Quotes About Kahneman

You see the shadow. Snap! You are frightened—and running. That's the "availability heuristic," one of many System 1 operations—or heuristics—discovered by Daniel Kahneman, his collaborator Amos Tversky, and other researchers in the fast-growing science of judgment and choice.

The concept of loss aversion is certainly the most significant contribution of psychology to behavioral economics

In the unlikely event of this book being made into a film, System 2 would be a supporting character who believes herself to be the hero.

The Robust Beauty of Improper Linear Models in Decision Making.

representativeness can block the application of an obvious logical rule is also of some interest.

Most importantly, of course, we all care intensely for the narrative of our own life and very much want it to be a good story, with a decent hero.

System noise, that is, unwanted variability in judgments that should ideally be identical, can create rampant injustice, high economic costs, and errors of many kinds.

the weighted average of its possible dollar outcomes; it is the average of the utilities of these outcomes, each weighted by its probability.

To the untrained eye," Feller remarks, "randomness appears as regularity or tendency to cluster.

As we have seen, rationality is generally served by broader and more comprehensive frames, and joint evaluation is obviously broader than single evaluation.

I never met Meehl, but he was one of my heroes from the time I read his Clinical vs. Statistical Prediction: A Theoretical Analysis and a Review of the Evidence.

Atul Gawande's recent A Checklist Manifesto

Confidence is a feeling, which reflects the coherence of the information and the cognitive ease of processing it.

investment decisions. Why be concerned with gossip? Because it is much easier, as well as far more enjoyable

Venn diagrams apply only to probability, not to similarity. Hence the predictable logical error that many people make.

book titled Rationality and the Reflective Mind

We believe that having a longer duration of pain is worse than a shorter duration and that having a greater average level of pain is worse than having a lower average level. But this wasn't what the patients reported at all. Their final ratings largely ignored the duration of pain. Instead, the ratings were predicted by what Kahneman termed the "Peak-End rule": an average of the pain experienced at just two moments - the single worst moment of the procedure and the very end.

Some studies have estimated that losses have more than twice the psychological impact as equivalent gains. The fact is, we all hate to lose, which Kahneman and Tversky refer to as loss aversion.

KAHNEMAN AND TVERSKY HAVE USED THEIR RESEARCH ON FRAMING and its effects to construct a general explanation of how we go about evaluating options and making decisions. They call it prospect theory.

As the behavioral sage Daniel Kahneman has written: "[W]e can be blind to the obvious, and we are also blind to our blindness.

Kahneman, Nobel laureate and one of the fathers of behavioral economics, calls overconfidence "the most significant of the cognitive biases.

Remember this rule," advises Kahneman: "Intuition cannot be trusted in the absence of stable regularities in the environment.