Thinking, Fast and Slow - Deepstash
Behavioral Economics, Explained

Learn more about books with this collection

How to make rational decisions

The role of biases in decision-making

The impact of social norms on decision-making

Behavioral Economics, Explained

Discover 52 similar ideas in

It takes just

7 mins to read


“Nothing in life is as important as you think it is, while you are thinking about it”



10K reads

Understanding 2 Systems

Understanding 2 Systems

System 1 comprises the oldest parts of the brain. It operates automatically and involuntarily. This system is always functioning and is responsible for most of the day-to-day activities. It is also responsible for our reactions to danger, novelty, and intuition.

System 2 allocates attention and completes tasks that require effort. System 2 is a newly evolved part of the brain, and only humans have a highly developed prefrontal cortex.


6.11K reads

Bat and Ball Problem

Bat and Ball Problem

Try to solve this problem -

"A bat and a ball cost $1.10 in total. The bat costs $1.00 more than the ball. How much does the ball cost?"
If you say $1 for the bat and 10 cent for the ball, then it's wrong because you just used the system - 1.
(Answer is given in the last idea of the article.)


6.55K reads


“Our comforting conviction that the world makes sense rests on a secure foundation: our almost unlimited ability to ignore our ignorance.”



6.11K reads

Anchoring Effect

Anchoring Effect

Anchors are arbitrary values that we consider for an unknown quantity before encountering that quantity.

Anchors are known to influence many things, including the number of money people are willing to pay for products they have not seen. 

So before choosing the anchors, just research about the thing then decide.


4.83K reads

Availability Bias

The bias of availability happens when we give too much weight to recent evidence or experience.

If we don’t check for the ‘Availability Bias’ (or what psychologists call the mere‐exposure effect) prior to an important decision, then our preference will be based on environmental conditioning.

So before each decision just ask “Is this the best option or just the option I've been frequently exposed to?”


4.09K reads

Daniel Kahneman

“A reliable way to make people believe in falsehoods is frequent repetition because familiarity is not easily distinguished from truth. Authoritarian institutions and marketers have always known this fact.”



4.41K reads

Framing Effect

Imagine that there is an outbreak of a deadly disease that will kill 600 people and you must choose between the two options -  

  • Option 1: Guarantees that 200 people will live.
  • Option 2: Provides a one-third probability that all 600 people will live, but it also comes with a 1/3 probability that no one will survive.

You may choose option 1 due to loss aversion. If you think through the choices, you can see that the probabilities of each are identical. This is called the framing effect.


3.75K reads


“Intelligence is not only the ability to reason; it is also the ability to find relevant material in memory and to deploy attention when needed.”



4.12K reads

Status Quo Bias

System 1 defaults to choices that maintain the status quo because System 1 psychologically weighs losses twice as much as gains (loss aversion). System 1 is emotionally attached to objects it owns or invests in (the endowment effect) and overvalues the status quo.

You can ask yourself - “What opportunities do I lose by maintaining the status quo?” (or, “If I continue to say yes to this, what am saying no to?”)


3.24K reads

Loss Aversion

Ask yourself “If I flipped a coin and could lose $100 on tails or win $150 on heads, would you take the bet?” Did you feel a slight hesitation to the gamble? Most people do, even though it’s a reasonable bet to take.

Losses loom larger than gains - relative to a reference point, a loss is more painful than a gain of the same magnitude.


3.25K reads

Tunnel Vision Bias

System 1 loves to use limited information to form quick judgments and then block out conflicting information. The author Daniel Kahneman calls it W‐Y‐S‐I‐A‐T‐I (What You See Is All There Is).

Kahneman explains that System 1 sees two or three pieces of information and then “infers and invents causes and intentions then neglects ambiguity and suppresses doubt.”

Just try to ask “Why might the opposite be true?”


3.15K reads

Confirmation Bias

Confirmation Bias

Within WYSIATI, people will be quick to seize on limited evidence that confirms their existing perspective. And they will ignore or fail to seek evidence that runs contrary to the coherent story they have already created in their mind.

Just ask yourself - "Why do we have certain beliefs or perspectives?"


2.9K reads


“The confidence that individuals have in their beliefs depends mostly on the quality of the story they can tell about what they see, even if they see little.”



3.93K reads

Answer To Bat & Ball Problem

Answer To Bat & Ball Problem

In this type of case you just need to use your system 2 and spend some time with it. And you will get the answer as $1.05 for bat and 5 cent for the ball.

Now the ball is $1 more than the bat.


4.61K reads



A learner who loves to share wisdom on personal growth, happiness, and success on Deepstash. Topics include motivation, habits, goals, and mindset. Believes that everyone can achieve their dreams with the right attitude and action.

Curious about different takes? Check out our Thinking, Fast and Slow Summary book page to explore multiple unique summaries written by Deepstash users.

More like this

Thinking, Fast and Slow

3 ideas

Thinking, Fast and Slow

4 ideas

Thinking, Fast and Slow

37 ideas


Explore the World’s

Best Ideas

200,000+ ideas on pretty much any topic. Created by the smartest people around & well-organized so you can explore at will.

An Idea for Everything

Explore the biggest library of insights. And we've infused it with powerful filtering tools so you can easily find what you need.

Knowledge Library

Powerful Saving & Organizational Tools

Save ideas for later reading, for personalized stashes, or for remembering it later.

# Personal Growth

Take Your Ideas


Organize your ideas & listen on the go. And with Pro, there are no limits.

Listen on the go

Just press play and we take care of the words.

Never worry about spotty connections

No Internet access? No problem. Within the mobile app, all your ideas are available, even when offline.

Get Organized with Stashes

Ideas for your next work project? Quotes that inspire you? Put them in the right place so you never lose them.


2 Million Stashers


5,740 Reviews

App Store


72,690 Reviews

Google Play

Shankul Varada

Best app ever! You heard it right. This app has helped me get back on my quest to get things done while equipping myself with knowledge everyday.

Sean Green

Great interesting short snippets of informative articles. Highly recommended to anyone who loves information and lacks patience.


Don’t look further if you love learning new things. A refreshing concept that provides quick ideas for busy thought leaders.

Ashley Anthony

This app is LOADED with RELEVANT, HELPFUL, AND EDUCATIONAL material. It is creatively intellectual, yet minimal enough to not overstimulate and create a learning block. I am exceptionally impressed with this app!

Ghazala Begum

Even five minutes a day will improve your thinking. I've come across new ideas and learnt to improve existing ways to become more motivated, confident and happier.

Giovanna Scalzone

Brilliant. It feels fresh and encouraging. So many interesting pieces of information that are just enough to absorb and apply. So happy I found this.

Laetitia Berton

I have only been using it for a few days now, but I have found answers to questions I had never consciously formulated, or to problems I face everyday at work or at home. I wish I had found this earlier, highly recommended!

Jamyson Haug

Great for quick bits of information and interesting ideas around whatever topics you are interested in. Visually, it looks great as well.

Read & Learn

20x Faster





Access to 200,000+ ideas

Access to the mobile app

Unlimited idea saving & library

Unlimited history

Unlimited listening to ideas

Downloading & offline access

Personalized recommendations

Supercharge your mind with one idea per day

Enter your email and spend 1 minute every day to learn something new.


I agree to receive email updates