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

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This content is about understanding the six big ideas of cognitive bias. These six ideas are System 1 and System 2, Anchoring, The Science of Availability, Loss Aversion, Framing, and The Sunk Cost Fallacy. System 1 is the fast, automatic thought process and System 2 is the slow, more rational and logical thinking. Anchoring is when we assign a reasonable or even a high probability to an event that has an almost non-existent probability of happening to us. The Science of Availability is when we assign a probability to an event that is available to us. Loss Aversion is when people are very loss averse and need to be offered more than double to play a game. Framing is how we frame the same situation to have dramatically different consequences. The Sunk Cost Fallacy is when our past decisions influence our present decisions."