Thinking Fast and Slow
By Daniel Kahneman
Thinking Fast and Slow was one of the most challenging and enlightening books I have read. It was developed through years of study over the human mind and the decision making processes that go on within it. While reading this book I learned about myself, my ways of thinking, and how to keep an open mind.
The book starts off with an explanation of the two systems that are apart of the human thinking process. There is system 1 and system 2, system 1 is the type of thinking that our mind does without consciously having to be told to do that action and is based on intuition. This would be things like; reading a word on a blank sheet of paper, blocking your face from an object flying in its direction, or even breathing. These actions do take learning and training in order for them to be automatic, but once they are, there is no strain involved in acting them out. The second part, system 2, is the more complex and delicate side of how our brain works. The system 2 functions take focus and concentration, and are often what we identify ourselves as. Some examples of this would be; adding together difficult numbers (1938+236=?), making a decision on what company or industry you would like to invest your financial assets in, or reading a book and trying to conceptually understand what the author is wanting to communicate. These actions do not naturally come, and take some time, effort, and concentration. These two hypothetical systems are the foundation to all decision making.
The second point that Kahneman makes is the theory of two figures Econs and Humans. To understand the difference between these two you must first understand what rationality means to each individual. He describes rationality as the consistency to ones belief system. In other words, being a rational person means that you perfectly correlate your decisions with your values and beliefs. A task that no human can achieve, everyone has made a decision at one point or another that is not spot on with what they believe is most important to them. Once you understand that, you realize that humans often need help in making rational decisions or accurate judgements. In order to be perfectly reasonable you simply cannot be rational. Econs however, do not need this type of governance. Econs will always make a strong rational and logical decision, no matter the situation, which means that they will strive when they are completely let free.
The book starts off with an explanation of the two systems that are apart of the human thinking process. There is system 1 and system 2, system 1 is the type of thinking that our mind does without consciously having to be told to do that action and is based on intuition. This would be things like; reading a word on a blank sheet of paper, blocking your face from an object flying in its direction, or even breathing. These actions do take learning and training in order for them to be automatic, but once they are, there is no strain involved in acting them out. The second part, system 2, is the more complex and delicate side of how our brain works. The system 2 functions take focus and concentration, and are often what we identify ourselves as. Some examples of this would be; adding together difficult numbers (1938+236=?), making a decision on what company or industry you would like to invest your financial assets in, or reading a book and trying to conceptually understand what the author is wanting to communicate. These actions do not naturally come, and take some time, effort, and concentration. These two hypothetical systems are the foundation to all decision making.
The second point that Kahneman makes is the theory of two figures Econs and Humans. To understand the difference between these two you must first understand what rationality means to each individual. He describes rationality as the consistency to ones belief system. In other words, being a rational person means that you perfectly correlate your decisions with your values and beliefs. A task that no human can achieve, everyone has made a decision at one point or another that is not spot on with what they believe is most important to them. Once you understand that, you realize that humans often need help in making rational decisions or accurate judgements. In order to be perfectly reasonable you simply cannot be rational. Econs however, do not need this type of governance. Econs will always make a strong rational and logical decision, no matter the situation, which means that they will strive when they are completely let free.
The Final part of the decision making process is the two selves. There is the experienced self and the remembering self. The experienced self is the state you are currently in. It is the living and doing that you do that keeps you present and real. The experienced self evaluates all of the pains and pleasures that a person goes through day to day. The remembering self is an aspect of your subconscious thought. It recollects memories on previously observed situations and then evaluates those memories. The remembering self has failures to it, due to biases and having stronger feelings for more recent memories. These two selves are where our decisions are mostly made and where the effects of those decisions linger.
Reading this book has cause me to reevaluate the way that I think and make decisions. I have learned to take more time and consider the biases that my mind creates before I act on life experiences. It has caused me to realize when I am acting on things without any recordable thought, something that I am working on not doing. I do not like going through situations and at the end of them reflecting and noticing that all of my decisions were based off intuition. I would highly recommend Thinking Fast and Slow to anyone who is going into the business of being involved with others. Simply put, anyone and everyone.
Reading this book has cause me to reevaluate the way that I think and make decisions. I have learned to take more time and consider the biases that my mind creates before I act on life experiences. It has caused me to realize when I am acting on things without any recordable thought, something that I am working on not doing. I do not like going through situations and at the end of them reflecting and noticing that all of my decisions were based off intuition. I would highly recommend Thinking Fast and Slow to anyone who is going into the business of being involved with others. Simply put, anyone and everyone.
Examples of studies done in the book
Two System Thinking
Econs vs. Humans
Given
Which is more probable?
A. Helen is a banker
B. Helen is a banker that walks to work
C. Helen is a teacher at an elementary school
Answer at the bottom of the page.
Given
- Helen likes to get physical exercise whenever possible
- Helen is very good at banking and trading
- Helen lives half a mile from her work
- Helen lives in Manhattan
Which is more probable?
A. Helen is a banker
B. Helen is a banker that walks to work
C. Helen is a teacher at an elementary school
Answer at the bottom of the page.
Experienced vs. Remembering Selves
In a previous study, Kahneman and colleagues looked at the pain participants felt by asking them to put their hands in ice-cold water twice (one trial for each hand). In one trial, the water was at 14C (59F) for 60 seconds. In the other trial the water was 14C for 60 seconds, but then rose slightly and gradually to about 15C by the end of an additional 30-second period.
Both trials were equally painful for the first sixty seconds, as indicated by a dial participants had to adjust to show how they were feeling. On average, participants’ discomfort started out at the low end of the pain scale and steadily increased. When people experienced an additional thirty seconds of slightly less cold water, discomfort ratings tended to level off or drop.
Next, the experimenters asked participants which kind of trial they would choose to repeat if they had to. You’ve guessed the answer: nearly 70% of participants chose to repeat the 90-second trial, even though it involved 30 extra seconds of pain. Participants also said that the longer trial was less painful overall, less cold, and easier to cope with. Some even reported that it took less time.
(Taken from http://mindhacks.com/2013/05/28/why-you-might-prefer-more-pain/)
In a previous study, Kahneman and colleagues looked at the pain participants felt by asking them to put their hands in ice-cold water twice (one trial for each hand). In one trial, the water was at 14C (59F) for 60 seconds. In the other trial the water was 14C for 60 seconds, but then rose slightly and gradually to about 15C by the end of an additional 30-second period.
Both trials were equally painful for the first sixty seconds, as indicated by a dial participants had to adjust to show how they were feeling. On average, participants’ discomfort started out at the low end of the pain scale and steadily increased. When people experienced an additional thirty seconds of slightly less cold water, discomfort ratings tended to level off or drop.
Next, the experimenters asked participants which kind of trial they would choose to repeat if they had to. You’ve guessed the answer: nearly 70% of participants chose to repeat the 90-second trial, even though it involved 30 extra seconds of pain. Participants also said that the longer trial was less painful overall, less cold, and easier to cope with. Some even reported that it took less time.
(Taken from http://mindhacks.com/2013/05/28/why-you-might-prefer-more-pain/)
Answer to Econs vs. Humans
A. Helen is a banker
The majority of people would put together all the facts that were listed and come to the conclusion that B is the correct answer. However, in order to be "a banker that walks to work" Helen must first be a banker. Therefore, If "Helen is a banker" then "Helen (could be) a banker that walks to work", but that situation does not make sense if you word it the other way around.
A. Helen is a banker
The majority of people would put together all the facts that were listed and come to the conclusion that B is the correct answer. However, in order to be "a banker that walks to work" Helen must first be a banker. Therefore, If "Helen is a banker" then "Helen (could be) a banker that walks to work", but that situation does not make sense if you word it the other way around.