Veblen goods are products that become more desirable as their prices rise, because high cost signals exclusivity, quality, and status. While often associated with luxury brands like Rolex, the concept also applies outside luxury, as shown by Beckman Instruments, which boosted sales by raising prices to signal quality. By elevating pricing, signaling excellence at every touchpoint, and controlling distribution, brands can leverage the Veblen goods effect to increase demand.

Second-Order Thinking is the ability to look beyond immediate results and consider the ripple effects of your decisions. Netflix’s controversial split of its DVD and streaming services in 2011 hurt in the short term but positioned the company for long-term dominance. Asking “And then what?” repeatedly is a powerful way to make more strategic choices.

First Principles Thinking is a method of solving problems by breaking them down to their core truths, then rebuilding from the ground up. It helps you move beyond assumptions and conventional wisdom to find truly original solutions. Companies like Dyson and Liquid Death used it to redefine their categories by rethinking from scratch rather than tweaking what already existed.

MECE stands for “Mutually Exclusive, Collectively Exhaustive,” and is a problem-solving framework that helps break down complex issues with clarity and structure. For a set of options, each item must be Mutually Exclusive (there’s no overlap) and Collectively Exhaustive (all possible options are present). This framework is useful to use when you have a complex problem you’re trying to solve, or you have a solution in mind and want to know how it fits into your overall goal.