Intuitive and reflective thinking - Deepstash
Behavioral Economics, Explained

Learn more about personaldevelopment 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

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Intuitive and reflective thinking

Intuitive and reflective thinking

  • Intuitive and automatic: This kind of thinking is quick and feels instinctive. You duck when a ball is thrown at you unexpectedly.
  • Reflective and rational: This thinking is deliberate and self-conscious. You use this system when you have to decide which route to take for a trip.

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The need for nudge theory: the Japanese example

Japanese train stations use nudge theory.

  • Blue lights improve the mood of commuters and reduce suicide attempts.
  • The door closing jingle lighten the highly stressed peak hour commute.
  • A high-frequency tone at station entrances reduce teenage loiteri...

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A choice architect

The task of a choice architect is to organize the context in which people make decisions.

Changing the context in which people make choices can make desired behaviors easier to accept.

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Why people comply when they are nudged

Why people comply when they are nudged

Biases are hardwired and difficult to change. To change behavior, attention is not paid to countering the problematic thoughts, judgments, or predictions. Instead, it has been directed to changing the behavior in the form of incentives or "nudges."

For example, employe...

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The nudge theory

The nudge theory

Behavioral economists show that when humans make quick decisions under pressure, it is based mostly on intuition. They are unconsciously guided by biases and psychological fallacies.

The nudge theory suggests making subtle interventions to nudge people to make certain choi...

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damien_i

"Imagination is more important than knowledge." - Albert Einstein

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The two thinking styles

Intuitive thinking is described as automatic, fast, and subconscious. Analytic thinking, on the other hand, is slow, logical, conscious and deliberate. Analytic and intuitive thinking are not opposites. They are complementary and can work in concert.

Even groundbreaking scient...

The Two-System Brain

The Two-System Brain

Daniel Kahneman, Nobel prize winner, explains how our mind has 2 modes:

  • Your deliberate system is responsible for sophisticated functions such as reasoning, self-control, and forward-thinking. It excels in handling anything unfamiliar, complex, or abstract. But it has ...

Automaticity

This is the ability to perform a behavior without thinking about each step, which allows the pattern to become automatic and habitual.

Because when you begin practicing a new habit it requires a lot of conscious effort to remember to do it. But after a while, your new habit becomes a...

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