Farnam Street
Mastering the best of what other people have already figured out
In economics, comparative advantage refers to the ability of a person or nation to produce a good or service at a lower opportunity cost than another person (or nation). This is why trade can create …
Hindsight bias occurs when we look backward in time and see events are more predictable than they were at the time a decision was made. This bias, also known as the “knew-it-all-along …
In this video, Malcolm Gladwell speaks on the challenge of hiring in the modern world. One of those challenges, the mis-match problem, happens when we use criteria to judge someone for a job that is …
Reading The Invisible Hook really got me hooked on learning more about pirates. How do pirates decide what ransom to ask for? The answer, from an interview with an actual pirate, might surprise you. …
“The only proven way to raise your odds of making a good decision is to learn to use a good decision-making process—one that can get you the best solution with a minimal loss of time, energy, …
Supply and demand is a foundational economic mental model. Understanding it is instrumental in building a better picture of how the world works. *** The law of demand states that there is an inverse …