For this reading reflection, I chose to read the book Thinking Fast and Slow by Daniel Kahneman.
1. The general argument of the book is that your brain essentially has two systems that it uses to process new information and decision-making processes. The first system is automatic and impulsive; this is the part of the brain that has been around since the beginning of humanity and handles instinctual and/or mindless tasks. The second system is much more conscious and logical. This system plays a role in higher-functioning behaviors such as deep concentration and self-control. Kahneman argues that these systems do not always work perfectly together which may limit our ability to use our full mental capacity.
2. The book connected with what we are learning in ENT3003 because the exercises in this class require that we think about our business ventures critically. Understanding the difference between the brain’s two types of systems allows you not to be fooled by system 1 when making business or financial decisions.
3. If I had to design an exercise based on this book, it would involve writing down two examples of the types of activities that require system 1 and system 2 functioning. Then, students would have to apply system 2 skills to a business decision and explain how using only system 1 might have blinded them from making the best choice.
4. The most surprising part of this book was how easy it is to let system 1 guide financial decisions. While it seems obvious that emotions should stay out of finances, it is a lot easier than it seems to let loss aversion play a major role in financial decisions.
Hi Beatriz,
ReplyDeleteI didn’t get a chance to read this book, but from reading your post it does seem interesting. I would like to learn more about how the second system of conscious and logical decision-making works. Self-control and self-awareness are very important. I feel like that is what makes the difference of people who are immature and people who have a handle on things in life.