In the international bestseller, Thinking, Fast and Slow, Daniel Kahneman, the renowned psychologist and winner of the Nobel Prize in Economics, takes us on a groundbreaking 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.
Engaging the reader in a lively conversation about how we think, Kahneman reveals where we can and 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. Winner of the National Academy of Sciences Best Book Award and the Los Angeles Times Book Prize and selected by The New York Times Book Review as one of the ten best books of 2011, Thinking, Fast and Slow is destined to be a classic.
Nobel laureate Richard H. Thaler has spent his career studying the radical notion that the central agents in the economy are humans—predictable, error-prone individuals. Misbehaving is his arresting, frequently hilarious account of the struggle to bring an academic discipline back down to earth—and change the way we think about economics, ourselves, and our world.
Traditional economics assumes rational actors. Early in his research, Thaler realized these Spock-like automatons were nothing like real people. Whether buying a clock radio, selling basketball tickets, or applying for a mortgage, we all succumb to biases and make decisions that deviate from the standards of rationality assumed by economists. In other words, we misbehave. More importantly, our misbehavior has serious consequences. Dismissed at first by economists as an amusing sideshow, the study of human miscalculations and their effects on markets now drives efforts to make better decisions in our lives, our businesses, and our governments.
Coupling recent discoveries in human psychology with a practical understanding of incentives and market behavior, Thaler enlightens readers about how to make smarter decisions in an increasingly mystifying world. He reveals how behavioral economic analysis opens up new ways to look at everything from household finance to assigning faculty offices in a new building, to TV game shows, the NFL draft, and businesses like Uber.
Laced with antic stories of Thaler’s spirited battles with the bastions of traditional economic thinking, Misbehaving is a singular look into profound human foibles. When economics meets psychology, the implications for individuals, managers, and policy makers are both profound and entertaining.
Shortlisted for the Financial Times & McKinsey Business Book of the Year Award
You believe you are a rational, logical being who sees the world as it really is, but journalist David McRaney is here to tell you that you're as deluded as the rest of us. But that's OK- delusions keep us sane. You Are Not So Smart is a celebration of self-delusion. It's like a psychology class, with all the boring parts taken out, and with no homework.
Based on the popular blog of the same name, You Are Not So Smart collects more than 46 of the lies we tell ourselves everyday, including:Dunbar's Number - Humans evolved to live in bands of roughly 150 individuals, the brain cannot handle more than that number. If you have more than 150 Facebook friends, they are surely not all real friends. Hindsight bias - When we learn something new, we reassure ourselves that we knew it all along. Confirmation bias - Our brains resist new ideas, instead paying attention only to findings that reinforce our preconceived notions. Brand loyalty - We reach for the same brand not because we trust its quality but because we want to reassure ourselves that we made a smart choice the last time we bought it.
Packed with interesting sidebars and quick guides on cognition and common fallacies, You Are Not So Smart is a fascinating synthesis of cutting-edge psychology research to turn our minds inside out.