Thinking fast and slow

Thinking, Fast and Slow by Daniel Kahneman  is a very long with book 533 pages and it is packed tight of useful scientific text. Although this book is a goldmine it takes a long time to process.

Once you have finished reading this book you know all of the most common judgement errors that everyone should know. You should be able to raise a red flag when you are about to make decision on shaky grounds.  This book will open your eyes and all the decision making mistakes will be especially obvious on other people.

I will list just a few examples in here

  • Cognitive ease – if it feels familiar then it feels true
  • WYSIATI – if you know only 2 facts out of 100 then you feel like 2 facts is all there is. You will make decision only based on these 2.
  • illusion of control – stock market experts believe that they have upper hand while statistics shows that majority is not doing any better than general indexes.
  • framing effect – If drug saves 50 people out of 100 then it is much better you say that drug kills 50 people out of same 100
  • duration neglect and peak-end rule – You think that 30 days of vacation in Cancun is 10x better than 3 days. However a bit later it does not make much difference in the memories. If 30 days of vacation is ended with 2 bad days then all of the vacation feels bad.

There are many more situations explained in this book. I gained a lot of valuable understanding and I feel significantly more confident about mu skill of making decisions. Or should I not because self-confident experts should be trusted only if they have considerable experience which still needs to be gained after reading this book? 🙂

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