Lesson 1: The Two Systems of Thinking
1. System 1 (Fast Thinking): Automatic, intuitive, and emotional thinking.
2. System 2 (Slow Thinking): Controlled, deliberate, and logical thinking.
3. Recognize the interplay: Understand how both systems interact and influence each other.
Lesson 2: Cognitive Biases and Heuristics
1. Anchoring bias: Judgments are influenced by initial, often irrelevant, information.
2. Availability heuristic: Overestimating the importance of vivid, memorable events.
3. Hindsight bias: Believing, after an event, that it was predictable.
Lesson 3: The Role of Framing and Loss Aversion
1. Framing effects: The way information is presented influences decisions.
2. Loss aversion: The pain of losses outweighs the pleasure of gains.
3. Prospect theory: Understand how people make decisions under uncertainty.
Lesson 4: The Limits of Intuition and Expertise
1. The illusion of validity: Overconfidence in intuitive judgments.
2. The illusion of control: Overestimating the ability to control events.
3. Expertise is not a guarantee: Even experts can make mistakes due to cognitive biases.
Lesson 5: How to Make Better Decisions
1. Slow down: Engage System 2 thinking to make more deliberate decisions.
2. Seek diverse perspectives: Expose yourself to different viewpoints to reduce cognitive biases.
3. Use decision-making frameworks: Utilize tools like cost-benefit analysis to structure your decision-making process.
Get this book here
Links
AMAZON(hardcopy)
