Mental models are important to understand the world. The more mental models you understand on a deep level the more you can make sense of the environment and the people around you.
A mental model is a framework based on rationale, fundamental knowledge and is rooted in truth.
Warren Buffett’s partner, Charlie Munger, has memorised 90 mental models. Munger is, according to Buffett, the smartest person he knows.
Munger applies these mental models to business and life. They have helped him and Buffett become billionaires.
The more mental models you understand the better your decisions will be.
Mental models also apply to influence and persuasion too. Human behaviour is coded in mental models.
The halo effect
The scarcity effect
The availability bias