The bestselling author of Thinking, Fast and Slow talks about overcoming the cognitive biases and errors that can affect decision-making.
You can avoid decision-making mistakes by understanding the differences between these two systems of thought.
Nobel winner Daniel Kahneman says we tyically fear loss twice as much as we relish success. That's why it's so hard to take a risk
Nobel laureate Daniel Kahneman says people always overestimate their ability to predict the future. He puts his faith instead in...algorithms.
Nobel laureate Daniel Kahneman says that if you rationally weighed the odds of success, you'd never start a business. Thank goodness for irrationality.
Don't let especially lucky or unlucky outliers influence your decisions.
You're likely to give more weight to experience than hard data, even when the past is unlikely to predict the future.
You can gain the upper hand in negotiations by setting--or resetting--the anchor number.
Be wary of constructing a story based only on what you see--you may not realize what you don't know.
Telling stories that are 'better than reality' can trick you into looking for impossibly easy recipes for success.
What's worse: A disease with 90% survival or one with 10% mortality? (Even doctors get that wrong.) The Nobel winner on how "framing" fools everyone.
DECISIONS Thinking Fast vs. Thinking Slow6:35
LOSS AVERSION Your Irrational Fear of Loss and How it Messes With Your Decisions5:04
OVERCONFIDENCE Always Trust Your Numbers. Never Trust Your Gut4:27
FAITH Nobel Winner: Key Trait of Entrepreneurs Is 'Delusional Optimism'4:17
OUTLIERS One Event Can Skew Your Outlook3:30
PREDICTION Personal Stories Have More Impact2:44
NEGOTIATION Use Anchoring to Your Advantage2:29
STORIES What You See Is Not All There Is3:05
LUCK Don't Mistake Random Events for Causes3:43
FRAMING Every Salesman's Favorite Cognitive Illusion2:39