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Thinking Fast and Slow
Author: Daniel Kahneman

Publisher: Allen Lane
ISBN: 9781846146060
Pages: 512
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Thinking Fast and Slow is based on decades of research into human behavior conducted by Daniel Kahneman and his partner Amos Tversky. The latter died in 1996, but before that the duo had demolished one of the long cherished myths of economists – that the humans are always rational and will inevitably make decisions that are based on maximizing utility. In the course of their work, Kahneman and Tversky developed an alternate theory of decision making known as prospect theory. The prospect theory was based on human psychology and so great was its impact that Daniel Kahneman, a psychologist, was awarded the Nobel Prize in Economics in 2001.

Thinking Fast and Slow takes us on an astonishing journey of the brain and its thinking process. Daniel Kahneman has two fictional figures working in our brain. System 1 is emotional, quick and remarkably agile in making judgments. System 2 is slower, rational, conscious and takes the effort to work things out. All of us love to imagine that we are governed by System 2. Not so, says Daniel Kahneman. It is System 1 who is the hero – the one who takes the major decisions in our life. It influences our thoughts, our impressions and judgments. The book states that only by understanding the working of both the systems in our brain will we be able to understand why we do what we do.

The book goes further tells us when and where to trust System 1 and also how we should be able to tap into System 2. He explains the different ways by which we can avoid falling into the trap of making snap decisions. Reading the book can change the way you think and help you make significant changes in your life.