In “Thinking, Fast and Slow”, Daniel Kahneman reveals several
big ideas on psychology and human behavior. The general argument of the book is
that humans have two systems for thinking: System 1 which is fast and automatic,
and System 2 which is slow and logical. Kahneman claims that most of the time,
we are thinking intuitively and automatic, which can lead us to making wrong
conclusions. As a result of system 1 thinking, people make errors such as
hindsight bias, overconfidence, and confirmation bias.
This book relates to the lessons from this course that ask
us to analyze people’s behaviors. In the interviews I’ve conducted for my
business idea, I’ve analyzed how people’s perception changes depending on their
unique backgrounds and experiences. Understanding why someone may jump to an
irrational conclusion is useful in a business setting.
For an exercise based on Kahneman’s book, I would have the
class record as many thoughts they had in one day, and then sort them as
whether it was a System 1 thought or a System 2. It’s a fascinating exercise
that would reveal to ourselves our own biases and behaviors.
A big takeaway I had from this book is realizing how engrained
our patterns of thoughts are, and how easily perception can be altered with
concepts such as loss aversion, framing, and sunk cost fallacies. I didn’t
expect this book to have such a powerful impact on me. Like many people, I like
to believe that I am always thinking critically and logically. But the reality
is that our behaviors and opinions can be influenced, and we need to be aware
of how that affects our society.
Hi Kassylla! I enjoyed reading this reflection from the book you read. I think it is outstanding to think in this "system 1 versus system 2" mindset because it really puts things in perspective. I often find that things will be the same, but my approach and mindset will be completely different once I commit to thinking a different way. Like you mentioned, I too find that analyzing a prospective customer and getting to know their desires and fears often leads to great insights and drives you to good business decision. Keep up the great work!
ReplyDeleteHi Kassylla,
ReplyDeleteYou did a great job on conducting your reflection for your book. I thought it was interesting what you learned regarding the patterns of thoughts that people have and how these things can be altered with techniques. The premise of the book was well explained too, with your breakdown of the systems between 1 and 2, and their differences.
Hello Kassaylla,
ReplyDeleteI really liked reading your reflection about reading Kahneman book. I also read this book and thought that it was very interesting. I like the exercise you created because people would get to learn about their behavior when it comes to making decisions. Additionally, I like how you mention that we think that we think logically but in reality, that is not always the case since it depends on the system we are using. Overall, I really enjoyed reading your reflection post.