Daniel Kahneman’s Thinking, Fast and Slow is the starting point for anyone who wants to stop and really learn about how we think and make decisions. It’s an incredibly information rich book, it’s certainly not an easy read but it is most definitely a worth while one.
It collects decades of research into how we make decisions, how we consider risk and gain and how we use shortcuts that are sometimes great but can often be terrible.
It starts by discussing System 1 and System 2, two models of thought. System 1 is the hasty and instinctual prone to taking shortcuts and making lazy decisions. System 2 is the more rational, willing to spend effort to make important decisions. Kahneman discusses the differences between these two modes, and shows us when System 1 can make good decisions, and where it can fall down.
We then move on to thinking about Humans and Econs. Traditional economic theory suggests that people always make rational decisions. Kahneman shows us times we may not behave rationally, when we are Humans and not the Econs of rational theory.
Finally, he discusses the differences between the remembering self and experiencing self. In this approach, we see that people are often willing to experience greater overall discomfort if the end of it is more pleasant. We remember the end of the experience more clearly, or we recall the peaks more than the average. It’s a surprising insight.
The book is brilliantly researched, each insight is backed up with rock solid studies that are brilliantly footnoted. Every chapter covers one of these major insights, compressed down into less than a dozen pages. There are regular ‘Speaking of’ sections that give great short practical views into each of the complex topics.
Take the time to drink this book in. Don’t rush through it, but do rush to buy it!