3min chapter

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Thinking Fast and Slow by Daniel Kahneman Book Summary and Review | Free Audiobook

📚 Best Book Summaries by StoryShots

CHAPTER

How Hindsight Affects Decision Making

Hind sight bias has a significant impact on the evaluations of decision makers. We construct narratives to make sense of the world and look for causality where none exists. Pundits, stock pickers and other experts develop an outsized sense of expertise. Alcharithms applied with discipline often outdo experts and their sense of intuition. Planning fallacy occurs when people overestimate the positive outcomes of a chance based experience because they planned for the occasion. Optimism and the entrapenorial delusion are also common in humans.

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