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Thinking, Fast and Slow
How We Make Decisions, And How To Make
The Right Ones
Not my ideas...
Daniel Kahneman
Senior Scholar,
Princeton University
Nobel Prize for
Economics, 2002
A Tale Of Two Systems
System A
Fast, intuitive, subconscious
System B
Slow, analytical, directed
System A
Always working
Looking for patterns
Biases
System B
Analytical
Less biased
Can be overwhelmed
Lazy
Example
A bat and a ball together costs £1.10
The bat costs £1 more than the ball
How much does the ball cost?
The Answer...
System A: 10p
System B: 5p
Priming
Assemble sentences using four words out of
five
finds he it yellow instantly
grey was round hair his
Cognitive Ease
Adolf Hitler was born in 1892
Adolf Hitler was born in 1887
Familiarity
kadirga
saricik
biwonjni
nansoma
iktitaf
Halo Effect
Alan: intelligent, industrious, impulsive, critical,
stubborn, envious
Ben: envious, stubborn, critical, impulsive,
industrious, intelligent
Anchoring
Was Gandhi more or less than 141 years old
when he died?
How old was Gandhi when he died?
Anchoring With Irrelevant Information
Rigged wheel of fortune
Always 10 or 65
Write down the number
“Is the percentage of African
nations in the UN higher or
lower than this?”
“What is the percentage?”
So… What Can We Do?
You can’t stop System 1
You shouldn’t stop System 1
Be aware of System 1 biases
Watch Out For Biases
Priming
Cognitive Ease
Familiarity
Halo Effect
Anchoring
Buy The Book
Learn more about Rawnet

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Editor's Notes

  1. Look at how we make decisions Automatic processes evolved over millenia Not always right - optimised for survival Learn to be aware of when they may be wrong
  2. Tested on thousands of students At Princeton, MIT and Harvard: more than 50% said “10p” Other universities: more than 80% said 10p
  3. Students at New York University aged 18-22 Asked to assemble sentences using four words out of five One group: half sentences have “old people” words in Afterwards, walk down corridor for another test Walk took statistically significantly longer in the old group
  4. Hands up who believes which Actually born 1889, but most believe the bold font - easier to read
  5. Front page advert in University of Michigan student newspaper Frequency: 1, 2, 5, 10, 25 Ask for impression of each word: “something good” or “something bad” More frequent = more favourable
  6. Who would you most like to work with?
  7. Average among subjects who saw 10: 25% Average among students who saw 65: 45%