modelthinking
To create something original, we must first surrender our mediocre perception.
Bruno De Campos • River Through the Heart
that in deciding how much they will consume households seem to care mainly about their wealth, not about the reward for postponing consumption.
Michael Pettis • The Great Rebalancing
His idea was straightforward: people’s choices are based not on dollar values but on the psychological values of outcomes, their utilities.
Daniel Kahneman • Thinking, Fast and Slow
in the policeman’s syllogism (1.5), whether the plausibility for A increases by a large amount, raising it almost to certainty; or only a negligibly small amount, making the data B almost irrelevant? The object of the present work is to develop the mathematical theory which answers such questions, in the greatest depth and generality now possible.
G. Larry Bretthorst • Probability Theory
Investments & inventory: When a firm buys INR 300 machine, it’s basically an inflow (or income) for another firm which sells it. But for the buying firm, it’s not a cost. It’s an investment. It becomes a cost very slowly as machine depreciates. So for the two firms together, decision of a firm to buy a machine from another firm becomes profit.
... See moremaneesh dangi • The Profit Equation of a Macro Investor
That is a major omission! If the slowdown in TFP growth can be explained by ideas getting harder to find, why did growth hit a brick wall in 1973 as opposed to slowly decaying as soon as ideas became harder to find?
Well, one question to ask might be “Which factors contributed to TFP growth in the last good decades, the 1950s and 1960s, and when
... See morePacky McCormick • What Do You Do With an Idea?
The more and better tools, the bigger and harder challenges builders can address with them.
People are smart. We’ve solved most of the challenges that are possible to solve given the tools currently at our disposal, give or take a little given the fact that we’re also good at getting in our own way. So we build new tools to tackle new challenges.
T
... See moreBetter Tools, Bigger Companies
think the correct way to solve problems and to understand what's going on is really bottom up not top down by which I mean um actually open-minded inquiry and observation of all kinds of things okay
Chris Williamson • Hidden Psychology of the World’s Best Advertising - Rory Sutherland
Taste is how a business differentiates itself when attention is scarce and choice is abundant. Knowing what to make is just as important as the ability to make it.