




Normally, says Kahneman, System 2 gets the last word, but only if it can get one in edgewise and it is often too busy or lazy to intervene. Most of our thoughts originate here, but it’s the job of System 2 (the logical, controlled process) to step in when the input becomes more demanding or when effortful self-control is required. And it does its best to ignore challenges if it can. It’s that impressionable gut feeling that looks for patterns and coherence and that makes us feel complacent unless challenged. This is the human mind’s System 1-in Kahneman’s terminology, the fast process that operates automatically and usually outside our awareness. In other words, we cannot be internally consistent because, far more than we imagine, we are ruled by hidden influences when making judgments and decisions. According to Kahneman, expecting people to think the way economists have traditionally theorized is “impossibly restrictive” and “demands adherence to rules of logic that a finite mind is not able to implement.” For instance, rational thinkers would not be subject to reversing their preferences based on the words in which the choice is framed, but real people are. Old-school economists have held that the test of rational thinking is whether a person’s beliefs and preferences are internally consistent. Rather, says Kahneman, they “are not well described by the rational-agent model.” Although a psychologist, he was awarded the Nobel Prize in Economic Sciences precisely because his research challenges traditional economic theory. This is not to say that humans are irrational. In Thinking, Fast and Slow, Kahneman reveals what he has learned as a result of his Nobel Prize–winning research in judgment and decision making: human beings (and that includes you and me) are not the rational agents economists and decision theorists have traditionally assumed. March 20, 2012-How many of us are really open to the possibility of shattering our cherished biases and illusions, especially those that support the trust we maintain toward our own mind? Well, don't read Daniel Kahneman's latest book unless that is precisely what you are prepared to do. Daniel Kahneman: Unveling the Two-Faced Brainĭaniel Kahneman.
