Joosr

A Joosr Guide to Thinking, Fast and Slow by Daniel Kahneman

Alexander Sokolovhas quoted3 years ago
your decision making and judgment always objective and practical?
The answer is a resounding “No!” In fact, our mind is conditioned to be optimistic even when it is not warranted. When undertaking a very risky endeavor, we may remain confident because of this misguided optimism. It clouds our rational ability to gauge risks, learn from past mistakes, or seek advice from people who have expertise in the area. This delusional “feel good” optimism keeps us from investing enough time in planning the endeavor. It gives us the false impression of having a great deal of control over a situation whilst, in fact, this may not at all be true.
b4047031363has quoted3 months ago
We must force our System 2 into action to assess the actual facts and figures of our decisions, rather than letting our emotional responses take control. Only then will we overcome the influence of framing on our decisions.
b4047031363has quoted3 months ago
Your System 1 thinking process is keeping accounts in your head—calculating your loss, gain, risk and reward, and attaching emotions to the various outcomes. Whether it is out of fear of regret or to give an impression of expertise or simply down to delusional optimism, our emotions tend to color our decisions significantly.
b4047031363has quoted3 months ago
Understanding how and when this happens gives us the power to curb this reflexive tendency of ours and make better, more logical, more accurate decisions.
b4047031363has quoted3 months ago
While this lack of objective thought is dangerous in many situations, subjectivity helps us make good decisions or judge correctly in others.
b4047031363has quoted3 months ago
The memory of the experience that is left behind manages to color the experience itself in every case. In particular, the final portion of the experience is what stays in our mind, and this is what determines how we view that experience as a whole. Importantly, this final conclusion that we draw about the experience influences how we make future decisions. In effect, these future decisions are being made on the basis of our memories of the experiences and not the actual experiences themselves.
b4047031363has quoted3 months ago
is because your mind cannot stitch together all of your life’s past experiences, your present situation, and your mental perceptions into one cohesive picture that allows you to weigh up whether you are happier or sadder at the given moment.
b4047031363has quoted3 months ago
The brain tends to focus on what we want and where we expect to end up in the future, and this influences our decision making.
b4047031363has quoted3 months ago
evaluation stage is when we choose the prospect that offers the maximum value.
b4047031363has quoted3 months ago
The prospect theory holds that decision making happens in two stages: editing and evaluation. The editing stage is when the prospects are analyzed, and it is here that presentation can have a massive impact.
b4047031363has quoted3 months ago
may make different decisions based on the same facts depending on how the choice is formulated. For example, an investor who is given a choice
b4047031363has quoted3 months ago
inherent fear that we are losing something motivates us to offset that loss by securing a higher-than-fair value.
b4047031363has quoted3 months ago
Prospect theory states that: 1) the value of money can be assessed only on the basis of every individual’s reference point; 2) every individual is not sensitive to an identical degree about monetary loss; and 3) no one likes to lose money.
b4047031363has quoted3 months ago
Not everything that happens makes sense, nor is it possible to provide a rational explanation for everything. But our mind tries to create a back-story for every situation to make it more believable.
b4047031363has quoted3 months ago
typical human response is to choose the easiest way when confronted with a situation that requires thought, that is, evokes our System 1 thought process.
b4047031363has quoted3 months ago
Another influence that impacts our thought processes is our emotional response
b4047031363has quoted3 months ago
mind responds to situations based on our previous experiences.
b4047031363has quoted3 months ago
System 1 is on auto-respond mode all the time, while System 2 needs to be called into action with some effort. System 1 gives the signals (impressions, feelings, gut instinct) based on which System 2 formulates set ideas and beliefs. When System 1 finds itself unable to handle a problem, it drafts in System 2 to help.
Mahmoud Ezzat Kheizaranhas quoted4 months ago
Another influence that impacts our thought processes is our emotional response.
Mahmoud Ezzat Kheizaranhas quoted4 months ago
Our mind responds to situations based on our previous experiences.
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