Reviews of Non-fiction Books to Read — Daniel Kahneman

Noise by Daniel Kahneman, Olivier Sibony and Cass R. Sunstein

Business Daniel Kahneman Finance Management Skills Methodology Noise Psychology

Noise by Daniel Kahneman, Olivier Sibony and Cass R. Sunstein

Consider the following scenario: you are holding a stopwatch in your hand. Start the watch and then stop it after precisely ten seconds, all without glancing at the time. If you repeat this process many times in a row, you will find that reaching 10 seconds on the dot is almost difficult. Sometimes you'll be a bit short, and other times you'll be a little longer. You may be off by a few milliseconds at times. Other times, you're off by a fraction of a second, or even more than that. In any case, you will wind up with a collection of mistakes that have no obvious pattern and no discernible origin as a result of this small experiment. This is an example of noise, or a series of unpredictably bad decisions. And although your mistakes in this small stopwatch experiment seem harmless enough, as you will soon discover, differences in judgment such as these may have much more severe ramifications. Please accept my invitation to the weird realm of noise.

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Thinking, Fast and Slow - Daniel Kahneman

Applied Psychology Business Daniel Kahneman Fast and Slow Finance Management Management Skills Thinking

Thinking, Fast and Slow - Daniel Kahneman

 In our thoughts, there is a fascinating drama unfolding, a film-like storyline with two major characters that is full of twists, turns, drama, and suspense. System 1 is the impulsive, automatic, intuitive System 1, and System 2 is the thinking, methodical, and calculating System 2 are the two characteristics. As they compete against one another, their interactions influence the way we think, make judgements and choices, and behave as a result of our experiences. System 1 is the portion of our brain that works instinctively and abruptly, and which often operates without our conscious knowledge or permission. It is possible to encounter this system at work if you are exposed to an extremely loud and unexpected sound. What are you going to do? You most likely transfer your attention to the sound very quickly and instinctively after hearing it. System 1 is comprised of the following components:

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