Mental Models and the 4P Types of Knowledge
Mental Models can help you be less wrong
A Mental Model is a simplified representation of a complex system, concept, or phenomenon, helping us in understanding and decision-making.
“Mental models are a tool set that can help you be wrong less. They are a collection of concepts that help you more effectively navigate our complex world.” — Gabriel Weinberg & Lauren McCann (Super Thinking)
John Vervaeke proposed four types of knowledge that are relevant for human flourishing: propositional, procedural, perspectival, and participatory.
So, which of the four types are Knowledge in Mental Models ?
Take a famous example, the Pareto Principle:
For many events, roughly 80% of the effects come from 20% of the causes.
- Vilfredo Pareto -
At first glance, this type of knowledge is propositional. However, its implication which is about a relationship between causes and effects can also be used as a heuristic or guideline for making decisions about where to focus efforts. In this way, it also contains implicit procedural knowledge.
The principle itself can be seen as an outcome emerging from the numerous interactions of agents in a dynamic environment, for example, businesses competing for market share.
While it does not constitute participatory Knowledge, it is related to it as it involves the creation of meaning and value with others in a shared environment, as exemplified by the market share example.
Conclusion: The Pareto Principle is a form of propositional Knowledge, but it can influence or be influenced by other types of Knowledge.
The same holds true for many other Mental Models, including:
"The Map is not the Territory"
"Compound Interest"
"Tragedy of the Commons"
"Everything should be as simple as it can be, but not simpler" (Einstein)
"Intelligent people make decisions based on opportunity costs" (Munger)
Mental models are usually distilled from knowledge gained through experience and are applicable to multiple disciplines. In essence, they encapsulate Wisdom.
Using a Mental Model over and over makes it a habit