Thinking, Fast and Slow Summary

"Thinking, Fast and Slow" is an extensive introduction to the biases and inner mechanisms of the human brain.

While primarily a behavioral economics book, you will also find out about your limitations, how to more efficiently convince people, and understand why people make certain decisions despite feeling they are irrational.

All the conclusions are validated through experiments that Kahneman performed along the years.

The human brain is controlled by two separate systems:

• System 1 - Very fast, it works on intuition and evolves as we encounter common situations;
• System 2 - Slower. We tend to avoid using it too much, but it is mandatory for complex problems that can't be answered by System 1, such as math problems.

You are not aware of which system is controlling the brain unless you make a conscious effort.

The following few ideas rely on this dual system distinction.

An answer to a number question can be influenced by previous information (even if it is completely unrelated to it). Using this strategy to influence decisions is called priming.

It acts as an anchoring effect, the human starts from the real answer he/she would give and goes up/down towards the number that was proposed (accidentally or not). This anchoring can be more or less strong (e.g. when the actual answer is 10, the suggested one is 5, and the person answers 8, it had a 20% impact).

System 1 comprises the oldest parts of the brain. It operates automatically and involuntarily. This system is always functioning and is responsible for most of the day-to-day activities. It is also responsible for our reactions to danger, novelty, and intuition.

System 2 allocates attention and completes tasks that require effort. System 2 is a newly evolved part of the brain, and only humans have a highly developed prefrontal cortex.

Try to solve this problem -

"A bat and a ball cost $1.10 in total. The bat costs $1.00 more than the ball. How much does the ball cost?"

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If you say $1 for the bat and 10 cent for the ball, then it's wrong because you just used the system - 1.

(Answer is given in the last idea of the article.)

System 1: This is fast, automatic, and emotional. You use it when making quick decisions, like recognizing a friend or reacting to danger.

System 2: This is slow, logical, and takes effort. You use it when solving a difficult problem or planning something important.

Our brains have two "systems" that complement eachother, with their own capabilities, limitations and functions.

• System One is fast, automated and precise, but can be easily tricked and has a small working window.
• System Two is slower, can make complex thoughts achieved in a specific algorithm and takes control over it's brother when he needs to with it's long but limited attention buffer.

With it's lighting fast reactions, System One is present in almost every common situation. It's actions are sometimes unstoppable and can be trained to steal tasks from the second System.

Depending on the complexity, here are some tasks that System One makes:

• Solves simple math like 2+2
• Recognizes a good chess move (if you are a chess expert)
• Reads words on big ads
• Drives the car on a empty road
• Makes you look in the direction of a sound

Being slower but very powerful, this part of the brain can partialy suppes the other one while taking control on our body and forming logical and complex operations that need an attention span while being easily interrupted, like:

• Solves complex math like 412* 525
• Searching for a person
• Controlling your behaviour
• Completing a formular
• Parking a car

We all believe that we are in control of most things around us, or at least that's what we aim to believe, thrive to imply and fear any opposing statements, but what if you come to understand that you are not in control as you ought to be, not only with your surrounding, but with your very own mind.

Dr. Danial Kahneman addresses the idea of how our minds work and whethere if it is biased in his book "Thinking fast and slow" which we will be exploring together in the next few ideas, whether you decide to continue reading or not, it's up to you ..... Isn't it?

So you might be thinking, I am in control, i mostly can swear that i direct my own mind to focus on certain things which are interesting to me, and hence i design my own perspective about things, i hold the brush and paint this painting, well i hate to tell you that that is what Kahneman called the systems 1 and 2

System 1: This is fast, intuitive, and automatic thinking. It's the kind of thinking we use for quick, everyday decisions and reactions.

System 2: This is slower, more deliberate, and analytical thinking. It's used for more complex cognitive tasks that require effort and concentratio n

In order to understand what is it you are in control of (System 2) we have to address system 1 first, of course both of the previously mentioned are a sort of explatory names to demonstrate the two styles of thinking our brains do, and they are non existent in real science.

So system 1 is the main decision maker in your head, it's your arms turning the driving wheel whenever your eyes see the desired U-turn, it's what comes to your head when you see the equation 2 + 2 =? it's simply the shortcuts your brain has devoloped throughout the years and does it automatically making you not in control

Our brains operate using two distinct systems: System 1 (fast, intuitive, emotional) and System 2 (slow, deliberate, logical).

System 1 is automatic and effortless, responsible for quick judgments and impressions. System 2 is more conscious and effortful, used for complex reasoning and problem-solving. Understanding these two systems can help us recognize how our thinking can be biased and how to make more rational choices.

Our thinking is prone to various cognitive biases, systematic errors in judgment that can lead to irrational decisions.

Kahneman explores biases like the availability heuristic (overestimating the likelihood of events that are easily recalled), confirmation bias (favoring information that confirms existing beliefs), and anchoring bias (over-relying on the first piece of information received). Recognizing these biases can help us make more objective and informed decisions.

We feel the pain of a loss more strongly than the pleasure of an equivalent gain.

 This asymmetry in how we perceive gains and losses can lead to risk-averse behavior, even when taking a risk would be statistically beneficial. Understanding loss aversion can help us make more rational choices in situations involving risk and uncertainty.

Your brain has two modes of thinking:

• System 1: Fast, automatic, intuitive

• System 2: Slow, deliberate, analytical

Most of our decisions start in System 1—even when we think we’re being rational.

System 1 is efficient but prone to biases. It relies on mental shortcuts (heuristics) that can lead to errors in judgment, like jumping to conclusions or misjudging risk.

We’re wired to create stories to explain events—even if those stories are wrong. We often mistake coherence for truth, which leads to overconfidence in our knowledge.

Daniel Kahneman was a Nobel Prize winning psychologist, economist and an author of best-selling books such as “Thinking Fast & Slow”. Also, Daniel Kahneman was a professor of psychology at Princeton University. He is also someone who took pleasure in admitting his mistakes and working towards improving his beliefs.

Do you know that even the single stream of thoughts we usually have is governed by two parallel cognitive systems which Daniel Kahneman calls System 1 and System 2.

Your mind likes the feeling of coherence and sentiment of habit, of déjà-vu. 

From an evolutionnary point of view, Sapiens needs to have a construction of reality clear. 

• Do you have to treat with this plant ? No, you recognize those red berries that causes flu.

D. Kahnemann calls this process the System 1. This is a cognitive agent which is trying to explain all of you hear, see and feel by a causal link.

A first way to improve your critical mind is to admit that chance, at least multiple causes make events happen. 

• Explain that WW2 is caused by the madness of Hitler is simple, not accurate.

Lucky you are, you can make a wonderful bet. At equal propabilities :

• 50% : You receive 120 $
• 50% : You lose 100 $

Stop reading, would you accept this ?

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If you're like the majority of us, you refused this gamble.

Our brain is not familiar with statistics. You don't think to the utility of the bet, you see two situations :

1. You change your current situation. You win a little quantity of money, cool. OR you lose almost the same amount, you swear against yourself, what an idiot decision
2. You don't change your situation, nothing happens

This is the loss aversion, our brain tends to avoid losses.

Good stories are simple. 

And when they seem coherent, we accept them without activating our critical mind (see "Main cause of biased judgment" in this collection). 

In particular, the conspiracy theories have another viral weapon. As the elements which take part of the theory are batching and seem plausible, you tend to strenghten your thoughts without taking into account what is belying them. This is the confirmation bias.

As you're sure that D Trump is fighting the "deep state", he accuses the media to spread fake news. Bim 'n boom ! You begin to believe that Thanos manage TV and papers.