Quotes from Daniel Kahneman

psychologists Keith Stanovich and Richard West, and will refer to two systems in the mind, System 1 and System 2. System 1 operates automatically and quickly, with little or no effort and no sense of voluntary control. System 2 allocates attention to the effortful mental activities that demand it, including complex computations. The operations of System 2 are often associated with the subjective experience of agency, choice, and concentration.

The failures of forecasting in these cases reflect the customers' inability to imagine how much their wishes will escalate over time. They end up paying much more than they would if they had made a realistic plan and stuck to it.

You are more likely to learn something by finding surprises in your own behaviours than from hearing surprising facts from the behaviour of others

In a paper titled "Trading Is Hazardous to Your Wealth," they showed that, on average, the most active traders had the poorest results, while the investors who traded the least earned the highest returns.

It is easier to change directions in a crisis, but this was not a crisis.

Every author, I suppose, has in mind a setting in which readers of his or her work could benefit from having read it.

I describe System 1 as effortlessly originating impressions and feelings that are the main sources of the explicit beliefs and deliberate choices of System 2.

rewards for improved performance work better than punishment of mistakes. This proposition is supported by much evidence from research on pigeons, rats, humans, and other animals.

Unlike cognitive load, ego depletion is at least in part a loss of motivation. After exerting self-control in one task, you do not feel like making an effort in another, although you could do it if you really had to. In

perception of intention and emotion is irresistible; only people afflicted by autism do not experience it.

Experienced radiologists who evaluate chest X-rays as "normal" or "abnormal" contradict themselves 20% of the time when they see the same picture on separate occasions

the word happiness does not have a simple meaning and should not be used as if it does. Sometimes scientific progress leaves us more puzzled than we were before.

An inconsistency is built into the design of our mind.

the response to losses is stronger than the response to corresponding gains. This is loss aversion.

I can best describe our state as a form of lethargy- an unwillingness to think about what had happened. So we carried on.

We know that people can maintain an unshakable faith in any proposition, however absurd, when they are sustained by a community of like-minded believers.

when the repeated words or pictures are shown so quickly that the observers never become aware of having seen them. They still end up liking the words or pictures that were presented more frequently. As should be clear by now, System 1 can respond to impressions of events of which System 2 is unaware. Indeed, the mere exposure effect is actually stronger for stimuli that the individual never consciously sees.

More generally, the financial benefits of self-employment are mediocre: given the same qualifications, people achieve higher average return by selling their skills to employers than by setting out on their own. The evidence suggests that optimism is widespread, stubborn, and costly. Psychologists have confirmed that most people genuinely believe they are superior to most others on most desirable traits - they are willing to bet small amounts of money on these beliefs in the laboratory.

Errors in the initial budget are not always innocent. The authors of unrealistic plans are often driven by the desire to get the plan approved—whether by their superiors or by a client—supported by the knowledge that projects are rarely abandoned unfinished merely because of overruns in costs or completion times.

Judgments are both less noisy and less biased when those who make them are well trained, are more intelligent, and have the right cognitive style.

System 2 also is capable of a more systematic and careful approach to evidence, and of following a list of boxes that must be checked before making a decision

Most of us view the world as more benign than it really

An unbiased appreciation of uncertainty is a cornerstone of rationality—but it is not what people and organizations want.

And it is natural for System 1 to generate overconfident judgments, because confidence, as we have seen, is determined by the coherence of the best story you can tell from the evidence at hand. Be warned: your intuitions will deliver predictions that are too extreme and you will be inclined to put far too much faith in them.