Episte-who?

Onto-what?

Have you ever heard these terms before and wondered what they actually mean? If so, you’re not alone (I was there too, so I’ll break it down for you).

These are foundational philosophical concepts that help tremendously in organizing “reality” (we’re in the weeds with this one ). 

Epistemology is the branch of philosophy that deals with knowledge and how we know it. It focuses on the knowledge of an individual – what things are within your bounded rationality. Epistemologists try to help us better understand our own thought processes and how we perceive the world around us. 

They’re concerned with questions such as “What is knowledge?” and “How do we know what we know?” 

Ontology deals with the nature of existence. It deals with the fact that “reality” exists outside any one individual scope of comprehension (in the epistemological sense). Ontologists try to help us better understand the world around us and develop a framework for understanding different phenomena. From the ontological view, every moment of comprehension is only an abstraction or model of reality, and the actual reality is imperceptible.  

Pretty hardcore…

Understanding epistemology and ontology can have many practical applications. 

In companies it can help you make better decisions. By understanding the nature of existence and what exists in the world, you can identify unmet needs or opportunities in the market. By understanding the different types of knowledge and the methods we use to acquire knowledge, you can develop a better understanding of what your customers require. Also, when seeking advice, acknowledging the assumption stack which others operate under is key for understanding their paradigm.

When investing, understanding these concepts can help you delineate between what “is” in your reality and how it is delineated from others through bounded rationality. It helps you find an edge but also keeps you humble. 

There’s the added bonus in  circumventing the Dunning-Kruger effect, as accepting that you cannot understand the full reality of reality stops the foreboding “mountain of stupid”.

Epistemology and Ontology may seem like abstract concepts, but they are quite practical and applicable to more things than just philosophy or business.

By understanding how we acquire knowledge and what exists in the world, we can develop better mental models for decision-making and gain a deeper understanding of the world around us, as well as our own worlds we live in. 

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