<\/span><\/h3>\nIn the second half of Thinking Fast and Slow, Kahneman introduces you to the topic of ‘heuristics’. Heuristics is essentially mental shortcuts you take while in the decision-making process. Considering humans are consistently trying to solve problems as quickly as possible, heuristics are generally very helpful in your daily life.<\/p>\n
Heuristics can help you to apply previous situations knowledge, to a present circumstantial problem. However, heuristics can also cause systemic errors in thinking, misinterpretation of events, severe cognitive biases, and just generalized poor decision making.<\/p>\n
Kahneman continues in further depths about specific heuristics that can lead to poor decisions such as; anchoring (depending heavily on preexisting information), cognitive ease (whatever is easier for system two to believe, will likely be believed), jumping to conclusions (based on system one), and more.<\/p>\n
<\/span>Risk\/Loss Aversion<\/strong><\/span><\/h3>\nAnother major topic that Kahneman touches on in this book is risk aversion and loss aversion. He notes that in general humans tend to be risk-averse, meaning you attempt to avoid risk at all costs out of fear of the worst outcome. A risk-averse decision-maker will choose to pay the price to avoid the inevitable uncertainty.<\/p>\n
Loss aversion, on the other hand, deals with the concept that you are likely more strongly driven to avoid potential losses than you are to strive for gains. Because of this, you often adopt short-term goals to achieve, but not necessarily surpass, and are equally likely to reduce your drive once they’re reached.<\/p>\n
<\/span>Memories\/Preferences Shaping Decisions<\/strong><\/span><\/h3>\nThe last major topic to touch on that Kahneman discusses is that of how preferences and memories affect your decision-making process. Kahneman says that as humans, you generally believe that your decisions have your best interest at heart, but this isn’t always the case. You can’t fully trust in the fact that your personal preferences will always lead you towards the greatest possible outcome.<\/p>\n
Similarly, memories also intrinsically affect your decision-making process, however, with the negative aspect that your memories can be flawed or just downright incorrect. Generally, you hold less memory towards something painful and greater memories of moments of happiness. While seemingly harmless, Kahneman urges you to realize this isn’t proper.<\/p>\n
<\/span>Who Should\/Shouldn’t Read Thinking Fast and Slow<\/u><\/strong><\/span><\/h2>\nI believe that this is an excellent read for anyone who may be under the impression that they have some decision-making flaws. I tend to be a ‘fast thinker’, always rushing to conclusions and utilizing my emotions negatively, and I found this book to be quite helpful with that. If you struggle with judgement or decision-making, I highly recommend this book!<\/p>\n
However, if you’re closed off to the idea of learning how to better deal with your decision-making or thought process, then this may not be the book for you. It also may not be for the folks who are just genuinely uninterested in the topics of human behavior or psychology.<\/p>\n