A mental model is an explanation of a thought process about how something works in the real world. Mental models help shape our behaviour and define our approach to solving problems (akin to a personal algorithm) and carrying out tasks. Mental models have been studied by cognitive scientists as part of efforts to understand how humans know, perceive, make decisions, and construct behavior in a variety of environments. Charles Munger provides a concept of “Elementary, Worldly Wisdom” which consists of a set of mental models framed as a solving problems of business, finance and investing. According to Munger, only 80 or 90 important models will carry about 90% of the freight in making you a worldly-wise person.
Articles on Ecological Systems as a Mental Model for Investing
“Matching Social and Ecological Systems in Complex Ocean Fisheries” by James A. Wilson. Ecology and Society 11(1): 9.
“Where Busy Bees and Business Converge: The striking similarities between ecological and organizational networks” based on the Research of Serguei Saavedra, Brian Uzzi And Felix Reed-Tsochas. 2011. Kellogg School of Management