Thinking Fast and Slow

Daniel Kahneman’s work investigates the complex machinery of the human mind by distinguishing between System 1, which operates automatically and intuitively, and System 2, which handles effortful, logical reasoning. The text explores how cognitive biases and heuristics—mental shortcuts used to simplify complex problems—often lead to predictable errors in judgment, such as anchoring and overconfidence. Through various experiments, the author demonstrates that people frequently ignore statistical base rates and are heavily influenced by how information is framed. The research also highlights the tension between our experiencing self and remembering self, showing that our memories of events are often distorted by the peak-end rule. Ultimately, these findings challenge the traditional rational-agent model in economics, suggesting that human choice is shaped more by associative coherence and emotion than by pure logic.