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What are “Mental Models”?

Updated: December 19, 2012March 12, 2010Filed under: Systems Thinking196 Comments

Editor’s note: This is part one of a two part series on Systems Thinking and mental models

In writing and teaching people about Systems Thinking, we often refer to “mental models”.  For some people, this comes as a bit of a surprise, because the context usually involves building models with the iThink or STELLA software.  They don’t expect us to start talking metaphysically about thinking.  “Is this about philosophy or modeling software?” they may wonder.  The software is actually a tool to help construct, simulate and communicate mental models.

Let’s define the term model: A model is an abstraction or simplification of a system.  Models can assume many different forms – from a model volcano in a high school science fair to a sophisticated astrophysical model simulated using a supercomputer.  Models are simplified representations of a part of reality that we want to learn more about.  George Box stated: “Essentially, all models are wrong, but some are useful”.  They are wrong because they are simplifications and they can be useful because we can learn from them.

So, what is a “mental model”?  A mental model is a model that is constructed and simulated within a conscious mind.  To be “conscious” is to be aware of the world around you and yourself in relation to the world.  Let’s take a moment to think about how this process works operationally.

Thinking about trees

Imagine that you are standing outside, looking at a tree.  What happens?  The lenses in your eyes focus light photons onto the retinas.  The photosensitive cells in your retinas respond by sending neural impulses to your brain.  Your brain processes these signals and forms an image of the tree inside your mind.

So at this point, we’ve only addressed the mechanisms by which you perceive the tree.  We have not addressed understanding what a tree is or considered changes over time.   We are dealing with visual information only.  There is nothing within this information that tells you what a tree actually is.

What makes the image of a tree in your minds click as an actual tree that exists right there in front of you?  This is where mental models kick in and you start to think about the tree.  The tree is actually a concept of something that exists in physical reality.  The “tree concept” is a model.  Understanding the concept of a tree requires more information than is available through sensory experience alone.  It’s built on past experiences and knowledge.

A tree is a plant.  It is a living thing that grows and changes appearance over time, often with the seasons.  Trees have root systems.  Trees use leaves for photosynthesis.  Wood comes from trees.  I can state these facts confidently because I have memories and knowledge of trees contained within my mental models.  Mental models contain knowledge and help us create new knowledge.

 

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Systems Thinking
  • crisis
  • market dynamics
  • mental model
  • price
196 Comments

Modeling the Economic Crisis

Updated: March 11, 2010March 8, 2010Filed under: Systems Thinking809 Comments

I’m often asked by customers that are new to Systems Thinking, “How can this approach add value to conceptualizing and understanding common, everyday issues?”  The issues range from business design to environmental concerns to macroeconomic dynamics.  In response to this question, I can tell you from my personal experience, nothing beats seeing a skilled practitioner use …

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Systems Thinking
  • crisis
  • economics
  • housing
  • paradox of thrift
  • video
809 Comments

Modeling Bass Diffusion with Rivalry

Updated: December 19, 2017February 18, 2010Filed under: STELLA & iThink4 Comments

This is the last of a three-part series on the Limits to Growth Archetype.  The first part can be accessed here and the second part here.

Last time, we explored the effects of Type 1 rivalry (rivalry between different companies in a developing market) on the Bass diffusion model by replicating the model structure.  This part will generalize this structure and add Type 2 rivalry (customers switching between brands).

Bass Diffusion with Type 1 Rivalry

To model the general case of an emerging market with multiple competitors, we can return to the original single company case and use arrays to add additional companies.  In this case, everything except Potential Customers needs to be arrayed, as shown below (and available by clicking here).

image

For this example, three companies will be competing for the pool of Potential Customers.  Each array has one-dimension, named Company, and that dimension has three elements, named A, B, and C, one for each company.  Although each different parameter, wom multiplier, fraction gained per $K, and marketing spend in $K, can be separately specified for each company, all three companies use the same values initially.  All three companies, however, do not enter the market at the same time.  Company A enters the market at the start of the simulation, company B enters six months later, and company C enters six months after that.

Recall that the marketing spend is the trigger for a company to start gaining customers.  Thus, the staggered market entrance can be modeled with the following equation for marketing spend in $K:

STEP(10, STARTTIME + (ARRAYIDX() – 1)*6)

The STEP function is used to start the marketing spend for each company at the desired time.  The ARRAYIDX function returns the integer index of the array element, so it will be 1 for company A, 2 for company B, and 3 for company C.  Thus, the offsets from the start of the simulation for the launch of each company’s marketing campaign are 0, 6, and 12, respectively.

This leads to the following behavior:

image

Note that under these circumstances, the first company to enter the market retains a leadership position.  However, companies B and C could anticipate this and market more strongly.  What if company B spent 50% more and company C spent 100% more than company A on marketing that is similarly effective?  This could be modeling by once again changing the equation for marketing spend in $K, this time to:

STEP(10 + (ARRAYIDX() – 1)*5, STARTTIME + (ARRAYIDX() – 1)*6)

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STELLA & iThink
  • archetypes
  • arrays
  • Bass diffusion
  • iThink/STELLA
  • market dynamics
  • Systems Thinking
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