Thinking long and hard on fast and slow

Thinking, Fast and SlowThinking, Fast and Slow by Daniel Kahneman
My rating: 5 of 5 stars

If you are only going to read one book on psychology this decade – this should be it!

Daniel Kahneman’s new book Thinking Fast and Slow is one of those books you intend to read while taking notes, then just blow through it knowing full well you’ll have to go back and re-read it at least once per year just to swap it all in again. It sums up a lifetime of research into the surprisingly irrational ways we humans make decisions. Kahneman is a founder of experimental economics and received a Nobel price for it.

The book gives an overview of the various ways we make decisions, illustrated with many counterintuitive examples. Its central premise is that humans have two different decision systems: System 1, which is intuitive, fast, and easy, and System 2, which is rational, effortful, and lazy. We can also divide human models into two: Econs (classic Economic Man) and Humans (subject to all of Kahneman’s follies, and then some). And we have two selves: The experiencing self (living in the present) and the remembering self (living in the interpreted past).

Kahneman lays out these concepts, then show, through examples and research summaries, how they interact and influence our decisions. The intellectual stimulation and the practical implications for how we make the important and not so important decisions in our lives are immense – as an example, check this blog post on pricing experiments.

Highly recommended!

(more notes to follow, methinks)

(If you want a really good review – read Freeman Dyson in the New York Review of Books.)

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