Opportunity cost is the value of the best alternative that you miss out on as a result of choosing a different option. For example, if a person chose to invest in a certain venture, their opportunity cost is the money they could have made by investing in a different venture, and namely in the …
False equivalence is a logical fallacy that occurs when someone incorrectly asserts that two or more things are equivalent, simply because they share some characteristics, despite the fact that there are also notable differences between them. For example, a false equivalence is saying that cats and dogs are the same animal, since they’re both …
The verbatim effect is a cognitive bias that causes people to remember the gist of information, which is its general meaning, better than they remember its exact form, which is the way the information was presented and the minor details that it involved. For example, when people read a long text, they’re more likely …
Memento mori is a Latin phrase that means “remember that you will die”. It is meant to remind you of your own mortality, and of the brevity and fragility of human life. ‘Memento mori’ has been mentioned as an important principle by many people throughout history, and implementing it in your own life can …
Jumping to conclusions is a phenomenon where people reach a conclusion prematurely, on the basis of insufficient information. For example, a person jumping to conclusions might assume that someone they just met is angry at them, simply because that person wasn’t smiling at them while they talked, even though there are many alternative explanations …
The fear of missing out (FOMO) occurs when people worry that they’re missing out or will miss out on a seemingly rewarding opportunity. Most often, FOMO has to do with rewarding opportunities that other people—especially ones in a person’s social circle—are a part of. A common example of FOMO is being worried about missing …
The contrast effect is a cognitive bias that distorts our perception of something when we compare it to something else, by enhancing the differences between the things being compared. For example, the contrast effect can make a sweet drink taste bland if you drink it immediately after drinking something sweeter, and can make an …
Carpe diem is a Latin phrase that means “seize the day”. It encourages people to focus on the present, appreciate the value of every moment in life, and avoid postponing things unnecessarily, because every life eventually comes to an end. For example, the principle of ‘carpe diem’ suggests that if there’s an event that …
A slippery slope is an argument that suggests that a certain initial action could lead to a chain of events with a relatively extreme result, or that if we treat one case a certain way then we will have to treat more extreme cases the same way too. For example, a slippery slope argument …
The economic man (or homo economicus) is a conceptualization of people as ideal decision-making machines, with flawless rationality, unlimited cognitive capacity, perfect access to information, and a narrow range of consistent, self-interested goals. Roughly speaking, this means that the homo economicus can be seen as someone who only cares about maximizing things such as …