Quotes from the book "Thinking fast and slow"

Quotes from the book "Thinking Fast and Slow" - Daniel Kahneman.

The pupil of the eye is a window to the soul.

Mild physical arousal of the walk may spill over into greater mental alertness.

Self-control and deliberate thought apparently draw on the same limited budget of effort.

There are two systems in the brain, the author calls it System 1 and 2, The dumb version of those can be the subconscious and conscious mind.

• System 1 is Impulsive and intuitive;
• Mood evidently affects the operation of System 1: when we are uncomfortable and unhappy, we lose touch with our intuition.
• When uncertain, system 1 bets on an answer, and the bets are guided by experience.
• System 1 is gullible and biased to believe.
• System 1 acquires its bad reputation as the source of errors and biases. Its operative features, include WYSIATI.
• System 2 is capable of reasoning, and it is cautious.
• System 2 is in charge of doubting and unbelieving, but System 2 is sometimes busy and often lazy.

You know far less about yourself than you feel you do.

Act calm and kind regardless of how you feel.

Mind at ease puts a smile on the face.

Overconfidence: As the WYSIATI(What You See Is All There Is) rule implies, neither the quantity nor the quality of the evidence counts for much in subjective confidence.

Framing effects: Different ways of presenting the same information often evoke different emotions. The statement that "the odds of survival one month after surgery are 90%"  is more reassuring than the equivalent statement that "mortality within one month of surgery is 10%".

Base-rate neglect: consider the base rate before deciding. ex: based on personality description, you might think of a person as a farmer or librarian. You should go with the base rate, that there are more farmers than librarians.

Extreme outcomes (both high and low) are more likely to be found in small than in large samples.

Availability cascade: A nonevent that is inflated by the media and the public until it fills our TV screens and becomes all anyone is talking about.

Rewards for improved performance work better than punishment for mistakes.

The mistake appears obvious, but it is just hindsight. You could not have known in advance.

Let's not fall for the outcome bias. This was a stupid decision even though it worked out well.

Marital stability is well predicted by a formula:

    Frequency of lovemaking minus frequency of quarrels.

Whenever we can replace human judgment with a formula, we should at least consider it.

Intuition is nothing more and nothing less than recognition of pattern.

Do not trust anyone including yourself - to tell you how much you should trust their judgment.

A budget reserve is to contractors as red meat is to lions, and they will devour it.

The chances that a small business will survive for 5 years in the US are about 35%. However, the individuals who open such businesses do not believe that the statistics apply to them.

President Truman famously asked for a "one-armed economist" who would take a clear stand; he was sick and tired of economists who kept saying, "On the other hand.."

The brains of humans and other animals contain a mechanism that is designed to give priority to bad news.

The long-term success of a relationship depends far more on avoiding the negative than on seeking the positive.

A lottery ticket is the ultimate example of the possibility effect.

Highly unlikely events are either ignored or overweighted.

We tend to make decisions as problems arise, even when we are specifically instructed to consider them jointly.

Finance research has documented a massive preference for selling winners rather than losers, a bias that has been given an opaque label: The disposition effect.

It is often the case that when you broaden the frame, you reach more reasonable decisions.

When you see cases in isolation, you are likely to be guided by an emotional reaction to System 1.

Our preferences are about framed problems, and our moral intuitions are about descriptions, not about substance.

They ask you to check the box to opt out of their mailing list. Their list would shrink if they asked you to check a box to opt in.

Nature has placed mankind under the governance of two sovereign masters pain and pleasure.

This is how the remembering self works: it composes stories and keeps them for future reference.

Happiness is the experience of spending time with people you love and who love you.

The easiest way to increase happiness is to control your use of time. Can you find more time to do the things you enjoy doing?

Rationality is logical coherence-reasonable or not.

Do not interfere with the individual's right to choose, unless the choices harm others.

An organization is a factory that manufactures judgments and decisions.

Happy reading !!!