Chapter 1
Decision Making
There’s a lot of randomness in the decisions that people make.
— Daniel Kahneman
System 1 vs. System 2 thinking
Our minds use fast, intuitive judgments (System 1) and slower, logical reasoning (System 2).
Knowing which mode you’re using helps spot bias and think more clearly.
Bounded rationality is real
Herbert Simon showed decision-makers don’t have full information or time.
Instead they seek a satisfactory (not perfect) solution.
Emotional shortcuts (affect heuristic)
Our gut feelings strongly influence how we assess risks and benefits, even when logic suggests otherwise.
Choice overload hurts
Barry Schwartz warns that too many options can lead to paralysis or regrets.
Limiting choices often improves outcomes.
Overconfidence skews decisions
Kahneman found that people consistently overestimate their certainty, even experts do.
Accept uncertainty to make clearer choices.
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