ROSANA, FRANCES LORRIANE B.

BSMA 1-11

Thinking, Fast and Slow by Daniel Kahneman: A Review

In Plato’s perspective, learning is about recollecting what we already know. Reading this
book made me realize how true it is and how much it makes sense. In every example, in every
chapter, I pause and reflect on how it affects me? And by me, I mean the person who breathes,
eats, interacts, rest, and very person writing this paper. And for that reason, a conclusion is made
up in my mind: the fact that this book makes me think beyond the words that I read, makes it a
good read.

Kahneman describes that there are two ways our brains form thoughts: System 1 and
System 2. System 1 is automatic and impulsive. It is how you solve 1+1 or how you pull your
finger back when you touch a hot pan. System 2 is very conscious, aware and considerate.
However, these 2 systems don’t just perfectly alternate or work together. They often fight over
who’s in charge and this conflict determines how you act and behave. System 1 proposes,
System 2 disposes. So System 2 would seem to be the boss, right? In principle, yes. But System
2, in addition to being more deliberate and rational, is also lazy. And it tires easily. So instead of
analyzing and slowing things down as it should, System 2 relies on what System 1 feeds it. And
that is where things go haywire.

As humans, our everyday living is made up of decisions. Do I wake up early or sleep

more? Do I skip breakfast or not? Do I buy this car or not? These decisions vary; some are
simple and can be made within a snap, and some are more critical, requiring careful thinking and
deep understanding. That is where System 1 and System 2 (explained above) comes into picture.
But take note, these systems are not like ‘little beings’ in our brains with distinct personalities,
but more of “useful fictions”— useful because they help explain the quirks of the human mind.

Our brains are lazy; we opt to accomplish things the easiest and fastest way possible and
that is just the way we are. In an ideal setting, when system 1 faces a tough problem it can’t
solve, it’ll call system 2 into action to work out the details. But sometimes we think that a
ROSANA, FRANCES LORRIANE B.
BSMA 1-11

problem is simpler than they actually are. System 1 thinks it can handle it, even though it
actually can’t, and you end up making a mistake.

We’re a lot more afraid to lose what we already have, as we are keen on getting more.
And at the same time, we get less sensitive about money (called diminishing sensitivity
principle), the more we have. But what I have realized reading this book, rule number 1 for any
good poker player: “Leave your emotions at home.” Don’t let emotions get in the way where
they have no business. Try to consider statistics, probability and when the odds are in your favor,
act accordingly. Just knowing your emotions try to confuse you when it’s time to talk money will
help you make better decisions.