A note from Daniel

Irrational human behavior is a direct contributor to the life cycle of a bubble. Thus, they are partly a social phenomenon, with analogous applications outside of economics. Think of fashion trends: Every generation has to contend with a new look or style of clothing that appears out of nowhere and that, within months, everyone seems to be wearing. Then, one day, somehow that trend is no longer cool, and we're stuck with high-priced items that we no longer want to wear.

Daniel The Great Mental Models, Volume 4, page 190 · December 31, 2024 Save to shelf
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