A mental model is a sort of thinking process applied to the real world, which is usually simple yet powerful to solve complex problems. In short, mental models are simple and yet effective solutions or guiding principles to complex real-life scenarios. Therefore, the central point is those complex problems can be solved with simple solutions that, in most cases, work much better than more complex solutions.
Heuristics
Bounded Rationality
Second-Order Thinking
Lateral Thinking
Moonshot Thinking
Biases
Dunning-Kruger Effect
Occam’s Razor
Mandela Effect
Crowding-Out Effect
Bandwagon Effect
Straw Man Fallacy
Gambler’s Fallacy
Base Rate Fallacy
Pygmalion Effect
Barnum Effect
Bottom-Dollar Effect
Bye-Now Effect
Butterfly Effect
IKEA Effect
Halo Effect
Ringelmann Effect
Law of Unintended Consequences
House Money
Snowball Effect
Hawthorne Effect
Read Next: Biases, Bounded Rationality, Mandela Effect, Dunning-Kruger
Read Also: Heuristics, Biases, Business Strategy, Business Models.