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Success Mantra: Thinking, Fast and Slow-

It will deal your conspirators a blow!

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December 4-

“Thinking, Fast and Slow” is a 2011 popular science book by psychologist Daniel Kahneman. Kahneman explores the two systems that drive the way humans think: System 1 (fast, intuitive, and emotional) and System 2 (slow, deliberate, and logical).
Here are 10 lessons from the book:
1. Dual thought systems: Understanding the distinction between System 1 and System 2 thinking helps us recognize when we’re making decisions based on intuition (System 1) versus careful analysis (System 2).
2. Cognitive biases: Kahneman highlights numerous cognitive biases that affect decision-making, such as anchoring, availability heuristic, confirmation bias, and more. Being aware of these biases can help mitigate their influence on our judgments.
5. Prospect theory: Kahneman introduces prospect theory, which explains how people make choices when faced with uncertainty or risk. It suggests that individuals tend to weigh potential losses and gains asymmetrically.
3. Heuristics and shortcuts: Our minds often use mental shortcuts (heuristics) to make quick decisions. While these shortcuts are efficient, they can lead to errors in judgment and decision-making.
4. Loss aversion: The book discusses how people tend to strongly prefer avoiding losses over acquiring gains, even when the outcome may be the same. Understanding this bias can impact how we approach risks and opportunities.
5. Prospect theory: Kahneman introduces prospect theory, which explains how people make choices when faced with uncertainty or risk. It suggests that individuals tend to weigh potential losses and gains asymmetrically.
6. Overconfidence: People tend to be overly confident in their judgments and abilities, often more than what is statistically justified. This overconfidence can lead to errors in decision-making.
Slow thinking for complex problems: While System 1 thinking is fast and efficient, complex problems often require System 2 thinking—slow, deliberate, and analytical—to arrive at more accurate conclusions.
7. Regression to the mean: Understanding regression to the mean helps recognize that extreme events or outcomes are likely to move towards the average over time. This knowledge can help in predicting future outcomes more accurately.
8. Frames and context: Our perceptions and decisions can be significantly influenced by the way information is presented or framed. Being aware of framing effects can help in making more objective decisions.
9. Slow thinking for complex problems: While System 1 thinking is fast and efficient, complex problems often require System 2 thinking—slow, deliberate, and analytical—to arrive at more accurate conclusions.
10. Behavioral economics: The book merges insights from psychology and economics, establishing the field of behavioral economics. It challenges traditional economic theories that assume rational decision-making by considering how humans actually make choices.
“Thinking, Fast and Slow” encourages readers to become more aware of their thinking processes, biases, and the factors that influence decision-making. It emphasizes the importance of critical thinking, skepticism, and deliberate analysis when facing complex problems or making important decisions.
Courtesy: Maricar Wagan Cainoy : https://facebook.com/cainoymaricar
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