Book review: Thinking, Fast and Slow by Daniel Kahneman

I have read other reviews where readers usually admire and recommend this book for reading. My review won’t be different. So I recommend this book especially for my colleagues as a project and product manager.

Daniel Kahneman’s book has changed the way we think about thinking. The book defines two ways of thinking: System 1, which is fast, intuitive, and emotional, and System 2, which is slower, more deliberative, and more logical. Kahneman explores how these two systems work together and how they can lead us astray in our decision making. The author tells us about several theories and uncovers them though scientific research. I will tell the most interesting of this.

Framing-Effect is an important concept discussed in the book. It refers to how the way information is presented (framed) can influence our decisions and judgments. For example, a product may be more appealing when presented as “90% fat-free” versus “10% fat.” Kahneman’s research shows that we are often swayed by these linguistic tricks without even realizing it. I faced it when I was creating a landing page for the Multibank product. Customers didn’t want to leave their personal data and we changed the description by adding information where we guaranteed data protection. As a result, the conversion increased, but we didn’t change anything, except the text.

Regret theory is another important theory discussed in the book. It suggests that when making decisions, we often consider the possible outcomes and the potential regret we may feel if we make the wrong choice. This can lead us to making decisions based on avoiding regrets rather than maximizing our potential for success. Kahneman is sure that understanding this theory can help us make better decisions and avoid falling into common decision-making traps.

Sunk costs are another concept discussed in the book. These are costs that have already been incurred and cannot be recovered. Kahneman shows that our tendency to consider sunk costs when making decisions can lead us to make irrational choices. For example, if we have already invested a lot of money in a failing project, we may feel compelled to continue investing in it rather than cutting our losses and moving on. Understanding the sunk cost fallacy can help us make better decisions and avoid wasting resources.

I was impressed that many scientific researches of the previous century but in life every of us inventing the wheel. It will be a good way to include this book in the school program. As a result, people might make more rational decisions.

Overall, the book can be a reference book for managers and other professions where they work with a lot of information and make decisions.