Key Facts and Insights:
- The human mind operates in two distinct ways, classified as System 1 and System 2.
- System 1 is fast, instinctive, and emotional, while System 2 is slow, deliberative, and logical.
- The book emphasizes the importance of understanding the interaction between these two systems in shaping our judgments and decision-making.
- Our judgments and decisions are often influenced by cognitive biases that arise from reliance on System 1 thinking.
- The book discusses several heuristic principles and biases, such as the availability heuristic, anchoring effect, and overconfidence bias.
- Kahneman introduces the concept of “prospect theory,” challenging the...