...Thinking, Fast and Slow Daniel Kahneman FSG © 2011 512 pages [@] getab.li/15856 Book: Rating 8 6 Importance 9 Innovation 8 Style Focus Take-Aways • When you think, your mind uses two cognitive systems. • “System 1” works easily and automatically and doesn't take much effort; it makes quick judgments based on familiar patterns. • “System 2” takes more effort; it requires intense focus and operates methodically. • These two systems interact continually, but not always smoothly. • People like to make simple stories out of complex reality. They seek causes in random events, consider rare incidents likely and overweight the import of their experiences. Leadership & Management Strategy Sales & Marketing Finance Human Resources IT, Production & Logistics Career & Self-Development Small Business Economics & Politics Industries Global Business • “Hindsight bias” causes you to distort reality by realigning your memories of events to jibe with new information. • “Loss aversion” and the “endowment effect” impact how you estimate value and risk. • Your “two selves” appraise your life experiences differently. • Your “experiencing self” lives your life; your “remembering self” evaluates your experiences, draws lessons from them and decides your future. • These two contrasting systems and selves disprove economic theories that say that people act rationally. Concepts & Trends To purchase personal subscriptions or corporate...
Words: 3104 - Pages: 13
...brains are comprised of two main systems: one that has the ability to think fast and another that thinks slow. Naturally, the first system acts on impulse. This part of the brain operates automatically and almost effortlessly, controlling our involuntary actions such as reacting to a dangerous incoming object or telling our hearts to keep beating. The second system, however, acts in a more methodological manner - it processes inputs and information instead of acting purely on intuition and natural inclination. This part of the brain is usually responsible for helping us solve computational problems and serves as the “hub” for most of the critical thinking we do. In the first chapter of Thinking, Fast and Slow, Kahneman claims that these two systems of the brain are analogous to two characters or personalities that are always competing with one another. He states that system one functions off heuristics - which are the biases that exist in our intuition - and that system two is then faced with the task of evaluating and attempting to fix those biases (often failing to do so effectively). Therefore, one of the main points of his book is to elucidate how to “recognize situations in which mistakes are likely and try harder to avoid significant mistakes when the stakes are high”. In the second chapter of Thinking, Fast and Slow, Kahneman describes how most humans have a natural tendency to think fast. This is because system two usually requires more thought and “work” and history...
Words: 699 - Pages: 3
...Small Numbers 11. Anchors 12. The Science of Availability 13. Availability, Emotion, and Risk 14. Tom W’s Specialty 15. Linda: Less is More 16. Causes Trump Statistics 17. Regression to the Mean 18. Taming Intuitive Predictions Part III. Overconfidence 19. The Illusion of Understanding 20. The Illusion of Validity 21. Intuitions Vs. Formulas 22. Expert Intuition: When Can We Trust It? 23. The Outside View 24. The Engine of Capitalism Part IV. Choices 25. Bernoulli’s Errors 26. Prospect Theory 27. The Endowment Effect 28. Bad Events 29. The Fourfold Pattern 30. Rare Events 31. Risk Policies 32. Keeping Score 33. Reversals 34. Frames and Reality Part V. Two Selves 35. Two Selves 36. Life as a Story 37. Experienced Well-Being 38. Thinking About Life Conclusions Appendix Uncertainty A: Judgment Under Appendix B: Choices, Values, and Frames Acknowledgments Notes Index Introduction Every author, I suppose, has in mind a setting in which readers of his or her work could benefit from having read it. Mine is the proverbial office watercooler, where opinions are shared and gossip is exchanged. I hope to enrich the vocabulary that people use when they talk about the judgments and choices of others, the company’s new policies, or a colleague’s investment decisions. Why be concerned with gossip? Because it is much easier, as well as far more enjoyable, to identify and label the mistakes of others than to recognize our own. Questioning what we believe and want is...
Words: 189666 - Pages: 759
...The book that I chose for this book review is Thinking Fast and Slow by Daniel Kahneman. He is an Israeli-American psychologist and winner of the 2002 Nobel Prize in Economic Sciences. He is notable for his work on the psychology of judgment and decision-making, behavioral economics and hedonic psychology. The main thesis of the book is quite simple. When judging the world around us, we use two mental systems: Fast and Slow. The Fast system (System 1) is mostly unconscious and makes snap judgments based on our past experiences and emotions. When we use this system we are as likely to be wrong as we are to be right. The Slow system (System 2) is more rational, conscious and slow. They work together to provide us with a view of the world around us. Together, they shape our impressions of the world around us and help us make choices. System 1 is largely unconscious and it makes snap judgments based upon our memory of similar events and our emotions. System 2 is painfully slow, and is the process by which we consciously check the facts and think carefully and rationally. Problem is, System 2 is easily distracted and hard to engage, and System 1 is wrong as often as it is right. System 1 is easily swayed by our emotions. Some examples he cites include the fact that pro golfers are more accurate when putting for par than they are for birdie, regardless of distance, and people buy more cans of soup when there's a sign on the display that says "Limit 12 per customer." An easier way...
Words: 738 - Pages: 3
...you have author Alison Leitch who argues in hopes to bring attention to “slow foods” and in chapter 29 you have author Jeffrey M. Pilcher, who argues for slow foods and fast foods and against fast foods. Each authors argument combines into one as you read further into the chapters you start noticing how each author backs up each other because they are all arguing that the best thing for the human body is home...
Words: 648 - Pages: 3
...where they constantly have to meet deadlines and do so in a timely fashion. In the world today, it is so fast paced, people forget to settle down and appreciate the moments they have. Think about today, going several places, hundreds of things crossing a person's mind; Do they ever remember to live in the present? Today, people can instantly connect to millions of people throughout the world. Today,a person can make a once 30 minute trip into a 5 minute trip. With the world today being so fast, it is easy to forget how it used to be. At one time, it took days to communicate across the world; Now, it takes a few presses on a screen and a few seconds. People sometimes forget to slow down in our busy world. David L. Weatherford tries to bring light to this everyday struggle of hurrying through life. Weatherford uses his own personal experiences and several different literary devices such as imagery,...
Words: 1292 - Pages: 6
...Music Appreciation Reflection At first the performance started of slow and i was thinking what was going on because when i thought wind symphony I expect like high fast and up beat. But then it began. “Danzon” was fast and in my mind I was thinking, “whoa this one is really good because its fast” and then it ended really quick, faster than expected. When the conductor said that they were going into solo pieces, i automatically assumed that someone was going to be performing by themselves and it was going to be a long performance. Boy was i wrong. He meant solo as in the groups go solo. Which is something I learned new. Then the third piece began, liked the fact that it was slower and more relaxing in the sense that it sounded more like a jazzy type feel to it. Also, it reminded me of something you would find in an old crime/detective show from the 520s or 30s and the picture is still black and white. It struck the oldie inside me. At first I believed my favorite part was “Danzon” because it was faster and more upbeat to everything and not slow but to my amazement my favorite would have to be the last one, “Symphony No.2 for Winds and Percussion” because it was honestly the most familiar to me above all pieces. I’ve heard before in plenty of movies especially scary movies. Also, the brass section of this piece makes the whole performance go BOOM because it makes it really intense along side with the big drum because the “dung dung dung” part makes it feel real. I feel like...
Words: 314 - Pages: 2
...which influence our thinking, judgement and decision-making Our everyday lives are filled with many choices and decisions which will impact on our lives both in the short and long-term. Our perception of the impact of these decisions on our own lives and those around us will affect how much time and effort is given to arriving at these decisions. There are several factors which impact on thinking, judgement and decision-making and it is important to note that often these occur simultaneously rather than as individual areas but in order fully understand the entire process we must analyse the factors in each individual area. While it is neither practicable or possible to consider all the factors in every decision, knowledge of the factors, process and how they interact can be of critical importance. By understanding the factors, we can ascertain how we make decisions and by gaining knowledge on the entire process, we can ultimately arrive at better decisions by being conscious of our thought and application process. How we think and apply our thought process to the decisions often determine the paths we choose to take. There are two systems, or modes, which determine how we think (Kahneman, 2011). The first system is fast, automatic, emotional and frequent and the second system is slow, logical, infrequent and conscious. The title of the Kahneman’s book, Thinking, Fast and Slow, gives us an indication of the two systems. The first system, thinking fast, is associated with...
Words: 3951 - Pages: 16
...I would suggest solving the problem with logical thinking style which is mostly used in the business world to make decisions. In order to find a solution, we need to start with understanding what’s behind month end close and what causes the slow process. The close process is relevant to regular data maintenance, project controlling, accounting process and financial reporting. Based on my understanding, each area has certain elements that cause the slow close in combination. Actions should be taken in each step of month end close. Firstly, eliminate bad data and non-value added activities. Bad data is poor quality information that arises due to missing, inconsistent and erroneous data. As for any system “bad data in leads to bad data out”, this is where the initial effort to improve the month close should be invested. Secondly, improve the effectiveness of control and process. In order to avoid propagating bad data elements into good quality data, a system needs to be in place capable of preventing and/ or detecting errors before they occur. And the best practice would be use automated controls and processes (provided they have been correctly established). Thirdly, use the best technology, together with the process improvement, to generate and update simplified and automated financial documents. In conclusion, the close process would be improved and fasted through the effective and automated company system. The case for a fast close process is becoming increasing relevant to...
Words: 447 - Pages: 2
...What is the difference between speed and velocity? * Speed is how fast you’re going * Velocity is how fast you’re going but you need to add direction of the way you’re going in. What are different parts of a distance-time graph? * Flat sections up – steady speed * Flat line – stopped * Curved line up – accelerating * Line curving off – decelerating * Straight line down – steady speed in other direction How do you calculate speed from a distance time graph? * Vertical / horizontal = speed What is acceleration? * How quickly the velocity is changing * The change in velocity can be a change in speed, or direction or both How to calculate acceleration? * Acceleration = change in velocity / time taken What is each part of a velocity time graph? * Straight line up – accelerating * Straight line – constant speed * Curved line up – increasing acceleration * Straight line down – decelerating How to find the distance travelled on a velocity time graph? * It is equal to the time interval underneath an area of a graph What is mass and weight? * Mass Is the Amount of matter that makes up an object * Weight is the force which pulls a object to the ground What is weight measured in? * It is a force measured in newton’s (N) What is the resultant force? * The sum of all the forces acting on an object What happens to an object if the resultant force is zero? * It will remain...
Words: 686 - Pages: 3
...the kitchen to make the most important decision of my morning, breakfast. In the morning when I am debating on what I want to eat, while also thinking about how much time I have to prepare a meal; I keep in mind my schedule for the day, and how much energy I will need. Grabbing a snack on the way out of the door is something to hold me over if I don't have to do much during the day, cooking a nice meal when I know I have a long day ahead of me and will need a lot of energy, and trying to refrain from grabbing some fast food while I’m on the go is something I try so hard not to do, but I'd rather have a little bit of energy from McDonalds Sausage Muffin rather than no energy at all. Usually classifying my breakfast into categories of ones that take longer to cook, grab and go food, and fast food. First the Grab and Go foods. Grabbing a granola bar, pop tart, or NutriGrain bar on my way out the door in the morning may seem like a quick and easy meal, but I know this won’t be that beneficial to my body. When eating a small quick meal at the morning, and having a long day ahead is never a good idea, needing energy to get through long days, small meals don’t provide that. A small meal may seem like a good idea in the time because it’s just something to get out of the door, onto the next thing, when in reality it goes just as fast as it came. Granola bars, and Pop Tarts aren’t all that bad to snack on during...
Words: 864 - Pages: 4
...MAP Study Skills Finding & Reading Information Assignment Booklet Student Name: FADUMO AWIL Route: MAP Humanities | | |Unit Title |Finding and Reading Information | |Level |2 |Credit Value | 3 |Unit Code |HC7/2/LN/559 | |Learning Outcomes |Assessment Criteria | |The learner will: |The learner can: | | | | |1. Recognise the variety of resources available in a library |1.1 Locate and use resources from both reference and loans sections of | | |library and electronic resources e.g. internet, DVD, CD rom, and video.| | | | | ...
Words: 1780 - Pages: 8
...know i’m afraid of heights. But, I can trust them because I know they wouldn’t do that to me. Then they both say, ” Let's go on the SkyRush!” I didn’t know what to say. I just stood there frozen in fear. Then I said,” You guys can go my stomach hurts.” Eli said, ” Dude, stop being a baby.” Then Patrick said,” My God Jayden, come on bro. Man up! In my head I was thinking if I don’t go on, Partick will never invite me to go somewhere again. So, that was the day I rode the Sky Rush. We were waiting in line and the line was moving fast. “ The line needs to go slower”, I said. Patrick responded,” No. The line is fine because then we get to go on faster.” The line went on and we were boarding the coaster. I sat down and was feeling regret already. The coaster started moving, now I was freaking out. We weren’t even halfway and the coaster was going as slow as molasses. As we went up, I could see the whole park under me. We got all the way to the top. The front of the coaster started going down, then the middle, then us. I screamed as loud as i could. Patrick and Eli were laughing at me. I didn’t care,...
Words: 505 - Pages: 3
...When hearing the national anthem being played I felt like time slowed down as I was thinking of all the blood sweat and tears I did to get there. I remember the days I had to swim over 10,000 yards in one day. The days I had to wake up at 5am in the morning to work out and swim before school. Everything I did to live up to this moment. Hearing each note of the national anthem crystal clear as i closed my eyes I could see the memories of me as a child at the YMCA being the only advanced one in my swim lessons. I knew i wanted to be good I wanted to be the best. So ever since I turned the age of seven I have strived for greatness and wanted to make my parents proud. I could see one of my first races looking at my parents in the stands...
Words: 2009 - Pages: 9
...campaign launched the Volkswagen in America in the 1960. In the 60’s cars were fashion statement, testosterone boosters, and muscles on wheels. They were built to be fast, big , stylish and way to show off. And here came Volkswagen with Beetle it was a small, slow, ugly, foreign car that was also tied to Nazi Germany. To sell this car to a country which was still bitter about the world war? The car was always perceived to be a small and slow car so instead of trying to sell the American public a primed marketing campaign Volkswagen decided to be honest about it. The Ad copy read that the max speed was 72 mph. It also spoke about its weird looks. This cleverly made the people look into the ad and read it. It took the Assimilation effect where the receiver perceives the message t be advocating a position closer to his or her own position. So the copy then goes on to talk about the engineering of the car and how it being slow still had the best engine around. It also speaks about its good mileage and how its looks make it stand out. The Ad hooks into the consumer and makes them want to know more about it. This is also made the Volkswagen Beetle a well defined brand personality that carves itself a niche in the market place. This mad the readers from wondering if the car is socially acceptable to almost thinking of owning it. The Graphics of the ad also are kept minimalistic keeping in line with the Volkswagen performance before looks. This made it stand out from other ads...
Words: 312 - Pages: 2
