Main Ideas

  • there are 2 “thinking systems” in our minds:
    • the first is fast, automatic
    • the second is slow, logical
  • anchoring: when you lack sufficient data to guess the value of something, you tend to hover around a pre-offered number
  • availability: a sort of confirmation bias. We tend to believe unlikely things have a high chance of happening because we keep looking at news/media portraying them
  • loss aversion: if they have to risk, humans prefer not losing to winning
  • framing: How you present a situation affects your interpretation and feelings. Essentially looking at the glass half empty or half full
  • sunk costs: people believe because they’ve already spent money/time on something, they might as well see it through or continue. That is a mistake. Past events can’t determine your future course of action