Kahneman Daniel. Thinking, Fast and Slow

Farrar, Straus and Giroux, 2011. — 512 p. — ISBN: 9780374275631.Thinking, Fast and Slow is a 2011 book by Nobel Memorial Prize in Economics winner Daniel Kahneman which summarizes research that he conducted over decades, often in collaboration with Amos Tversky. These scholars have offered a trove of evidence that people, far from being the rational agents of textbook lore, are often inconsistent, emotional, and biased. Perhaps tellingly, the pioneers of this field were not economists.
Synthesizing decades of his research, as well as that of colleagues, Kahneman lays out an architecture of human decision-making—a map of the mind that resembles a finely tuned machine with, alas, some notable trapdoors and faulty wiring.Daniel Kahneman, recipient of the Nobel Prize in Economic Sciences for his seminal work in psychology that challenged the rational model of judgment and decision making, is one of our most important thinkers. His ideas have had a profound and widely regarded impact on many fields—including economics, medicine, and politics—but until now, he has never brought together his many years of research and thinking in one book. 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.Two Systems
The Characters of the Story
Attention and Effort
The Lazy Controller
The Associative Machine
Cognitive Ease
Norms, Surprises, and Causes
A Machine for Jumping to Conclusions
How Judgments Happen
Answering an Easier Question
Heuristics and Biases
The Law of Small Numbers
Anchors
The Science of Availability
Availability, Emotion, and Risk
Tom W’s Specialty
Linda: Less is More
Causes Trump Statistics
Regression to the Mean
Taming Intuitive Predictions
Overconfidence
The Illusion of Understanding
The Illusion of Validity
Intuitions Vs. Formulas
Expert Intuition: When Can We Trust It?
The Outside View
The Engine of Capitalism
Choices
Bernoulli’s Errors
Prospect Theory
The Endowment Effect
Bad Events
The Fourfold Pattern
Rare Events
Risk Policies
Keeping Score
Reversals
Frames and Reality
Two Selves
Two Selves
Life as a Story
Experienced Well-Being
Thinking About Life
Conclusions
Appendix
Judgment Under Uncertainty
Choices, Values, and FramesNotes