Thinking Fast and Slow

Daniel Kahneman is a psychologist who won the Nobel Prize in 2002 for contributions to Economics. He has combined his insights of psychology and applied them to Economics and created the fascinating subject called Behavioral Economics. He currently is professor emeritus of psychology and public affairs at Princeton University.Thinking Fast and Slow introduces us to the two kinds of thinking we use - System1 and System 2. System 1 is the part of our thinking that is fast and intuitive. We use System 1 for almost all of our day-to-day actions and decisions, like brushing our teeth or talking to friends. It is the mind’s autopilot, so to speak, and we are essentially not aware of it. System 2, the slow aspect of our thinking that deliberates and uses deductive reasoning. System 1 is fast; it's intuitive, associative, metaphorical, automatic, impressionistic, and it can't be switched off. Hence it has a tendency to use broad heuristics or rules of thumb to go through life.If you were asked to find the answer to 17 x 23 as you are driving a car in high speed and around a sharp bend (please do not do it) you will discover it is impossible to do it without focusing entirely on the math and involving System 2 thinking. That is the slow, deliberate act of thinking.If you are asked to count the number of occurrences of the letter a in this article, you have to use System 2 or even when you tell someone your phone number. We always tend to think of ourselves as having only System 2 thinking - deliberate, rational and without bias. We are mistaken. Watch this video for a great example:The next time you are walking with a friend ask that person to compute 23 x 75 and to do so immediately. The person will stop. This mental effort uses the same resources as the act of act of exercising self control. So if you are asked to remember a seven digit number like 5924618 for the next two minutes and also have to choose between a bar of chocolate and a healthy salad, it is hard to choose the salad. If you were to write an important exam, make sure you are well rested and not hungry when you write the test - you will do better. That will prevent System 2 from getting distracted. If you have exercised self control by eating virtuous food and saying no to the chocolates, you will give up sooner while attempting challenging mental tasks. Mental choices that involve conflict deplete your self control. If you have spent the whole day in office pretending to smile at your annoying colleague you are likely to be extra snappy at home that evening. You are more likely to be influenced by commercials when you are tired and depleted. Now you know why they air those tele-shopping programs at night when you are REALLY tired.Do not try to solve this puzzle. But listen to your intuition:A bat and ball cost $1.10. The bat costs one dollar more than the ball. The cost of the ball is $___The number that came to your mind is 10 cents. That is your system 1 responding. System 2 is lazy. It needs to be nudged to be put to work. Impulsive people find it hard to delay gratification and often make poor choices. Those who are able to resist the System 1 thinking show higher measure of executive control in cognitive tasks. They can reallocate their attention effectively. There is a close correlation between being able to control your attention and your ability to control your emotions. Fortunately this too can be learned.What do you think of Alan and Ben?Alan: Intelligent - industrious - impulsive - critical  stubborn - enviousBen: envious - stubborn - critical - impulsive - industrious - intelligentMost view Alan more favorably. The initial traits list changes the meaning of the traits that appear later. So the sequence in which we observe the characteristics of a person matters.System 1 creates thumb rules that make it easy for us to go through the routine tasks of life and its ability to judge threats quickly keeps us safe. Yet if we do not engage System 2 thinking then we will be victims of bias and stereotypes.I could go on and on about all the cognitive biases that we are victims of. Kahneman writes with the skill of a storyteller as he lures you to the unexplored corners of your mind. The anecdotes, the research, the little tricks in every chapter make this book unputdownable. the chapters are short and put in simple language.  Some are easier to read than others (System 1 and 2 at work I suspect).I would give this book a 5 star rating if I were to be guided by System 1. Then I told myself that let me not get carried away and use System 2 to rate the book. In that case I would give it a 5 star rating. That is easy.The most influential book I have read this year - for sure. Highly recommended.----------------Watch Kahneman in this video