Chapter 2 Mental Models Flashcards
explain the tragedy of the commons
a class of unintended consequences that arise when a lot of people choose what they think is best for them individually, but the sum total of the decisions creates a worse outcome for everyone.
What is Campbell’s Law?
When you try to incentivize behavior by setting a measurable target, people focus primarily on achieving that measure, often in ways you didn’t intend. Most importantly, their focus on the measure may not correlate to the behavior you hoped to promote.
What is the observer effect?
it is when everyone acts on their best behaviour when the boss is in town, and how people change their behaviour as they become less anonymous. in anonymous surveys etc.
explain short terminism?
this is when people don’t plan for the long term and suffer as a result, eventually they are left behind by their competitors
Explain The Principle Reciprocity?
our fundamental need and obligation to repay or return favours, so essentially perform certain actions for people who gave us a certain service first. In short, we basically feel obligated to treat others the way they treat us,
what is the law of Consistency and commitment?
people like to be consistent with the things they have previously said or done. We want to be ourselves and to be seen as consistent. once people have taken one step with you, as small as it is, they’re far more likely to perform another step. People want to feel good about their decisions, and they want to feel consistent, so when they make a decision they try to follow through because it basically helps with their self-image and their social image.
what is social proof?
people’s tendency to want and choose products and solutions that other people like, other people recommend, or other people promote.
what is the principle of Authority?
Our tendency to believe and feel more comfortable with authoritative figures or experts.
explain the law of Liking?
We like people who are similar to us and we tend to like people who like us
explain Scarcity?
When something is in limited supply, we want more of it. It’s just as simple as that. Essentially, when there’s less availability of something, it’s value and our need for it suddenly tends to go up. The more limited something is, the more it’s valued. The perceived value goes up.
what’s the principle of Unity?
our need to be part of a group or a community or a family. It helps us relate to others. It helps us feel connected, feel a part of something bigger than ourselves, we want to be with people who share common beliefs, needs, or common characteristics.
Explain Hofstaders Law
it always takes longer than you expect, even when you consider that things take longer than you expect
explain perfect is the enemy of good
a less than perfect solution is often good enough to keep things optimally moving forward. It applies in a variety of contexts like - waiting until you are sure you are making the perfect decision until you have crafted a flawless product etc.
explain loss aversion
we get more displeasure from losing then we gain in pleasure from winning - we are more inclined to avoid losses
what is the concord fallacy?
throwing good money away on something when it is better to just walk away
