing a conclusion from the absence of evidence rather than its presence.

Mental Models · Strategy
Art of War

Sun Tzu's ancient treatise on strategy, deception, and positioning.

Mental Models · Reasoning
Association Fallacy

Assuming qualities of one thing transfer to another because they are associated.

Mental Models · Social
Astroturfing

Masking the sponsors of a message to make it appear grassroots.

Mental Models · Strategy
Asymmetric Warfare

Conflict between belligerents with very different resources and tactics.

Neuroscience · Attention
Attention as a Resource

Attention is the most contested resource in modern work.

Neuroscience · Attention
Attention Residue

Task switches leave cognitive residue that degrades performance.

Mental Models · Decision
Attentional Bias

Our perception is shaped by what we selectively pay attention to.

Mental Models · Social
Attitude Polarization

Disagreement grows more extreme as the parties think more about the issue.

Mental Models · Reasoning
Attribute Substitution

Replacing a hard question with an easier one without realizing it.

Mental Models · Social
Attribution Bias

Systematic errors in explaining the causes of behavior — yours or others'.

Perverse Incentives · Finance
Audit Independence Erosion

Auditors paid by the firms they audit have predictable blind spots.

AI Incentives · Strategy
Augmentation vs. Automation

Augment when judgment matters. Automate when scale matters.

Bias · Social
Authority Bias

We overweight whoever has the bigger title in the room.

Mental Models · Decision
Automation Bias

Favoring suggestions from automated systems over conflicting human judgment.

AI Incentives · Trust
Automation Complacency

Reduced vigilance with automated systems.

Neuroscience · Motivation
Autonomy

Self-direction is one of the deepest motivational levers.

Mental Models · Reasoning
Availability Bias

Relying on examples that come to mind easily, not on actual frequency.

Bias · Belief
Availability Cascade

A story repeats until it becomes obviously true.

Bias · Memory
Availability Heuristic

We judge frequency by how easily examples come to mind.

Bias · Belief
Backfire Effect

Contradictory evidence sometimes deepens the original belief.

Bias · Social
Bandwagon Effect

Adopting beliefs because the room already did.

Fallacy · Relevance
Bandwagon Fallacy

It's true because many believe it.

Mental Models · Strategy
Barbell Strategy

Combine extreme safety with extreme risk; avoid the middle.

Mental Models · Social
Barnum Effect

We accept vague, general statements as personally meaningful.

Mental Models · Probability
Base Rate Fallacy

Ignoring general statistics in favor of specific, vivid information.

Bias · Probability
Base Rate Neglect

We ignore underlying probabilities in favor of vivid specifics.

Mental Models · Probability
Bayes' Rule (Updating)

Posterior = (likelihood × prior) / evidence.

Mental Models · Probability
Bayes' Theorem

Update beliefs in proportion to the strength of new evidence.

Mental Models · Probability
Bayesian Updating

Start with a prior; update with new evidence.

Mental Models · Social
Because Justification

Adding the word 'because' (with any reason) increases compliance dramatically.

Fallacy · Definition
Begging the Question

Assuming the conclusion in the premise.

Mental Models · Probability
Beginner's Luck

Novices experiencing early success, often due to variance and small samples.

Mental Models · Learning
Beginner's Mind

Approach a situation as if you knew nothing.

Neuroscience · Habit
Behavior Change

Willpower fails; structure works.

Mental Models · Social
Behavioral Contagion

Behaviors spread through groups via observation and imitation.

Mental Models · Reasoning
Belief Bias

Evaluating an argument's logic based on whether you agree with the conclusion.

Bias · Belief
Belief Perseverance

Beliefs survive the evidence that should have killed them.

Mental Models · Social
Ben Franklin Effect

We come to like people we've done a favor for, more than people who've helped us.

Mental Models · Reasoning
Benford's Law of Controversy

Passion is inversely proportional to the amount of real information available.

Mental Models · Reasoning
Betteridge's Law of Headlines

Any headline that ends in a question mark can be answered by the word no.

Mental Models · Decision
Bezold Effect

A color appears different depending on adjacent colors.

Bias · Self
Bias Blind Spot

We see bias in others more easily than in ourselves.

AI Incentives · Risk
Bias in AI Systems

Systematic skew in model behavior across groups.

Bias · Social
Bikeshedding (Parkinson's Law of Triviality)

Spending disproportionate energy on trivial decisions.

Mental Models · Social
Birthday-Number Effect

Subconscious preference for numbers (and letters) that appear in our own name or birthday.

Mental Models · Learning
Bizarreness Effect

Unusual or bizarre material is more memorable than common material.

Mental Models · Probability
Black Swan

High-impact, hard-to-predict, retrospectively explainable events.

Perverse Incentives · Finance
Bonus-Driven Window Dressing

Quarterly bonuses create end-of-quarter behavior changes.

Mental Models · Social
Boomerang Effect

A persuasive message produces the opposite of its intended effect.

Perverse Incentives · Corporate
Boomerang Hire Premium

Re-hires often get raises larger than internal promotions.

Neuroscience · Cognition
Boredom (Productive)

Boredom triggers creative wandering.

Mental Models · Systems
Bottleneck

A single constraint limits the throughput of an entire system.

Mental Models · Systems
Bottlenecks

A system's throughput is constrained by its single slowest step.

Mental Models · Reasoning
Boundary Extension

Remembering more context around a scene than was actually present.

Mental Models · Decision
Bounded Rationality

Decisions are constrained by available information, cognitive limits, and time.

Mental Models · Social
Brainwashing

The mind can be socially influenced toward conclusions that bypass scrutiny.

Mental Models · Reasoning
Brandolini's Law

The energy needed to refute bullshit is an order of magnitude bigger than to produce it.

Mental Models · Social
Bribery

Offering value in exchange for influence over a decision.

Mental Models · Systems
Broken Windows Theory

Small visible disorders signal that bigger ones will be tolerated.

Mental Models · Systems
Brook's Law

Adding manpower to a late software project makes it later.

Mental Models · Systems
Brooks's Law

Adding people to a late project makes it later.

AI Incentives · Strategy
Build vs. Buy vs. Partner (AI)

Strategic choice on AI capability sourcing.

Mental Models · Reasoning
Bulverism

Assuming the opponent is wrong, then explaining why they came to that wrong belief.

Fallacy · Relevance
Burden of Proof Shift

Asking the other side to disprove an unsupported claim.

Bias · Social
Bystander Effect

Diffused responsibility means nothing happens.

Perverse Incentives · Universal Pattern
Campbell's Law

The more a quantitative indicator drives decisions, the more it distorts the process it measures.

AI Incentives · Strategy
Capability Overhang

AI capability outpacing organizational ability to use it.

AI Incentives · Adoption
Cargo-Cult Adoption

AI bolted onto existing workflows to look forward-leaning.

Mental Models · Systems
Catalyst

A substance that speeds up a reaction without being consumed.

Mental Models · Social
Catfishing

Using a fake identity to deceive someone, usually for gain or manipulation.

Perverse Incentives · Corporate
CEO Pay-for-Stock-Price

Pay tied to stock price encourages short-term price management.

Mental Models · Systems
Chaos Theory

Nonlinear systems are highly sensitive to initial conditions.

Mental Models · Social
Character Assassination

Deliberate, sustained effort to damage someone's reputation.

Perverse Incentives · Universal Pattern
Charity Overhead Trap

Donors penalize 'overhead'; charities under-invest in capacity.

Mental Models · Reasoning
Chauffeur Knowledge

Knowledge from someone who can recite the answers but doesn't understand them.

Bias · Perception
Cheerleader Effect

People look better in groups than as individuals.

Mental Models · Reasoning
Chekhov's Gun

Every unnecessary element in a story must be removed, or it will be expected to matter.

Mental Models · Systems
Chemical Reactions

Inputs combine under conditions to produce new outputs — sometimes irreversibly.

Fallacy · Statistical
Cherry-Picked Citations

Quoting only the studies that support the position.

Fallacy · Statistical
Cherry-Picking

Selecting only the data that supports the conclusion.

Mental Models · Reasoning
Chesterton's Fence

Don't remove something until you understand why it was put there.

Mental Models · Reasoning
Childhood Amnesia

Adults can't recall early childhood; the memories never consolidated.

Mental Models · Social
Chilling Effect

The threat of retaliation suppresses legitimate speech or action.

Neuroscience · Decision
Choice Architecture

How options are presented changes which ones get chosen.

Neuroscience · Decision
Choice Overload

Too many options produces worse decisions and less satisfaction.

Bias · Memory
Choice-Supportive Bias

We remember our past choices as better than they were.

Neuroscience · Cognition
Chronobiology

Cognitive performance varies predictably with circadian rhythm.

Mental Models · Reasoning
Chronostasis

Temporal illusion where the first moment after a fast event seems stretched.

Mental Models · Learning
Chunking

Grouping information into familiar units to improve memory and processing.

Mental Models · Markets
Churn

The rate at which customers (or employees) leave over a period.

Mental Models · Social
Cinderella Effect

Higher rates of mistreatment toward stepchildren than biological children.

Mental Models · Reasoning
Circle of Competence

Know the perimeter of what you actually know.

Fallacy · Definition
Circular Reasoning

The conclusion is hidden inside the premise.

Mental Models · Reasoning
Clarke's Three Laws

Sufficiently advanced technology is indistinguishable from magic.

Mental Models · Learning
Classical Conditioning

Associating a neutral stimulus with a meaningful one until the neutral one triggers the response.

Perverse Incentives · Media
Clickbait Economics

Headlines optimized for clicks become editorial policy.

Bias · Perception
Clustering Illusion

Seeing patterns in random data.

Mental Models · Economics
Coase Theorem

With clear property rights and low transaction costs, parties negotiate to efficient outcomes.

Perverse Incentives · Universal Pattern
Cobra Effect

A reward designed to reduce X produces more X.

Mental Models · Decision
Cocktail Party Effect

The ability to focus on one voice in a noisy environment.

Mental Models · Reasoning
Cognitive Bias

Systematic deviations from rationality in judgment.

Neuroscience · Cognition
Cognitive Bias (Neural Roots)

Most biases are efficient heuristics misapplied.

Mental Models · Reasoning
Cognitive Dissonance

Psychological stress from holding contradictory beliefs; usually resolved by changing the easier one.

Neuroscience · Cognition
Cognitive Load

Working memory has limits.

Mental Models · Learning
Cognitive Load Theory

Working memory has limits.

Neuroscience · AI Interaction
Cognitive Offloading

Outsourcing thinking to tools shifts what we remember and learn.

Neuroscience · Cognition
Cognitive Reflection

Pausing System 1 to engage System 2.

Mental Models · Probability
Coincidence

Striking pattern that is statistically expected in large samples.

Bias · Social
Commitment & Consistency

Once we say it publicly, we'll defend it past the data.

Mental Models · Decision
Commitment Device

A mechanism that locks you into a future action to overcome present temptation.

Mental Models · Social
Common Knowledge

Information that everyone knows, and everyone knows that everyone knows.

Mental Models · Reasoning
Common Source Bias

Treating multiple data points as independent when they came from one source.

Mental Models · Economics
Comparative Advantage

Specialize in what you give up the least to do.

Mental Models · Decision
Compassion Fade

We care less as the number of victims increases.

Mental Models · Economics
Complements & Substitutes

Complements raise each other's value; substitutes lower it.

Mental Models · Systems
Complex Adaptive System

A system with many interacting parts that learn and adapt.

Mental Models · Systems
Complex Adaptive Systems

Many interacting parts producing emergent behavior nobody designed.

Perverse Incentives · Law
Compliance Theater

Compliance programs designed to satisfy regulators, not prevent harm.

Fallacy · Definition
Composition Fallacy

What's true of the parts is assumed true of the whole.

Mental Models · Systems
Compounding

Small advantages, applied consistently, become uncatchable.

AI Incentives · Economics
Compute Economics

GPU access and pricing shape what's feasible.

AI Incentives · Workflow
Concept Drift

The relationship between inputs and outputs changes.

Mental Models · Reasoning
Confabulation

Producing fabricated memories or explanations without intent to deceive.

AI Incentives · Trust
Confidence Intervals (AI)

Quantifying uncertainty in model outputs.

Mental Models · Social
Confidence Trick

Exploiting trust to defraud — only works because the mark wants to believe.

Bias · Belief
Confirmation Bias

We hunt for evidence that we were right all along.

Mental Models · Reasoning
Confounding Factor

A hidden variable that influences both supposed cause and supposed effect.

Mental Models · Reasoning
Congruence Bias

Testing hypotheses only by looking for confirming evidence.

Bias · Probability
Conjunction Fallacy

Believing a specific scenario is more likely than its more general one.

Bias · Belief
Conservatism Bias

Updating beliefs too slowly when new evidence arrives.

Mental Models · Learning
Consistency Bias

Remembering past attitudes and behavior as more consistent with present ones.

AI Incentives · Alignment
Constitutional AI

Models trained to follow a written set of principles.

Mental Models · Social
Contagion Bias

Avoiding contact with people or things perceived as 'contaminated'.

AI Incentives · Governance
Content Provenance (C2PA)

Cryptographic tracking of content origin.

Mental Models · Decision
Context Effect

Environmental factors influence perception and judgment.

AI Incentives · Workflow
Context Window

How much input the model can process at once.

Mental Models · Reasoning
Contextomy

Removing a quote from its context to distort its meaning.

Mental Models · Learning
Continued Influence Effect

Believing previously learned misinformation even after it has been corrected.

Fallacy · Definition
Continuum Fallacy

Because there's no sharp line, no distinction exists.

Mental Models · Decision
Contrast Effect

Evaluations are warped by what came immediately before.

Mental Models · Risk
Convexity vs. Concavity

Convex payoffs gain more than they lose; concave do the opposite.

Mental Models · Systems
Conway's Law

Software architecture mirrors org structure.

Mental Models · Social
Coolidge Effect

Renewed interest in a stimulus when a novel stimulus is introduced.

Mental Models · Strategy
Cooperation

Coordinated action that produces outcomes unavailable to individual actors.

Mental Models · Systems
Coordination Cost

Working together has a cost that scales with the number of people.

Fallacy · Causation
Correlation Implies Causation

Treating two things that move together as one causing the other.

Neuroscience · Stress
Cortisol

Stress hormone with cognitive and immune-system consequences.

AI Incentives · Economics
Cost-Per-Token Strategy

Operating economics shaped by per-token pricing.

Mental Models · Economics
Costs (Fixed vs. Variable)

Fixed costs don't scale with output; variable costs do.

AI Incentives · Risk
Counterfactual Testing

Testing model behavior on hypothetical alternate inputs.

Mental Models · Reasoning
Counterfactual Thinking

Imagining what could have happened instead of what did.

Mental Models · Strategy
Counterinsurgency

Winning the disputed population, not just defeating the visible opponent.

Mental Models · Strategy
Counterpropaganda

Countering hostile narratives with truthful, well-timed alternatives.

Mental Models · Social
Courtesy Bias

Giving polite rather than honest answers to avoid offense.

Mental Models · Economics
Creative Destruction

Innovation destroys old industries and creates new ones.

Mental Models · Learning
Crespi Effect

A conditioned response changes disproportionately when reinforcement changes.

Mental Models · Systems
Critical Mass

The threshold at which a system becomes self-sustaining.

Mental Models · Social
Cross-Race Effect

We recognize faces from our own race more accurately than others.

Mental Models · Markets
Crossing the Chasm

The gap between early adopters and the early majority kills most products.

Mental Models · Social
Crowd Folly

Groups sometimes behave as foolishly as the worst individuals.

Mental Models · Social
Crowd Manipulation

Influencing the beliefs and actions of a crowd through psychological techniques.

Mental Models · Reasoning
Cryptomnesia

Experiencing a remembered idea as if it were original.

Mental Models · Learning
Cue-Dependent Forgetting

Failure to recall when the retrieval cue is absent.

Mental Models · Social
Cultural Bias

Judging phenomena by the standards of one's own culture.

Fallacy · Causation
Cum Hoc Ergo Propter Hoc

With this, therefore because of this.

Mental Models · Social
Cunningham's Law

The best way to get a right answer online is to post a wrong one.

Mental Models · Learning
Curiosity Tendency

The drive to explore and understand for its own sake.

Bias · Social
Curse of Knowledge

Forgetting what it's like not to know what you know.

Neuroscience · Cognition
Curse of the Familiar

Familiar information feels true.

AI Incentives · Workflow
Data Drift

Underlying data distribution changes over time.

AI Incentives · Governance
Data Lineage

Tracking where training and inference data came from.

Mental Models · Learning
Debiasing

Reducing cognitive biases through training, structure, and process.

Neuroscience · Decision
Decision Fatigue

Decision quality degrades over the course of a day.

Mental Models · Reasoning
Declinism

Believing that society or one's institution is in inexorable decline.

Bias · Decision
Decoy Effect

Adding a clearly worse option steers people toward the option you wanted.

Bias · Decision
Default Effect

Whatever is pre-selected wins more often than it should.

Neuroscience · Decision
Default Effect (Neural)

Defaults bypass active cognition.

Neuroscience · Cognition
Default Mode Network

Brain network active during rest and mind-wandering — and during creative insight.

Mental Models · Reasoning
Defense Mechanism

Unconscious psychological strategies that protect self-image.

Mental Models · Social
Defensive Attribution

Attributing causes to protect oneself from blame or vulnerability.

Perverse Incentives · Law
Defensive Documentation

Decisions made to be defensible, not to be right.

Fallacy · Definition
Definitional Retreat

Quietly redefining a term mid-argument.

Mental Models · Reasoning
Déformation Professionnelle

Seeing every problem through the lens of one's profession.

Mental Models · Strategy
Demoralization

Eroding the will to act, even when capacity remains.

Mental Models · Reasoning
Denial

Refusing to accept reality, despite evidence.

Mental Models · Decision
Denomination Effect

We spend less when holding large bills than small ones — same money, different behavior.

Fallacy · Causation
Denying the Antecedent

If A then B; not A; therefore not B.

Mental Models · Strategy
Deserve What You Want

Munger's principle: the surest way to get something is to deserve it.

Mental Models · Systems
Designing for the Bottom

Designing systems for the lowest-capability user produces resilience for everyone.

Mental Models · Decision
Devil's Advocate

A designated dissenter in any major decision.

Mental Models · Systems
Dialectical Materialism

The idea that material conditions and contradictions drive historical change.

Neuroscience · Cognition
Diet & Decision Quality

Glucose, omega-3s, sleep, and hydration each influence decision quality.

AI Incentives · Risk
Differential Privacy

Adding noise to data to protect individual privacy.

Mental Models · Markets
Diffusion of Innovations

Innovators → early adopters → early majority → late majority → laggards.

Mental Models · Social
Dilbert Principle

Incompetent employees are promoted to management to limit their workflow damage.

Mental Models · Economics
Diminishing Returns

Each additional unit produces less marginal benefit.

Mental Models · Reasoning
Disconfirmation Bias

Applying higher scrutiny to evidence we disagree with than to evidence we agree with.

Mental Models · Reasoning
Disconfirming Evidence

Actively seeking evidence that would disprove your hypothesis.

Mental Models · Economics
Discount Rate

How much we value the present over the future.

Mental Models · Social
Disinformation

Deliberately false information spread to deceive.

Mental Models · Social
Disliking/Hating Tendency

We dismiss the ideas and merits of people we dislike.

Mental Models · Decision
Disposition Effect

Selling winners too early and holding losers too long.

Mental Models · Markets
Disruption Theory

Low-end or new-market entrants overtake established incumbents.

Mental Models · Decision
Distinction Bias

Two options seen side-by-side look more different than they are in isolation.

Neuroscience · Attention
Distributed Attention

Multitasking measurably degrades performance.

Mental Models · Probability
Distributions

Reasoning in distributions — ranges and probabilities — rather than points.

Fallacy · Definition
Division Fallacy

What's true of the whole is assumed true of the parts.

Mental Models · Learning
Domain Dependence

Insights from one domain don't automatically transfer to another.

Neuroscience · Reward
Dopamine

Neurotransmitter of anticipation, not pleasure.

Perverse Incentives · Sports
Doping Equilibrium

Once any player dopes, everyone is forced to consider it.

Mental Models · Reasoning
Doubt-Avoidance Tendency

Resolving doubt by jumping to a conclusion — any conclusion — quickly.

Perverse Incentives · Sports
Drafting for Picks, Not Wins

Bad teams 'tank' for better draft positions.

Mental Models · Risk
Dread Aversion

Dread weighs roughly double in our calculus what the equivalent gain does.

Mental Models · Reasoning
Drug-Misinfluence Tendency

Substance dependence distorts judgment and accelerates decline.

Neuroscience · Decision
Dual-Process Theory

Two ways of thinking, both real, both useful, often mis-deployed.

Mental Models · Systems
Dunbar's Number

~150 — the cognitive limit on stable social relationships.

Bias · Self
Dunning-Kruger Effect

Low ability paired with high confidence.

Mental Models · Decision
Duration Neglect

We remember peaks and ends, not the duration in between.

Mental Models · Reasoning
Dysrationalia

Inability to think rationally despite adequate intelligence.

Perverse Incentives · Finance
Earnings Management

Quarterly earnings drive quarterly behavior.

Mental Models · Reasoning
Ecological Fallacy

Drawing conclusions about individuals from group-level data.

Mental Models · Systems
Ecosystem

Interdependent network of actors evolving together.

Mental Models · Reasoning
Effort Justification

We value outcomes more when we worked hard for them.

Neuroscience · Cognition
Ego Depletion

Self-control draws from a limited daily pool. (Contested in lab; observed in life.)

Mental Models · Reasoning
Egocentric Bias

Over-weighting one's own perspective when reconstructing events.

Bias · Perception
Einstellung Effect

Prior solutions block better new ones.

Mental Models · Decision
Eisenhower Matrix

Urgent vs. important; act, schedule, delegate, delete.

Mental Models · Decision
Eisenhower's Quadrant II

Important-but-not-urgent is where strategic leverage lives.

Fallacy · Definition
Either-Or Trap (more refined false dichotomy)

Constraining the option set to bias the decision.

Perverse Incentives · Government
Election Cycle Bias

Politicians optimize for the next election, not the next generation.

AI Incentives · Workflow
Embedding

Vector representation of content for similarity and search.

Neuroscience · Cognition
Embodied Cognition

Thinking happens through the body, not despite it.

Mental Models · Systems
Emergence

The whole has properties that the individual parts do not.

Mental Models · Decision
Emotional Bias

Emotional states distort cognition and decision-making.

Neuroscience · Emotion
Emotional Contagion

Emotions spread through groups via micro-cues.

Bias · Self
Empathy Gap

Cold-state decisions don't survive hot-state moments.

Neuroscience · Social Brain
Empathy vs. Compassion

Empathy: feel with. Compassion: act for. Different neural circuits.

Mental Models · Reasoning
Enclothed Cognition

What we wear influences how we think and perform.

Mental Models · Learning
End-of-History Illusion

We believe we will change less in the future than we actually will.

Bias · Decision
Endowment Effect

We value things more once they're ours.

Mental Models · Reasoning
Energy Output Minimization

The brain minimizes effort by default — most cognition is on cruise control.

Perverse Incentives · Media
Engagement Algorithms

Outrage outperforms accuracy on every engagement metric.

Perverse Incentives · Technology
Engagement-Time Paradox

Time-on-app is the wrong thing to maximize for users — but the right thing for revenue.

Mental Models · Systems
Entropy

Systems tend toward disorder unless energy is invested to maintain order.

Mental Models · Social
Envy/Jealousy Tendency

We measure ourselves against peers, not against our past selves.

Mental Models · Systems
Equilibrium / Homeostasis

Systems maintain stability by self-regulating around a setpoint.

Mental Models · Reasoning
Equivalence

Two things may be equivalent in effect but not in form.

Fallacy · Ambiguity
Equivocation

Using a word with two meanings as if it meant one.

Mental Models · Probability
Ergodicity

Average outcomes across the population differ from outcomes across time for one person.

Mental Models · Decision
Escalation of Commitment

Continuing a failing course of action because of prior investment.

Fallacy · Definition
Etymological Fallacy

Insisting on a word's original meaning over its current one.

AI Incentives · Governance
EU AI Act

Comprehensive AI regulation in the EU.

Mental Models · Reasoning
Euphoric Recall

Remembering past experiences as more positive than they were.

AI Incentives · Workflow
Eval Drift

Evaluation suites that no longer reflect real-world conditions.

AI Incentives · Workflow
Evaluation Frameworks (Evals)

Systematic testing of model quality, safety, and capability.

Mental Models · Systems
Evolution

Variation, selection, retention — the engine of cumulative change.

Mental Models · Decision
Exaggerated Expectation

Predicting more extreme outcomes than actually occur.

Neuroscience · Cognition
Exercise & Cognition

Aerobic exercise measurably improves executive function.

Mental Models · Reasoning
Existential Fallacy

Assuming something exists because we can name or define it.

Mental Models · Decision
Expected Utility (vs. Expected Value)

Decisions optimize utility, not value.

Mental Models · Probability
Expected Value

Probability × payoff, summed across outcomes.

AI Incentives · Governance
Explainability vs. Interpretability

Why did it produce this? vs. How does it work?

Mental Models · Systems
Exponential Growth

Growth whose rate becomes ever more rapid in proportion to the growing quantity.

Mental Models · Reasoning
Extension Neglect

Ignoring the size of a sample or population in our judgments.

Mental Models · Economics
Externalities

Costs or benefits that affect third parties not involved in a transaction.

Mental Models · Social
Extrinsic Incentives Bias

Believing others are motivated by extrinsic rewards while we are motivated intrinsically.

Neuroscience · Motivation
Extrinsic Motivation

Doing something for an external reward.

Mental Models · Reasoning
Fading Affect Bias

Negative emotions fade faster than positive ones.

AI Incentives · Risk
Fairness Metrics

Quantitative measures of model behavior across groups.

Mental Models · Social
Fake News

False information presented as legitimate journalism.

Mental Models · Reasoning
Fallacies

Errors in reasoning that undermine the logic of an argument.

Fallacy · Relevance
Fallacy Fallacy

Concluding that because an argument contained a fallacy, its conclusion must be false.

Mental Models · Reasoning
False Analogy

Reasoning that two things are alike based on shallow similarity.

Mental Models · Reasoning
False Attribution

Crediting a source or cause that isn't actually responsible.

Mental Models · Reasoning
False Causality

Correlation does not imply causation.

Mental Models · Reasoning
False Cause (Post Hoc)

Assuming that because B followed A, A caused B.

Bias · Social
False Consensus Effect

Assuming everyone secretly agrees with us.

Fallacy · Relevance
False Dichotomy

Presenting two options as the only possibilities.

Mental Models · Reasoning
False Dilemma

Presenting two options as the only possibilities when more exist.

Fallacy · Definition
False Equivalence

Treating two things as comparable when they're not.

Mental Models · Strategy
False Flag

An act committed to look like it was done by someone else.

Mental Models · Learning
False Memory

Recalling something that did not happen or recalling it differently.

Mental Models · Social
False Uniqueness Effect

Underestimating how common our positive traits and behaviors are.

Mental Models · Reasoning
Falsifiability

For a claim to be scientific, it must be possible to prove it false.

Mental Models · Learning
Fan Effect

As more facts are learned about a topic, retrieving any one fact slows.

Mental Models · Strategy
Fear, Uncertainty, Doubt (FUD)

A strategy to influence behavior by amplifying fear and uncertainty.

Mental Models · Reasoning
Feature-Positive Effect

We notice what's present more than what's absent.

AI Incentives · Risk
Federated Learning

Training models across devices without centralizing data.

Perverse Incentives · Healthcare
Fee-for-Service Healthcare

Paying providers per procedure rewards more procedures, not better outcomes.

Mental Models · Systems
Feedback Loops

Outputs of a system are routed back as inputs, amplifying or dampening change.

Mental Models · Probability
Fermi Estimate

A rough calculation using order-of-magnitude reasoning.

Mental Models · Reasoning
Fermi Estimation

Decompose a problem into estimable parts; multiply through.

Mental Models · Social
Festinger's Cognitive Dissonance

Mental discomfort from holding conflicting beliefs or values.

Mental Models · Social
Filter Bubble

Algorithms show us content that reinforces our existing views.

AI Incentives · Strategy
Fine-Tuning

Specialized training on domain data.

Mental Models · Reasoning
First Principles

Break a problem down to irreducible truths and rebuild from there.

Mental Models · Reasoning
First Principles Thinking

Reasoning from foundational truths rather than from analogy or convention.

Mental Models · Reasoning
First-Conclusion Bias

Mind latches onto the first plausible explanation and resists alternatives.

Mental Models · Learning
Five Whys

Asking 'why' repeatedly to trace a problem to its root cause.

Mental Models · Reasoning
Five Ws

Who, what, when, where, why — the minimum facts for any account.

Mental Models · Learning
Fixed Mindset

Believing abilities are static and cannot be developed.

Neuroscience · Cognition
Flow State

Neurological state of peak performance and engagement.

Mental Models · Learning
Flynn Effect

IQ scores have risen substantially over generations.

Mental Models · Systems
Flywheel Effect

Self-reinforcing loops of momentum.

Neuroscience · Attention
Focused vs. Diffuse Attention

Two modes the brain alternates between.

Mental Models · Decision
Focusing Effect

We overweight one aspect of an event when predicting its impact.

Perverse Incentives · Corporate
Forecast Sandbagging

Sales forecasts under-set to ensure attainment bonus.

Mental Models · Social
Forer Effect

We accept vague, positive personality descriptions as highly accurate.

AI Incentives · Economics
Foundation Model Concentration

A handful of providers shape the entire AI economy.

Bias · Decision
Framing Effect

The same information lands differently depending on how it's wrapped.

Neuroscience · Cognition
Free Energy Principle

Living systems minimize surprise to survive.

Mental Models · Reasoning
Frequency Illusion

After noticing something, we start seeing it everywhere.

Bias · Perception
Functional Fixedness

Seeing things only in their conventional use.

Bias · Social
Fundamental Attribution Error

Their failure: character. Our failure: situation.

Mental Models · Reasoning
Funding Bias

Research outcomes tend to favor the interests of the funders.

Fallacy · Causation
Galaxy-Brain Reasoning

Stacking so many tenuous links that the conclusion sounds clever.

Mental Models · Systems
Gall's Law

A complex system that works is invariably found to have evolved from a simple system.

Bias · Probability
Gambler's Fallacy

Believing past random events influence future independent ones.

Mental Models · Strategy
Game Theory

Decisions depend on what other strategic actors will do.

Mental Models · Social
Gaslighting

Making someone question their own reality or perceptions.

Mental Models · Learning
Gell-Mann Amnesia

Experts believe news articles outside their field despite knowing their own field is misreported.

Fallacy · Relevance
Genetic Fallacy

Judging an argument by its origin rather than its merit.

Fallacy · Relevance
Gish Gallop

Burying the room in a flood of weak arguments faster than they can be addressed.

Mental Models · Social
Godwin's Law

As online discussions grow longer, the probability of a Nazi comparison approaches one.

Bias · Social
Golem Effect

Low expectations produce low performance.

Perverse Incentives · Universal Pattern
Goodhart's Law

When a measure becomes a target, it ceases to be a good measure.

AI Incentives · Alignment
Goodhart's Law (AI form)

Optimizing a proxy of the goal degrades the actual goal.

Perverse Incentives · Education
Grade Inflation

Professors rewarded by student evaluations have an incentive to inflate.

Mental Models · Economics
Gresham's Law

Bad money drives out good when both are legally equivalent.

Mental Models · Social
Group Polarization

Groups make more extreme decisions than individuals would alone.

Mental Models · Social
Groupthink

Desire for conformity leads to irrational or dysfunctional decisions.

Neuroscience · Learning
Growth Mindset

Believing abilities can be developed.

Neuroscience · Habit
Habit Loop

Cue → routine → reward.

Neuroscience · Habit
Habit Stacking

New habits anchored to existing ones stick faster.

Neuroscience · Habit
Habituation

Repeated stimuli produce diminishing response.

AI Incentives · Trust
Hallucination

Confident outputs that are factually wrong.

Perverse Incentives · AI
Hallucination as Engagement

Confident incorrect outputs may rank higher than hedged correct ones.

Bias · Social
Halo Effect

One strong trait colors judgment of unrelated traits.

Mental Models · Social
Hanlon's Razor

Don't attribute to malice what's explainable by incompetence — or incentives.

Fallacy · Statistical
Hasty Generalization

Sweeping conclusions from a small sample.

Mental Models · Social
Hawthorne Effect

People change behavior when they know they are being observed.

Perverse Incentives · Corporate
Headcount as Status

Managers measured by team size grow teams beyond need.

Mental Models · Learning
Hebb's Law

Neurons that fire together wire together.

Mental Models · Strategy
Hedgehog Concept (Collins)

Intersection of what you're best at, passionate about, and economically viable in.

Mental Models · Reasoning
Hedgehog vs. Fox

Hedgehogs know one big thing; foxes know many small things.

Neuroscience · Reward
Hedonic Adaptation

We return to a baseline of well-being after gains or losses.

Mental Models · Probability
Heisenberg Uncertainty Principle

In quantum mechanics, certain pairs of properties cannot both be precisely known.

Mental Models · Social
Herd Mentality

People adopt behaviors and opinions because others do.

Mental Models · Decision
Hick's Law

Decision time grows with the number of choices.

Bias · Memory
Hindsight Bias

Believing past events were obviously predictable once we know how they ended.

Mental Models · Reasoning
Hitchens's Razor

What can be asserted without evidence can be dismissed without evidence.

Mental Models · Systems
Hofstadter's Law

Everything takes longer than you expect, even when you account for Hofstadter's Law.

Mental Models · Systems
Holism

Systems should be understood as wholes, not just as collections of parts.

Bias · Probability
Hot-Hand Fallacy

Believing streaks predict future streaks.

AI Incentives · Governance
Human-in-the-Loop

Human review at critical AI decision points.

AI Incentives · Governance
Human-on-the-Loop

Human oversight without per-decision review.

Bias · Decision
Hyperbolic Discounting

We disproportionately prefer rewards now over rewards later.

Mental Models · Social
Hysterical Contagion

Symptoms or beliefs spread through a group with no underlying physical cause.

Neuroscience · Emotion
Identity Threat

Threats to identity activate strong defensive responses.

Bias · Decision
IKEA Effect

We overvalue things we built ourselves.

Bias · Self
Illusion of Control

Believing we influence outcomes that are largely random.

Mental Models · Social
Illusion of Transparency

We overestimate how much others understand our thoughts and feelings.

Bias · Self
Illusion of Validity

Confidence in predictions outruns their actual accuracy.

Bias · Self
Illusory Superiority

Most of us think we're above average. Statistically, we can't be.

Mental Models · Decision
Impact Bias

We overestimate the intensity and duration of emotional reactions.

Neuroscience · Emotion
Imposter Phenomenon

Subjective feeling of not deserving one's success.

Mental Models · Learning
Imposter Syndrome

Doubt about one's abilities and fear of being exposed as a fraud.

AI Incentives · Workflow
In-Context Learning

Models learning from examples in the prompt.

Bias · Social
In-Group Bias

We extend more trust, benefit of the doubt, and rope to 'our people.'

Mental Models · Decision
Inattentional Blindness

We miss unexpected events when focused on something else.

AI Incentives · Economics
Inference vs. Training Cost

Training is a one-time cost. Inference is forever.

Perverse Incentives · Media
Influencer Authenticity Inversion

Authenticity becomes a performance the moment it becomes a paycheck.

Mental Models · Economics
Information Asymmetry

One party has more or better information than another.

Bias · Decision
Information Bias

Believing more information leads to better decisions, regardless of relevance.

Mental Models · Social
Information Cascade

People copy the choices of others, assuming they have private information.

Mental Models · Social
Ingroup Favoritism

We favor members of our own group over outsiders.

AI Incentives · Alignment
Inner vs. Outer Alignment

Outer: the spec matches our intent. Inner: the model actually pursues the spec.

Perverse Incentives · Corporate
Innovation Award Distortion

Awards reward visible novelty; quiet excellence goes unrecognized.

Perverse Incentives · Corporate
Innovation Theater

Innovation programs designed to signal innovation, not to produce it.

Mental Models · Markets
Innovator's Dilemma

Doing everything right by current customers can kill you.

Mental Models · Probability
Insensitivity to Sample Size

We ignore sample size when judging probability.

Mental Models · Strategy
Instrumental Convergence

Different agents pursue the same subgoals regardless of their ultimate goals.

Neuroscience · Emotion
Insula

Brain region tracking internal state and gut feeling.

Perverse Incentives · Healthcare
Insurance Claim Friction

Insurers profit when claims are denied, delayed, or abandoned.

Perverse Incentives · Corporate
Internal Transfer Friction

Managers hoard talent; cross-team mobility dies.

Mental Models · Economics
Intertemporal Choice

Decisions involve trade-offs between costs and benefits at different times.

Neuroscience · Motivation
Intrinsic Motivation

Doing something because the doing is the reward.

Mental Models · Reasoning
Inversion

Solve forward by asking how to fail.

Mental Models · Systems
Iron Law of Bureaucracy

Bureaucracies tend to expand and protect themselves, regardless of their original purpose.

AI Incentives · Risk
Jailbreak

Bypassing model safety constraints.

AI Incentives · Adoption
Job Redesign

Redesigning roles around AI capability.

Mental Models · Markets
Jobs to Be Done

Customers hire products to do a job in their life.

Fallacy · Relevance
Just Asking Questions (JAQing off)

Implying conclusions through leading questions while disclaiming responsibility.

Bias · Belief
Just-World Hypothesis

Believing people get what they deserve.

Mental Models · Probability
Kelly Criterion

Bet size optimized to maximize long-run growth without ruin.

Mental Models · Reasoning
KISS Principle

Keep it simple, stupid. Simplicity beats complexity in design and communication.

Mental Models · Learning
Knowledge Curse

Once we know something, it is hard to imagine not knowing it.

AI Incentives · Workflow
Latency Budget

How much delay the user experience tolerates.

Mental Models · Learning
Latticework of Mental Models

A diverse set of models from many disciplines, used together.

Mental Models · Probability
Law of Large Numbers

As sample size grows, sample averages converge to expected values.

Mental Models · Probability
Law of Small Numbers

We expect small samples to reflect population properties.

Mental Models · Systems
Law of Triviality

Organizations give disproportionate weight to trivial issues.

Bias · Decision
Law of Triviality + Goodhart Combined

When trivial metrics become the target, the trivial becomes the strategy.

Mental Models · Systems
Le Chatelier's Principle

When a system in equilibrium is disturbed, it shifts to counteract the change.

Mental Models · Learning
Learned Helplessness

Giving up after repeated exposure to uncontrollable negative events.

Mental Models · Learning
Learning Curve

Performance improves with practice, but gains slow over time.

Mental Models · Economics
Lemon Market

When quality is hard to verify, bad products drive out good ones.

Bias · Social
Liking Bias

We're more persuaded by people we like.

Mental Models · Probability
Lindy Effect

The longer an idea has survived, the longer it likely will.

Mental Models · Reasoning
Linear Thinking

Expecting change to happen at a constant rate.

Perverse Incentives · Law
Litigation Economics

Contingency-fee structures shape which cases get filed.

Fallacy · Ambiguity
Loaded Language

Words chosen to bias the audience toward a conclusion.

Fallacy · Ambiguity
Loaded Question

A question with a built-in unproven assumption.

Mental Models · Systems
Local Maximum

Optimizing in a small region while missing a better global solution.

Mental Models · Strategy
Local vs. Global Maximum

The best place nearby vs. the best place overall.

Mental Models · Economics
Lock-in Effect

Customers become trapped in a product due to switching costs or network effects.

Mental Models · Markets
Long Tail

Aggregating many niche markets equals or exceeds the mainstream.

Neuroscience · Memory
Long-Term Potentiation

Neural mechanism of learning — connections strengthened by repeated activation.

Bias · Decision
Loss Aversion

Losses hurt roughly twice as much as equivalent gains feel good.

Neuroscience · Emotion
Loss Aversion (Neural)

Loss processed more intensely than equivalent gain.

Mental Models · Decision
Loss Function

How outcomes are weighted in the decision calculus.

Mental Models · Probability
Ludic Fallacy

Treating real-world uncertainty like a game with clear, known rules.

Mental Models · Reasoning
Map vs. Territory

Models are simplifications — never the thing itself.

Mental Models · Risk
Margin of Safety

Build buffers so small mistakes don't become fatal.

Mental Models · Economics
Marginal Analysis

Decisions hinge on the next unit, not on the average.

Mental Models · Economics
Marginal Utility

Each additional unit of a good provides less satisfaction than the previous one.

Mental Models · Economics
Market Failure

Markets fail to allocate resources efficiently on their own.

Mental Models · Reasoning
Maslow's Hammer

When all you have is a hammer, everything looks like a nail.

Neuroscience · Motivation
Mastery

The drive to get better at things that matter.

Mental Models · Reasoning
McNamara Fallacy

Relying solely on metrics that are easily quantified while ignoring what matters.

Neuroscience · Memory
Memory Reconstruction

Memories are reconstructed each time we recall them, not retrieved intact.

Bias · Decision
Mental Accounting

We treat money differently depending on which bucket it's in.

Mental Models · Strategy
Mental Model of the Other Side

Always have a working model of what your counterpart believes.

Bias · Perception
Mere Exposure Effect

Familiarity breeds approval.

AI Incentives · Alignment
Mesa-Optimization

The trained model develops its own internal optimizer.

Mental Models · Learning
Meta-Analysis

Combining results from multiple studies to find robust conclusions.

Mental Models · Learning
Metacognition

Thinking about one's own thinking.

Fallacy · Definition
Middle Ground Fallacy

Assuming the truth must lie between two extremes.

Mental Models · Social
Milgram Experiment

People will obey authority even when asked to harm others.

Mental Models · Social
Mimetic Desire (Girard)

We want what others want.

Mental Models · Decision
Minimax Regret

Choose the option whose worst-case regret is least bad.

Mental Models · Strategy
Minimum Viable Product

The simplest version of a product that can test a core hypothesis.

Mental Models · Social
Minority Influence

A consistent minority can shift the majority's views over time.

Neuroscience · Social Brain
Mirror Neurons

Neurons that fire both when acting and when observing the action.

AI Incentives · Governance
Model Cards

Documentation of model purpose, performance, limitations, and risks.

AI Incentives · Workflow
Model Distillation

Train a smaller model to imitate a larger one.

AI Incentives · Workflow
Model Drift

Performance degradation as real-world data shifts.

Perverse Incentives · Universal Pattern
Moral Hazard

Insulation from risk changes the risks people take.

Mental Models · Social
Moral Licensing

Past good behavior makes us feel entitled to later bad behavior.

Fallacy · Definition
Moralistic Fallacy

Deriving 'is' from 'ought.'

Perverse Incentives · Finance
Mortgage Origination Pre-2008

Originators paid on volume, not on default rates.

Perverse Incentives · Corporate
Mortgaging the Future

Today's metrics achieved by quietly borrowing from tomorrow.

Fallacy · Definition
Moving the Goalposts

Changing success criteria whenever the prior criteria are met.

AI Incentives · Workflow
Multi-Agent Systems

Multiple specialized agents coordinating on tasks.

Mental Models · Probability
Murphy's Law

Anything that can go wrong will go wrong.

Mental Models · Reasoning
Narrative Fallacy

We prefer stories over raw facts, even when the story is misleading.

Mental Models · Strategy
Nash Equilibrium

A state where no player benefits from changing strategy unilaterally.

Fallacy · Definition
Naturalistic Fallacy

Deriving 'ought' from 'is.'

Bias · Perception
Negativity Bias

Bad lands harder than good.

Neuroscience · Emotion
Negativity Bias (Neural)

Bad lands harder than good in the brain.

Mental Models · Economics
Network Effects

Value grows with the number of users.

Neuroscience · Learning
Neuroplasticity

The brain reshapes itself based on use.

AI Incentives · Governance
NIST AI RMF

U.S. voluntary AI risk management framework.

Fallacy · Definition
No True Scotsman

Redefining a category to exclude counterexamples.

Mental Models · Probability
Normal Distribution

A symmetric bell-shaped distribution where most values cluster around the mean.

Mental Models · Social
Not Invented Here

A bias against ideas or products that originated outside the group.

Perverse Incentives · Technology
Notification Inflation

Notifications calibrated for return visits, not value.

AI Incentives · Alignment
Objective Function

What the model is actually optimizing.

Mental Models · Reasoning
Occam's Razor

Prefer the simplest explanation consistent with the evidence.

Perverse Incentives · Universal Pattern
OKR Inflation

When OKRs are tied to comp, ambition disappears.

Mental Models · Strategy
OKRs (Objectives and Key Results)

Ambitious objectives paired with measurable key results.

Bias · Decision
Omission Bias

We judge harm by action more harshly than the same harm by inaction.

AI Incentives · Workflow
On-Device vs. Cloud

Where the model runs shapes privacy, latency, cost, and capability.

Mental Models · Decision
OODA Loop

Observe, Orient, Decide, Act — faster than your competitor.

Perverse Incentives · Corporate
Open Office Productivity Paradox

Designed for collaboration; produces measurable productivity decline.

AI Incentives · Strategy
Open vs. Closed Models

Open-weight vs. API-only models.

Mental Models · Learning
Operant Conditioning

Behavior shaped by reinforcement and punishment over repeated trials.

Mental Models · Economics
Opportunity Cost

The value of the next-best thing you could have done.

Bias · Probability
Optimism Bias

Underestimating the probability of bad outcomes — especially to us.

Mental Models · Strategy
Optionality

Investments that give you future choices.

Bias · Self
Ostrich Effect

Avoiding information that might be unpleasant.

Bias · Social
Out-Group Homogeneity Bias

We see 'them' as more uniform than 'us.'

Mental Models · Decision
Outcome Bias

Judging a decision by its outcome rather than by the quality of the process.

Bias · Self
Overconfidence Effect

Confidence routinely outruns calibration.

Mental Models · Learning
Overfitting

A model that explains historical data too closely will fail on new data.

Neuroscience · Motivation
Overjustification Effect

Adding external rewards reduces intrinsic motivation.

Mental Models · Social
Overton Window

The range of policies or ideas that are politically acceptable at a given time.

Neuroscience · Social Brain
Oxytocin

Neurochemistry of trust, bonding, and in-group loyalty.

Mental Models · Systems
Pareto Principle (80/20)

Most outcomes come from a few causes.

Bias · Decision
Parkinson's Law

Work expands to fill the time available for it.

Mental Models · Systems
Path Dependence

Where you can go is constrained by where you've been.

Bias · Memory
Peak-End Rule

We judge experiences by their peak moment and how they ended.

Fallacy · Relevance
Personal Incredulity

I can't imagine how it works, therefore it doesn't.

Bias · Probability
Pessimism Bias

Overestimating the probability of bad outcomes.

Bias · Probability
Pessimism in Forecasting

Worst-cases assumed as base-cases because they 'feel responsible.'

Mental Models · Social
Peter Principle

People are promoted until they reach a position where they are incompetent.

Perverse Incentives · Healthcare
Pharma Patent Cliff

Drug companies optimize for high-margin chronic conditions, not cures.

Perverse Incentives · Healthcare
Physician Reimbursement

Specialists earn more for procedures than primary care for prevention.

AI Incentives · Adoption
Pilot Purgatory

AI pilots that succeed and never scale.

Bias · Probability
Planning Fallacy

We underestimate time and cost; we overestimate benefit.

Mental Models · Strategy
Plausible Deniability

Structuring actions so that responsibility can be denied.

Mental Models · Risk
Point of No Return

The moment after which reversing a course becomes impossible or extremely costly.

Mental Models · Reasoning
Poisoning the Well

Discrediting a source or person before they make their argument.

Perverse Incentives · Corporate
Politburo Reporting

Subordinates report what leaders want to hear, not what's true.

Mental Models · Learning
Pollyanna Principle

We tend to remember pleasant information more accurately than unpleasant information.

Neuroscience · Stress
Polyvagal Theory

Autonomic nervous system shapes safety, threat, and connection responses.

Neuroscience · Attention
Pomodoro / Time-boxing

Short focused intervals + breaks outperform marathon sessions.

Perverse Incentives · Government
Pork Barrel Politics

Legislators rewarded for delivering local benefits financed by national costs.

Fallacy · Causation
Post Hoc Ergo Propter Hoc

B followed A, therefore A caused B.

Mental Models · Probability
Power Law

A relationship where a small number of inputs account for most outputs.

Mental Models · Probability
Power Laws

A small number of items account for most of the value.

Mental Models · Decision
Pre-Mortem

Imagine the project failed; explain why.

Neuroscience · Cognition
Prediction Machine (Friston)

The brain is a prediction engine; surprise is the signal to update.

Mental Models · Decision
Premortem + Postmortem Pair

Imagine the failure beforehand; investigate it afterward.

Bias · Decision
Present Bias

Today's discomfort outweighs tomorrow's reward.

Perverse Incentives · Universal Pattern
Principal-Agent Problem

Agents act in their own interest, not the principal's.

Mental Models · Strategy
Prisoner's Dilemma

Individual rationality produces collective irrationality.

Bias · Belief
Pro-Innovation Bias

Assuming new technology will be adopted faster and more usefully than it will.

Mental Models · Probability
Probabilistic Thinking

Reason in distributions, not in points.

Mental Models · Risk
Probability Neglect

We ignore probability when outcomes are emotionally charged.

Perverse Incentives · Government
Procurement Race to the Bottom

Lowest-bid procurement produces lowest-quality outcomes.

AI Incentives · Risk
Productivity Mirage

Individual speed gains hide collective quality decline.

Bias · Self
Projection Bias

We assume our current state will persist into the future.

Perverse Incentives · Corporate
Promote-to-Lose Trap

Promoting your best individual contributor to manager loses you both.

Perverse Incentives · Corporate
Promotion Inflation in Title Economies

Titles substitute for raises; senior titles inflate, value doesn't.

AI Incentives · Economics
Prompt Caching

Cache common prompt prefixes to reduce cost and latency.

AI Incentives · Risk
Prompt Injection

Malicious instructions hidden in user input or retrieved content.

Mental Models · Decision
Prospect Theory

People value gains and losses asymmetrically, and judge relative to a reference point.

Neuroscience · Social Brain
Psychological Safety

The shared belief that the team is safe for interpersonal risk-taking.

Neuroscience · Motivation
Purpose

Meaning beyond the task multiplies motivation.

Bias · Social
Pygmalion Effect

High expectations produce higher performance.

Perverse Incentives · Corporate
Quarterly Earnings Culture

90-day reporting windows shape multi-year strategies.

Perverse Incentives · Education
Ranking Game Inflation

Universities optimize for ranking metrics rather than education quality.

Bias · Decision
Reactance

Tell someone they must, and they'd often rather not.

Bias · Memory
Recency Bias

Overweighting whatever just happened.

Bias · Social
Reciprocity Bias

When someone does us a favor, we feel pressure to return it.

Perverse Incentives · AI
Recommender System Radicalization

Recommenders optimizing engagement produce radicalization as a byproduct.

Fallacy · Relevance
Red Herring

Introducing an irrelevant topic to distract from the issue.

Mental Models · Strategy
Red Team

A group assigned to challenge plans and find weaknesses.

Mental Models · Decision
Red Teaming

Adversarial review by an internal opposition.

AI Incentives · Risk
Red-Teaming AI

Adversarial testing of AI systems.

Mental Models · Markets
Reflexivity

Beliefs about reality shape the reality.

Mental Models · Probability
Regression to the Mean

Extreme outcomes tend to be followed by more average ones.

Mental Models · Decision
Regret Minimization

Choose the option you'll regret least at 80.

Perverse Incentives · Government
Regulatory Capture

Agencies meant to regulate an industry get captured by it.

Fallacy · Definition
Reification Fallacy

Treating an abstraction as if it were a concrete thing.

Mental Models · Probability
Representativeness Heuristic

We judge probability by how similar an event is to a prototype.

AI Incentives · Adoption
Resistance Mapping

Pre-deployment analysis of who loses what.

AI Incentives · Talent
Reskilling vs. Replacing

Investing in workforce transition vs. workforce change.

Bias · Self
Restraint Bias

Overestimating our ability to control future impulses.

AI Incentives · Workflow
Retrieval-Augmented Generation (RAG)

Generate based on retrieved documents, not just trained weights.

Mental Models · Decision
Reversible vs. Irreversible Decisions

Two-way doors vs. one-way doors.

Mental Models · Probability
Reversion to the Mean

Extreme results tend to be followed by less extreme ones.

Neuroscience · Reward
Reward Frequency

Frequency and variability of reward shape behavior strongly.

AI Incentives · Alignment
Reward Hacking

Maximizing the reward signal in unintended ways.

Neuroscience · Reward
Reward Prediction Error

The brain rewards the gap between expectation and outcome.

Mental Models · Risk
Risk Compensation

People take more risks when they feel safer.

Mental Models · Risk
Risk vs. Uncertainty

Risk has known probabilities. Uncertainty doesn't.

AI Incentives · Alignment
RLHF

Reinforcement learning from human feedback.

Bias · Memory
Rosy Retrospection

We remember the past as better than it was.

Perverse Incentives · Corporate
RTO Optics Theater

Return-to-office mandated for visibility, not productivity.

Mental Models · Probability
Rule of 72

A quick way to estimate how long it takes an investment to double at a given growth rate.

Mental Models · Markets
S-Curve

Technologies grow slowly, then explode, then plateau.

Neuroscience · Attention
Salience Network

Brain system that decides what's important right now.

AI Incentives · Adoption
Sandbagging Adoption

Teams under-reporting AI capability to protect comp or status.

Mental Models · Decision
Satisficing

Choosing a good-enough option rather than optimizing for the best.

Mental Models · Social
Sayre's Law

In any dispute, the intensity of feeling is inversely proportional to the value of the stakes.

Bias · Decision
Scarcity Bias

Rare things feel more valuable, regardless of actual value.

Neuroscience · Social Brain
SCARF Model (Rock)

Status, Certainty, Autonomy, Relatedness, Fairness — drivers of social brain response.

Mental Models · Strategy
Schelling Point

The default coordination outcome people converge on without communicating.

Mental Models · Systems
Scope Creep

Projects gradually expand beyond their original goals.

Mental Models · Decision
Second-Order Thinking

Ask 'and then what?' — twice.

Mental Models · Probability
Selection Bias

Your sample isn't random.

Neuroscience · Motivation
Self-Determination Theory

Humans need autonomy, competence, and relatedness.

Neuroscience · Motivation
Self-Efficacy

Belief in one's ability to execute.

Mental Models · Social
Self-Fulfilling Prophecy

A belief that becomes true because people act as if it is true.

Bias · Self
Self-Serving Bias

Wins are ours; losses are circumstantial.

Bias · Belief
Semmelweis Reflex

Reflexively rejecting evidence that contradicts established norms.

Neuroscience · Habit
Sensitization

Repeated stimuli sometimes produce stronger response.

Perverse Incentives · Corporate
Severance Asymmetry

Executives leave well; employees leave thin.

AI Incentives · Adoption
Shadow AI

Employees using unauthorized AI tools to get work done.

Perverse Incentives · Finance
Share Buybacks Over Reinvestment

EPS-targeted comp incentivizes buybacks even when reinvestment yields more.

Mental Models · Systems
Shifting Baseline

What is considered normal changes gradually, making degradation invisible.

Mental Models · Systems
Shirky's Principle

Institutions will try to preserve the problem to which they are the solution.

Mental Models · Systems
Signal-to-Noise Ratio

The ratio of useful information to irrelevant information.

Mental Models · Probability
Simpson's Paradox

A trend appears in different groups but disappears or reverses when groups are combined.

Fallacy · Causation
Single Cause Fallacy

Assuming one cause where many are at play.

Mental Models · Learning
Single Loop vs. Double Loop Learning

Single-loop fixes errors; double-loop questions the assumptions producing them.

AI Incentives · Risk
Skill Atrophy

Foundational skills erode through AI offloading.

Mental Models · Risk
Skin in the Game

Decision-makers should bear the consequences of their decisions.

Neuroscience · Memory
Sleep Consolidation

Memory and skill consolidate during sleep.

Fallacy · Causation
Slippery Slope

A small step inevitably leads to extreme consequences.

Fallacy · Causation
Slippery Slope (cause/effect form)

Small step → catastrophic outcome, without the intermediate causal links.

Mental Models · Social
Social Contagion

Ideas, behaviors, and attitudes spread through social networks.

Neuroscience · Social Brain
Social Pain

Social rejection activates the same brain regions as physical pain.

Bias · Social
Social Proof

We look to others to decide what's correct.

Mental Models · Reasoning
Sorites Paradox

Small changes that are not noticeable can add up to a significant change.

Neuroscience · Memory
Spaced Repetition

Spread learning over time for stronger retention.

Fallacy · Relevance
Special Pleading

Exempting a case from a rule for no principled reason.

AI Incentives · Alignment
Specification Gaming

The model achieves the goal as stated, not as intended.

Perverse Incentives · Government
Speed Limit Quota

Police evaluated on ticket counts produce more tickets, not safer roads.

Mental Models · Systems
Spillover Effect

Effects of an intervention spread to other areas beyond the intended target.

Bias · Self
Spotlight Effect

We assume others notice us more than they do.

Perverse Incentives · Corporate
Stack Ranking

Forced curve performance management produces internal sabotage.

Perverse Incentives · Corporate
Stack-Rank Calibration Drift

Manager calibration produces predictable distortions over years.

Mental Models · Social
Status Games

Much of human behavior is positioning for status.

Bias · Decision
Status Quo Bias

Preference for what already exists, simply because it exists.

Neuroscience · Decision
Status Quo Bias (Neural)

Brain weights existing state heavily.

Neuroscience · Social Brain
Status Threat

Threats to status trigger the same neural alarm as physical threats.

AI Incentives · Adoption
Status Threat (AI)

AI doesn't just replace tasks — it threatens identities.

Mental Models · Learning
Steel-Manning (Argumentation)

Restate the opposing view at its strongest before responding.

Fallacy · Relevance
Steelman (the cure)

Restating the strongest version of your opponent's argument before responding.

Mental Models · Systems
Stock and Flow

Stocks are accumulations; flows are rates of change that affect them.

Mental Models · Strategy
Strategy Map

Causal chain from inputs to outputs to outcomes to impact.

Fallacy · Relevance
Strawman

Misrepresenting an argument to make it easier to attack.

Mental Models · Reasoning
Streetlight Effect

Looking where the light is, not where the keys are.

Mental Models · Learning
Strong Opinions, Loosely Held

Have a thesis. Update it on evidence.

Perverse Incentives · Technology
Subscription Trap Pricing

Easy to start, hard to leave.

Mental Models · Decision
Sunk Cost

Past investment should not influence future decisions.

Mental Models · Decision
Sunk Cost (model form)

Past investment is irrelevant to future decisions.

Bias · Decision
Sunk Cost Fallacy

Throwing more in because we already threw a lot in.

Bias · Belief
Survivorship Bias

Studying winners while ignoring identical losers.

Fallacy · Statistical
Survivorship Bias (as a fallacy)

Generalizing from winners while ignoring identical losers.

Perverse Incentives · Corporate
Survivorship-Driven Best Practices

Strategy copied from survivors ignores identical strategies that died.

Mental Models · Systems
Swiss Cheese Model

Accidents occur when multiple layers of defenses fail simultaneously.

Mental Models · Economics
Switching Costs

What does it cost to leave?

AI Incentives · Workflow
Synthetic Data

Generated training data that mimics real data.

Neuroscience · Decision
System 1 vs. System 2

Fast intuitive vs. slow deliberative thinking.

Bias · Belief
System Justification

We defend existing systems even when they harm us.

Mental Models · Systems
Systems Thinking

Behavior emerges from structure, not from individuals.

Mental Models · Learning
Tacit Knowledge

Knowledge that is hard to transfer because it is personal and experience-based.

Mental Models · Decision
Target Effect

Goals become the focus, sometimes at the expense of the underlying purpose.

Perverse Incentives · Education
Teaching to the Test

Schools evaluated on test scores teach to the test.

Fallacy · Statistical
Texas Sharpshooter

Drawing a target around wherever the bullets landed.

Mental Models · Reasoning
Texas Sharpshooter Fallacy

Cherry-picking data to fit a pattern after the fact.

Mental Models · Social
Theory of Mind

Modeling what others think, want, and will do.

Neuroscience · Social Brain
Theory of Mind (Human)

Modeling what others think, feel, and intend.

Mental Models · Social
Third Story

A neutral account of a conflict that both sides can agree on.

Fallacy · Ambiguity
Thought-Terminating Cliché

A phrase that ends thought rather than advancing it.

Neuroscience · Stress
Threat Response

Under threat, the prefrontal cortex goes offline.

Mental Models · Decision
Time Bias

Our decisions are influenced by when events occur or when we evaluate them.

Mental Models · Strategy
Tit for Tat

Start cooperative; copy your counterpart's last move thereafter.

AI Incentives · Workflow
Tool Use

Models calling external functions and APIs.

AI Incentives · Economics
Total Cost of Ownership (AI)

Real cost includes data, ops, monitoring, governance, training.

Mental Models · Systems
Tragedy of the Commons

Shared resources get over-consumed by individual rational actors.

Perverse Incentives · Sports
Trophy Inflation

Coaches paid on titles take more risk; coaches paid on attendance take less.

AI Incentives · Trust
Trust Calibration

Matching trust in a system to its actual reliability.

Fallacy · Relevance
Tu Quoque (Whataboutism)

Deflecting by pointing to the other side doing it too.

Fallacy · Relevance
Two Wrongs Make a Right

Justifying a wrong because someone else also did wrong.

Mental Models · Systems
Two-Pizza Teams

Teams small enough to be fed by two pizzas.

Perverse Incentives · Universal Pattern
Two-Tier Compensation Quiet Quitting

New hires paid more than tenure; tenure responds rationally.

Mental Models · Probability
Type I vs. Type II Errors

False positives vs. false negatives.

Mental Models · Social
Tyranny of the Minority

A small group can dominate when the majority is silent or divided.

Mental Models · Social
Ultimate Attribution Error

Negative behavior of outgroup members is attributed to character; positive behavior to situational factors.

Mental Models · Decision
Ulysses Contract

Binding yourself now to avoid future temptation.

Mental Models · Systems
Unintended Consequences

Actions have effects that were not planned or anticipated.

Perverse Incentives · Corporate
Vanity Metrics

Metrics that look good without indicating business value.

AI Incentives · Workflow
Vector Database

Database optimized for high-dimensional similarity search.

Mental Models · Social
Veil of Ignorance

Design rules without knowing where you'll land under them.

AI Incentives · Strategy
Vendor Lock-In Risk

Concentration risk on a single AI provider.

Mental Models · Strategy
Vision-Strategy-Tactics

Where, how, what — in that order.

Mental Models · Learning
Von Restorff Effect

Items that stand out are more likely to be remembered.

Perverse Incentives · Government
Voter Apathy as Equilibrium

Concentrated benefits + diffused costs = the few win against the many.

Neuroscience · Social Brain
Vulnerability-Based Trust

Trust deepens when people can admit weakness without penalty.

Perverse Incentives · Universal Pattern
Whistleblower Cost

Reporting wrongdoing is personally costly; staying silent is personally rational.

Mental Models · Social
Wisdom of Crowds

Aggregated independent judgments can be more accurate than individual experts.

Mental Models · Decision
Working Backwards

Start from the customer outcome and reason backward to today.

Neuroscience · Cognition
Working Memory

Limited capacity holding-tank for current information.

Bias · Probability
Zero-Risk Bias

We prefer eliminating a small risk completely over reducing a larger one partially.

Mental Models · Strategy
Zero-Sum Game

One party's gain is exactly another party's loss.