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Mental Models

Exploiting Assumptions

Rethinking the equilibrium or exploiting the assumptions that others rely on can provide a competitive advantage. By shifting away from expected patterns, you can make yourself unpredictable and resilient.

THE IDEA

Exploiting Assumptions

If you become too dependent on a particular equilibrium to perform well, you make yourself vulnerable to being thrown off by changing circumstances. Being able to function in a wider range of conditions makes you more versatile and flexible. It’s also useful to have homeostatic processes in place to enable you to get back to what you find optimal after any sort of disruption. In competitive situations, those who flounder when they’re thrown off their equilibrium by something unexpected without having the mechanisms to reorient often suffer. Sometimes you can transcend your abilities by thinking about what an opponent expects or considers normal. You can also achieve more by rethinking what the equilibrium is in your field.

Take the case of card tricks. When an audience watches a magician perform a trick, they start with certain assumptions and expectations. The same is true for professional magicians watching other magicians perform a trick. Their equilibrium consists of a set of assumptions that enables them to identify how a trick works by watching it or to reverse-engineer it from the end point. Professional magic includes all sorts of conventions and assumptions. One unspoken assumption is that a magician performing a particular named trick does it the same way every time, using the same technique. To figure out how the trick works, you need to identify that technique.

One American magician, Ralph Hull, managed to invent a card trick no one—not even the smartest expert magicians—could fathom by rethinking the equilibrium of card magic. He called it “The Tuned Deck.” Hull would show the audience a pack of cards, claiming he could sense the location of any card in the deck by detecting minute vibrations. He would then allow an audience member to pick a card, look at it, then put it back into the pack. Hull moved the cards around, shuffling them one way and another, then pulled out the correct card. Its unique vibrations revealed its location, or so he said.

No one managed to figure out how he did the trick, despite expert magicians watching him perform it again and again. Only at the end of his life did Hull reveal the secret: The Tuned Deck didn’t have one, single secret. Hull would use a mixture of different techniques, moving between them depending on whether an audience seemed to be twigging what he was doing. If a professional magician were watching, he might use a few different consecutive methods until he threw them off the scent. The real trick was that Hull shifted away from the equilibrium assumption that a trick with a name had to be done the same way every time.

When to use it

  • A business competing in a mature market can disrupt by breaking industry norms that competitors assume are fixed.

  • A negotiator can gain an edge by anticipating the other party's expectations and deliberately acting outside them.

  • A product designer can innovate by questioning the unspoken assumptions users have about how a tool should work.

FROM THEORY TO EVERYDAY LIFE

In practice

01

Ralph Hull's Tuned Deck

Magician Ralph Hull invented a card trick called 'The Tuned Deck' that fooled even expert magicians. He did so by breaking the core assumption that a named trick uses a single, fixed method. Instead, Hull employed a mix of different techniques, switching between them on the fly to stay unpredictable, exploiting the audience's expectations of a stable equilibrium.

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A MOMENT TO REFLECT

Put it to work.

  1. What equilibrium assumptions do you rely on in your field, and how could an opponent exploit them?

  2. How can you build homeostatic mechanisms to recover quickly after being thrown off balance?

  3. Where might your current strategy be too rigid, and how could you introduce adaptive flexibility?

CONTINUE THE CONVERSATION

Source texts

  • The Great Mental Models Volume 3 Systems and Mathematics
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