Thinking, Fast and Slow

The work of Daniel Kahneman and Amos Tversky was crucial pivot point in the way we see ourselves and provided a foundation for what we now call behavioral economics.

System 1 has more influence on behavior when System 2 is busy, and it has a sweet tooth.

To derive the most useful information from multiple sources of evidence, you should always try to make these sources independent of each other. This rule is part of good police procedure

Behavioral economics studies the effects of psychological, cognitive, emotional, cultural and social factors on the decisions of individuals and institutions and how those decisions vary from those implied by classical economic theory.

The two systems have been used to discuss how we process information. System 1 is often more convenient, it is subject to biases and errors which can lead to irrational decision making. In older conversations it was refereed to as the Lizard brain. System 2 is, however, more easily manipulated – perhaps towards decision making that is harmful to individual consumers, and to third parties.

I have read work being done on what is being called System 3, to represent the imaginative thought and our ability to construct and envision future states.

This one of the great books that I have reread several times.

Here is the Link to the Amazon book.