Thinking fast and slow

THINKING FAST AND Slow
DANIEL
KAHNEMAN
Fast and intui
SYSTEM I
operates
System I makes
f the decisions.
automatically and quickly,with little or no
it minimizes effort and optimizes
effort and n
nse voluntary control.
mental performance, bit for that it
Slow and lazy. Allocates attention to the makes Some mistakes and operates
SYSTEM
with bias in specific situations.
effortful mental activities that demand
it, including complex computations.
HOW DOES I 11$!
PRIMING
If you have to force YO rsell
System I makes associations.
to db something.you are less
After reading words with an elderly
Willing or able to exert self control
theme, students walk more slowly.
when the next challenge comes around.
ON(IUSIONS
System I creates a
coherent story with
the available
W.YSIA.T.I.
information regardless events and current
Of the quaiity of the _C0ntext hive the most weight
informatlon.
•n determining interpretation.
Whadou see IsAll There Is
Learn how to protect yourself.
OGNITIVEEASE —
Beingin a good mood
and relaxed encou@ges the
use of system l. You like what you
see, believe what you hear.
IllUSlON OF
(AUSAIITY
System I is adept at finfiya coherent
causal Story that links the ragments
of knowledge at its disposal.
DOES IT AFFECT OUR JUDGMENT!
Our mind is strongly biased toward causal explanations and does not de well with mere statistics
IAWOFSMAII —r
Small
samples do.System I
V E constructs stories that are as
coherent as possible. (WYSIATI)
ANCHORING TO THE MEAN—
People's judgements
are Influenced by an
obviously
uninformative number.
System I looks for the causal
relationship when in fact there
is only random variation,a
regression to the mean.
WHY ARE WE BLIND!
"We can be blind to the obvious, and we are blind to our blindness."
NARRATIVE
HINDSIGHT BIAS
PIANNING
How flawed stories of
A genera! lin!itytign of the
We tend to overestimate
C our plans and forecasts.
Our estimates are closer to
a best-case scenario than
to a realistic one.
HOW DO OUR (HOKES DEVIATE FROM RATIONALITY!
ECONS are by definition.but there is overwhelming evidence that HUMANS cannot be.
LOSS AVERSION
Thelear Of losing 00
_ismore intense than
the ho e of gaining
150. toss aversion
= 2 (on average).
f RARE
ENDOWMENT —EVENTS
to Increase its value. We hold our money in different
Gighiy unlikely
Giving up a bottle 01 nice mental accounts _ There is a clear
wine Is more painful than hierarchy in our willingness to
nts are i ored
draw on th
ese accounts to cover
current needs.
Recognite the signs that you are in a cognitive minefield, slow down, and ask jor reinjorcement from system