How It Works

How the World Actually Operates

How the World Works

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Biases and Behavior

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Mental Models

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Systems and Incentives

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Critical Thinking

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Decision Making

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Game Theory

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Opportunity Cost

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Absurd Behavior Is Usually About Incentives

When something looks absurd, put what people say next to what they actually get paid for. A fictional Venetian wine merchant story shows how to do it, then three classic misaligned-incentive cases (Goodhart, the cobra effect, Wells Fargo) and a four-step routine you can run on your own daily observations.

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See Where the Real Power Goes

A field guide to thirteen kinds of power inside an organization, from final sign-off and information control to expertise and the right to bypass process, with concrete workplace examples.

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Information Asymmetry: How to Read Any Deal in Three Questions

Information asymmetry is the default state of nearly every transaction, and most of the money in a market is made from that gap. Covers adverse selection, the lemon market, signaling versus screening, why brand names and expensive store fronts work as signals, and a four-step audit you can run before your next negotiation or investment.