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35,000 decisions a day
On average we all have about 35,000 decisions to make each day. These differ in difficulty and importance. It could be you taking a step to your left or right when talking. Or deciding to take the stairs or elevator. But they all hit you on a daily basis. If you had to consciously process all these decisions your brain would crash.
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We are all irrational human-beings
Above all, the most important to remember is that we all have to accept that we are irrational human beings. Almost all of the time. Even if you think you’re not. Somehow we can accept our irrationality. Or at least understand it when it is explained to us. But we keep making the same mistake. When trying to influence someone, we tend to forget they are irrational too. We so often try to convince somebody with rational arguments or facts. We love to tell someone about the benefits of our products or services or ideas.
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Decisions are based on short-cuts
However, understand that the decision of the person you’re trying to convince isn’t based on this rational information. It’s based on system 1 shortcuts. What the work of Kahneman shows is that people struggle with statistics. And cannot reason probable outcomes of their decisions. A second very important insight from the work of Kahneman is that our decisions are driven by heuristics and biases. We’ll dive deeper into those in the next two sections.
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To sum it up
To sum it up, by understanding Kahneman you can understand human decision-making. Because if you understand human-decision making, you can understand human or customer behaviour. You can see how we are predictably irrational. Dan Ariely wrote a beautiful book with this title, which I can highly recommend. However, we just have to accept our own irrationality. And understand that if we want to convince someone or try to nudge them into certain behaviour, that they are just irrational too.
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IDEAS CURATED BY
CURATOR'S NOTE
"Thinking, Fast and Slow" is all about how two systems — intuition and slow thinking — shape our judgment, and how we can effectively tap into both. Using principles of behavioral economics, Kahneman walks us through how to think and avoid mistakes in situations when the stakes are really high.
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Curious about different takes? Check out our Thinking, Fast and Slow Summary book page to explore multiple unique summaries written by Deepstash users.
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