Overview

Author of Thinking, Fast and slow book Daniel Kahneman is Winner of the Noble Prize. He has shared how we can make our decision most appropriate. Because we humans make so many wrong decisions due to that we have to face the circumstances. To get the best outcome of your decision I’ll share with you 5 main key aspects that can change your perspective.

Content

Thinking, Fast and slow has many points which can help us to make the decision better. From this book, I’ll introduce 5 key points which you cannot miss.

The points are as follow

1) Two Systems

The author says we have two types of systems for analyzing situations

  • System’s 1
  • System’s 2
System 1

Mr.Kahneman said system 1 makes a decision automatically, fast without any further effort. Just like If you want to go somewhere and you see it’s raining, but you want to go you will take out an umbrella.

System 2

In system 2 mind becomes consciously active whenever we want to do some complex work. Just like if you want to fill out a tax form. in this, you will think about where you had spent money how much you need to pay tax.

Which is better system 1 or system 2?

Both the systems are perfect but you need to choose when system 1 or system 2 needs to implement. Because when the work is just simple instead of using system 1 you use system 2 then you are wasting your time and effort.

2) The Science of Availability

This is part of the availability heuristics approach. what is availability heuristics? It is a shortcut to get a piece of information regarding a specific topic on the basis of past information that you have stored in your memories.

With the example, I’ll explain it to you.

You have seen the news “plane has crashed which was going to New York”. Now you have decided you will not go to New York by plane you will take a train.

What to do then?

The science of availability can help you a lot if you use the information properly, sometimes it may won’t work.

3) The Illusion of understanding

Under the illusion of understanding, there is a topic Hindsight. what is Hindsight how it applies? Hindsight is a phenomenon where a person assumes the result before the actual result. After completing the event they will say I already knew the result.

In these, if the outcome is not favorable then they will blame to someone else, but the outcome is favorable then they will come to take credit.

What we can understand from this?

Hindsight is very risky if you are overconfident and the result is not under your favor, you can lose many things. So whenever you are making a decision don’t be greedy or over-optimistic.

4) Risk Policies

The risk policies can analyze how you calculate you are a risk, To identify they will give you two questions with two pairs of answers.

Decision (i) Choose between

A. A sure gain of $240

B.25% chance to gain $1,000 and a 75% chance to gain nothing.

Decision (ii) Choose between

A. A sure loss of $750

B.75% chance to lose $1,000 and 25% chance to lose nothing.

The author got the result 73% of the people selected ” AD “ and 3% “BC“.

In these also our System 1 dominant over System 2 usually people have seen benefits in “AD” it was clearly mentioned profit and loss.

In “BD” options people need to calculate that’s the reason 74 % of the selected “AD”.

How we can escape from this?

If we use system 1 over here we can loose? so analyze the situation you will get your result for sure.

Two Selves

A doctor had done a colonoscopy on two individuals divided into two-part to explain this. 1) Peak-end rule 2) Duration Neglect.

After that result show’s how our decisions, well-being, and emotions, related to our experience which we gain it help us to remember. If we had a good experience then we will be happy but the last moment is not fair then the previous good experience will not remember it.

What we can understand from this?

Always try to have collect good memory and forget about the awful moment of your life, unnecessarily you hate things.

Conclusions

We have two systems we should know when and how to use the system effectively. After mastering this you find you top 5 goal which you wan’t to achieve in your life. There are many other points which I need to add but for now, 5 point is also enough for us to utilize it. If you want to Thinking, Fast and Slow a book then you can buy from online they have both hardcover and paperback edition or from the book store even it available thinking fast and slow If you want.

If you want thinking fast and slow audiobook free?

It’s better if you buy and give credit to the author. If you want for then you can register on audible they give 30 days free trial.

In case you want thinking fast and slow read online?

Yes, you can read online through kindle.

If you want thinking fast and slow buy online?

You can buy online through amazon.


2 Comments

Vikas Tiwari · 16/01/2020 at 10:30 PM

I always wanted to study this topic and you help me with the same
Examples are the best

    Vivek · 16/01/2020 at 11:00 PM

    Thank you vikas

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