The Anchoring Effect Is a Hard Core System One

Thinking, Fast and Slow - by Daniel Kahneman

This book is the bible of human behavioural psychology. Author Daniel Kahneman won the 2002 Nobel Prize due to his work on Prospect Theory, a big part of this book. The book is so dense we'll need to cover it over two episodes.

This week we will learn about:

System 1 - which operates automatically and efficiently,

System 2 - which allocates attention to effortful activities.

And - that our brain has limited resources making us irrational, and prone to biases such as:

- the law of small numbers

- anchors

- availability

- base rate neglect

- Linda effect

- regression to the mean.

Thinking Fast and Slow features highly in our top 50, for the full list download for free at: www.whatyouwilllearn.com/top50

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