This document summarizes key points from Daniel Kahneman's book "Thinking, Fast and Slow". It discusses the two systems of thought - system 1 thinks fast and automatically using mental shortcuts while system 2 thinks slowly and deliberately. It describes cognitive biases like anchoring, overconfidence and regression to the mean that can cause irrational and incorrect judgments. It suggests applying this knowledge can help with design, workplaces and everyday life by recognizing biases and avoiding incorrect intuitions.
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"Thinking, Fast and Slow" Applications
1. Thinking, Fast and Slow
By Daniel Kahneman
Amanda Bentley
How To Apply the Book to Design, the Workplace, and Everyday Life
2. Human Irrationality
People like to think their intuition is correct
or they are otherwise able to logically
analyze every situation
Thinking, Fast and Slow | Amanda Bentley
3. When Intuition Fails
People tend to use shortcuts and rely on
instinct when faced with a problem.
Heuristics = mental shortcuts
Thinking, Fast and Slow | Amanda BentleyThinking, Fast and Slow | Amanda Bentley
4. System 1
This is the system that thinks fast.
2 x 2 = ?
Thinking, Fast and Slow | Amanda Bentley
5. System 2
This is the system that thinks slowly.
37 x 84 = ?
Thinking, Fast and Slow | Amanda Bentley
6. Judgments
We jump to conclusions to save time and
effort.
This is only efficient when the conclusion is
likely correct and the cost of an
occasional mistake is acceptable.
Thinking, Fast and Slow | Amanda Bentley
7. How Your Mind Works, with Daniel Kahneman
Thinking, Fast and Slow | Amanda Bentley
8. Biases
Prejudice in favor or against one thing,
person, or group compared with another,
usually in a way considered to be unfair
Thinking, Fast and Slow | Amanda Bentley
9. Anchors
Occurs when people consider a particular
value for an unknown quantity before
estimating that quantity.
Thinking, Fast and Slow | Amanda Bentley
10. Regression to the Mean
When poor performance is followed by
improvement, and good performance is
followed by deterioration.
Thinking, Fast and Slow | Amanda Bentley
11. Overconfidence
The sense-making System 1 makes us see
the world as more tidy, simple, predictable,
and coherent than it really is.
So we think that we can predict the future.
Thinking, Fast and Slow | Amanda Bentley
12. The Illusion of Validity
Declarations of high confidence tell you that
an individual has constructed a coherent
story in his or her mind, not necessarily that
the story is true
Thinking, Fast and Slow | Amanda Bentley
13. Intuition vs. Formulas
Experts may be inferior because they try to
be clever, think outside the box, and
consider complex combinations of
features.
This actually reduces validity.
Thinking, Fast and Slow | Amanda Bentley
14. When Can We Trust Intuition?
Confidence does not imply truth.
System 1 suppresses doubt and evokes
ideas that are compatible with the current
dominant story.
Thinking, Fast and Slow | Amanda Bentley
15. Thinking About Life
Affective forecasting is the forecast of one's
personal state in the future. An error
happens when you think statistics don't
apply to you
Thinking, Fast and Slow | Amanda Bentley
16. Benefits of Recognizing Biases
Better design.
More efficient workplaces.
Happiness in everyday life.
Thinking, Fast and Slow | Amanda Bentley
17. Applying the Knowledge
Design: Making something that doesn’t just
look nice, but is actually beneficial.
The Workplace: Anchoring in negotiations
and regression to the mean in daily work.
Everyday: Avoiding incorrect judgments of
others.
Thinking, Fast and Slow | Amanda Bentley
Try to make connections with something we know when faced with the unknown
We often answer difficult questions by actually answering something simpler, without noticing the substitution
System 1 is responsible for these heuristics
When neither an expert answer or a heuristic answer comes to mind, we resort to slow, effortful thinking (system 2)
Operates automatically
No effort or voluntary control
Can easily answer simple questions that have been learned ie simple math
Provides attention to effortful mental activities
Associated with choice and concentration
When you see something that you have no heuristics for (ie complicated math problem) you have to really think
Judgment heuristics, or system 1, are used when we need to quickly make an assessment
For example, when we see someone who is standing up straight with their hands on their hips, we equate that with confidence (Amy Cudy vid)
More explanation on how we make judgments
Does anyone know of any human biases?
Bandwagon effect (something is right because everyone is doing it), confirmation bias (finding facts to back up our own beliefs), framing effect (diff conclusions from the same info depending on how its framed)
Estimates stay close to the number that the people considered
System 2 makes people move their estimates away from the considered #, and it is effortful
Anchoring and adjusting- anchor to a #, assess if it’s too high or too low, and go from there (ie in negotiation)
Success = talent + luck
ie performing on a test: study a fair amount, have good luck, get a good grade, you are more likely to do worse on your next test
In the workplace, regression to the mean could cause people to plateau in their jobs or improve if given negative feedback
Everyone assumes they are less biased than they really are
Makes us move faster and think less
when asked to evaluate the same information twice, we frequently give different answers- unnoticed stimuli effects system 1
We can create reliable formulas for ourselves by assigning equal weight to all predictors of an outcome- ie Mary with her visa vs. equally qualified person with another possible issue
Most people avoid formulas because we prefer the natural over the artificial
Skilled intuition comes from learning regularities of an environment that are generally predictable- ie tests, workplace policies
The score you assign to your life is determined by a small sample of highly available ideas, and not a careful weighing of the domains of your life.
Setting goals that are too difficult to attain lead to unhappiness
Overall: avoid overconfidence (not to be confused with not having confidence)
This illusion can cause people to be wrong about their present state of well-being as well as the happiness of others, and about their own happiness in the future.
The score you assign to your life is determined by a small sample of highly available ideas, and not a careful weighing of the domains of your life.
Setting goals that are too difficult to attain lead to unhappiness
