Denkmodell
7 cards from across every topic, each citing a source. Tap one to open it in the feed.
- Don't trust advice from someone who loses nothing if wrong.
Skin in the game means whoever decides bears the consequences. Babylon's Code of Hammurabi had builders executed if …
- New money doesn't enrich everyone equally. It reaches some first.
Richard Cantillon described in the 18th century: newly created money first reaches banks, the state and the wealthy …
- The cheapest price is often just the one someone else pays.
Externalities are costs or benefits that land on bystanders. A factory skips filters and residents get the dirt; the …
- The insured drive more recklessly. So do banks.
Moral hazard describes how people take more risk when someone else bears the loss. With full coverage you park tighter …
- Trade pays off even if you're better at everything.
David Ricardo showed in 1817: even if Portugal makes both wine and cloth more cheaply than England, both gain if each …
- Why everyone acts sensibly and everyone still loses.
A pasture owned by all: each farmer gains fully from one more cow, while the damage from overgrazing is shared by …
- Your estate agent wants to sell. Not necessarily at the best price.
The principal-agent problem arises when you let someone act for you who has their own interests and more knowledge. The …