Summary of THINKING, FAST AND SLOW BY DANIEL KAHNEMAN | ANIMATED BOOK SUMMARY

00:00:00 - 00:05:00

Daniel Kahneman's "Thinking, Fast and Slow" discusses the two ways that humans think, and how biases can develop from using System 1 thinking instead of System 2 thinking. He provides examples of how anchoring can be used in personal life, such as avoiding being worried about low-probability events, and setting pricing for products.

• 00:00:00 Daniel Kahneman discusses the two ways that humans think - fast and slow. System 1, which is the fast, automatic thought process, has huge benefits, but can lead to biases and fallacies when used instead of System 2. Kahneman discusses anchoring, which is when a person's estimate of an event's probability is based on what is available to them. He provides examples of how this concept can be used in personal life, such as avoiding being worried about things that have low probabilities of happening, and setting pricing for products to take advantage of anchoring.
• 00:05:00 Daniel Kahneman's "Thinking, Fast and Slow" discusses the consequences of loss aversion, the sunk cost fallacy, and how past decisions can influence present decisions.