Thinking, Fast and Slow: Intuition, Biases, and Choice

Thinking, Fast and Slow by Daniel Kahneman winner of the Nobel Prize in economics explores human cognition and decision-making, differentiating between two mental systems: System 1, which is fast, intuitive, and emotional, and System 2, which is slower, more deliberative, and logical. It examines various cognitive biases and heuristics, such as the availability heuristic and anchoring effects, that influence judgments and lead to predictable errors. The text further discusses prospect theory, detailing how individuals evaluate gains and losses differently, often exhibiting loss aversion and being influenced by framing effects. Finally, it touches upon the predictability of intuitive expertise, emphasising the importance of feedback and regular environments for developing accurate intuitions, and explores how these insights can inform public policy and decision-making.