In the highly anticipated Thinking, Fast and Slow, Kahneman takes us on a groundbreaking tour of the mind and explains the two systems that drive the way we think. System 1 is fast, intuitive, and emotional; System 2 is slower, more deliberative, and more logical.
Kahneman exposes the extraordinary capabilities and also the faults and biases of fast thinking, and reveals the pervasive influence of intuitive impressions on our thoughts and behavior. The impact of loss aversion and overconfidence on corporate strategies, the difficulties of predicting.
What will make us happy in the future, the challenges of properly framing risks at work and at home, the profound effect of cognitive biases on everything from playing the stock market to planning the next vacation each of these can be understood only by knowing how the two systems work together to shape our judgments and decisions.
Engaging the reader in a lively conversation about how we think, Kahneman reveals where we can and cannot trust our intuitions and how we can tap into the benefits of slow thinking. He offers practical and enlightening insights into how choices are made in both our business and our personal lives and how we can use different techniques to guard against the mental glitches that often get us into trouble. Thinking, Fast and Slow will transform the way you think about thinking.
Thinking, Fast and Slow PDF
This book is a tour de force of Behavioral Psychology. Explaining how our mind comes to conclusions and makes decisions, Kahneman explains that our intuition and decision-making part of the brain has two personalities. These personalities, he says, are not two different or distinct systems but to understand them better, we will have to assign personalities not only to understand them better but also to be able to relate to them on a personal level.
The two systems are called system 1 and system 2, for the sake of convenience. System 1 is vigilant, impulsive, judgmental, easily manipulated, highly emotional. System 2, on the other hand, is the total opposite of system 1, it is very intelligent, indolent, mostly drowsing off in the back of our head, difficult to convince, and extremely stubborn, and it only comes to action when there is some sort of ‘emergency’. Both these systems are susceptible to a number of biases, system 1 more than system 2.
I thought Kahneman would build up this narrative systematically but he goes on to give us a tour of his years of research, experiments, and surveys exploring every nook of our conscious human mind. He focuses on a diverse set of heuristics and biases that influence our judgments in everyday life. With some brilliant experiments and survey reports, he convincingly elaborates the effects that these biases have on our decisions.
Never forgetting to highlight the fallacies of our consciousness, he touches on a number of other important breakthroughs in the world of psychology. This is a very simple case of visual illusion where we see two lines of the same size appearing to be of varying lengths. Even after knowing that they are equal and the illusion is created by the fins attached to them, our system 1 still impulsively signals that one of them is longer than the other.
Through this simple illustration, he moves on to introduce Cognitive Illusions, which are more fascinating, and are drastically more effective. Kahneman contends that it is extremely difficult to overcome heuristic biases. Although, through methods like using statistical formulas and deliberate scrutiny we can ‘rationalize’ our decisions to some extent.
Still, we are inherently prone to fall for dazzling rhetoric and dashing figures, we believe in myths and incidents that are as improbable as they are ludicrous because this is the way we see things. But this is not undesirable altogether, some of the intuitive abilities are an evolutionary blessing that helps us understand emotions and make the correct decision in split seconds. Neither does the author deems it expedient to overcome these biases, but only to recognize them and put our system 2 to work before making crucial judgments.
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|Book Title||Thinking, Fast and Slow|