Are Models a Way of Surfacing Assumptions?

Models are a tool for refining logic and pinpointing key drivers of behaviors and interactions. They shape decisions by defining reality and assumptions, influencing strategies in various fields like economics and political science. While there is a trend towards empirical research, focusing on data-driven insights, the power of theoretical models in designing mechanisms and institutions is undervalued. Models offer a unique perspective, allowing exploration of different institutional forms like markets, hierarchies, democracies, and algorithms to address societal challenges and reallocate problems effectively.