Thinking, Fast and Slow

Review Thinking, Fast and Slow 

by DANIEL KAHNEMAN

Description

Internationally acclaimed book, Thinking, Fast and Slow is a certified best-seller and multi-awarded book since its publication in 2011. It was hailed as one of “The Wall Street Journal’s Best Nonfiction Books of the Year 2011”, also one of “The Economist’s 2011 Books of the Year”, a “Globe and Mail Best Books of the Year 2011”, New York Times Book Review’s one of the ten best books of 2011, and winner of the National Academy of Sciences Best Book Award in 2012.

Needless to say, the accolades of the book speak volumes to its soundness and significance as a material in the finance sector. Primarily, the book proposes a notion that there are two systems that drive the way people think: the Fast and the Slow. As Daniel Kahneman discusses his theory, he supplements it with practical wisdom to be applied in real-world scenarios. 

About the Author

Daniel Kahneman is a professor of Psychology Emeritus at Princeton University. He is a recipient of the 2002 Nobel Prize in Economic Sciences for his contribution to decision-making. 

Table of Contents

Kahneman’s masterpiece is carefully laden and plotted with the following contents:

Part I: Two Systems

1. The Characters of the Story
2. Attention and Effort
3. The Lazy Controller
4. The Associative Machine
5. Cognitive Ease
6. Norms, Surprises, and Causes
7. A Machine for Jumping to Conclusions
8. How Judgments Happen
9. Answering an Easier Question

Part II: Heuristics and Biases

1. The Law of Small Numbers
2. Anchors
3. The Science of Availability
4. Availability, Emotion, and Risk
5. Tom W’S Specialty
6. Linda: Less is More
7. Causes Trump Statistics
8. Regression to the Mean
9. Taming Intuitive Predictions

Part III: Overconfidence

1. The Illusion of Understanding
2. The Illusion of Validity
3. Institutions Vs. Formulas
4. Expert Intuition: When Can We Trust It?
5. The Outside View
6. The Engine of Capitalism

Part IV: Choices

1. Bernoulli’s Errors
2. Prospect Theory
3. The Endowment Effect
4. Bad Events
5. The Fourfold Pattern
6. Rare events
7. Risk Policies
8. Keeping Score
9. Reversals
10. Frames and Reality

Part V: Two Selves

1. Two Selves
2. Life as a Story
3. Experienced Well-being
4. Thinking About Life

Posted by Anastasia