System 1 Generally very good Short term predictions accurate Initial reactions swift and appropriate But Has systemic biases Doesn’t understand logic and statistics Cannot be turned off System 1 System 2 Tries to make sense Is polite Pays attention when driving Notices anomalies Minimise effort and optimise performance System 1 System 2 Both active when awake Automatically generates suggestions Intuitions Impulses Usually accepts suggestions Belief Voluntary actions Check the validity of a complex logical argument.Compare two washing machines for overall value.Park in a narrow space (for most people). Count the occurrences of the letter a in a page of text.Monitor the appropriateness of you behaviour in a social situation.Maintain a faster walking speed than is natural for you.Search memory to identify a surprising sound.Focus attention on the clowns in a circus.Recognise that a “meek and tidy soul with a passion for detail” resembles an occupational stereotype.Find a strong move in chess (if you are a chess master).Make a “disgust face” when shown a horrible picture.Detect one object is more distant than another. System1 thinking How does this woman feel? Strong emotions cause departure from rationality Since then behavioural psychologists and economists have developed a different view based on an analysis of how we think….1970s believed that people are generally rational.Thinking fast and slow Daniel Kahneman 2011 Winner of 2002 Nobel prize for economics
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