In 2002, Daniel Kahneman won the Nobel in economic science. But that’s not what surprised the world. What went on to make heads turn was the fact that Kahneman is a psychologist who set out to dismantle a theory much loved by economic theorists: that arch-rational decision maker known as Homo economicus.
Human irrationality is something that fascinated Kahneman. Thinking, Fast and Slow” is a rich book: lucid, profound, full of intellectual surprises and self-help value. Through this book, the author takes the reader through a tour of the mind and explains the two systems that drive the way we think.
System 1 is fast, intuitive, and emotional; System 2 is slower, more deliberative, and more logical. The impact of overconfidence on corporate strategies, the difficulties of predicting what will make us happy in the future, the profound effect of cognitive biases on everything from playing the stock market to planning our next vacation—each of these can be understood only by knowing how the two systems shape our judgments and decisions.
The book is engaging in the sense that there is a constant lively conversation and revelations where the author talks about why we cannot trust our intuitions and how we can tap into the benefits of slow thinking. He offers practical and enlightening insights into how choices are made in both our business and our personal lives—and how we can use different techniques to guard against the mental glitches that often get us into trouble.
The detail in which the author has broken down human psychology makes it a contemporary classic, an essential book that has changed the lives of millions of readers.