27A: Reading Reflection No.3

Book:  Thinking fast and slow by Daniel Kahneman

What was the general theme or argument of the book?
·         This book explains the rational and irrational thinking of human beings. Daniel Kahneman stated that humans have two systems to make decisions:
o   System 1: the fast thinking. This kind of thinking is the one we use the most in our daily lives.
o   System 2: the slow thinking. This is the analytical, problem solving thinking. System 2 activates when system 1 is unable to provide an answer.
In addition, Kahneman explains system 1 is the reason the human being make mistakes because it is based on available evidence and often neglects the absent evidence. Kahneman continues to explain the different judgement errors humans make such as the law of small numbers, anchoring bias, overconfidence, hindsight bias, and others.
How did the book, in your opinion, connect with and enhance what you are learning in ENT 3003?

·         This book connects with ENT3003 because it explains how humans make decisions and behave. As an entrepreneur, we have to make decisions that are the most beneficial for our company and the people, and these two systems possibly affect how we take such decisions. Furthermore, this book enhances what I’m learning in ENT3003 because it helps me to understand humans’ decision making-styles. As I learned in another class, there are four decision making styles which are analytical, conceptual, directive, and behavioral. I believe this book enables me to understand how the two systems influence each style and which one I want to follow for my business venture.

If you had to design an exercise for this class, based on the book you read, what would that exercise involve?
·         I would have students to follow their actions throughout a day and analyze if they believe they utilize system 1 or system 2 in a blog.
What was your biggest surprise or 'aha' moment when reading the book? In other words, what did you learn that differed most from your expectations?

·         This book was definitely mind blowing because it allowed me to understand the difficulty of using the system 2. I used to think I was an analytical person but Kahneman explains that even if you are consciously aware of the judgment errors and biases, it is really hard to avoid them. The rational model (system 2) is how we expect to act, but humans tend to highly use system 1 because system 2 requires complete information and logical, unemotional analysis which are unrealistic expectations. 

Comments

  1. Hello again Nicolas! I think you made a good choice by choosing this book for your last reading reflection of the semester. It seems like a very interesting book because it gives you different perspective on how people behave and think. Definitely it relates to what we have learned from the class so far and the exercises we have done in the semester. Great post!

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