Summary – Thinking Fast and Slow by Daniel Kahneman
Thinking fast and slow by Daniel Kahneman provides an insight and understanding for topics like psychology, perception, irrationality, decision making, errors of judgment, cognitive science, intuition, statistics, uncertainty, illogical thinking, stock market gambles, and behavioral economics. Author further uses the example of prospect theory to demonstrate decision making under risk and uncertainty. The book shows that our intuition is biased and we assume certain things without having thought through them carefully. Author calls these assumptions heuristics. He shows that certain heuristics lead to muddled thinking, and gives each a name such as “halo effect,” “availability bias,” “associative memory,” and so forth.” Kahneman reveals where we can and cannot trust our intuitions and how we can tap into the benefits of slow thinking. He offers practical and enlightening insights into how choices are made in both our business and our personal lives—and how we can use different techniques to guard against the mental glitches that often get us into trouble.
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