Friday, April 26, 2013

How To Fine Tune System 2 - Daniel Kahneman

It’s a complicated question, but what is the simplest, most straightforward advice you’d give to someone who wants to make sure their System 2 isn’t ceding certain important decisions and calculations to System 1?

Not really a complicated question because the answers are not surprising. Slow down, sleep on it, and ask your most brutal and least empathetic close friends for their advice. Friends are sometimes a big help when they share your feelings. In the context of decisions, the friends who will serve you best are those who understand your feelings but are not overly impressed by them. For example, one important source of bad decisions is loss aversion, by which we put far more weight on what we may lose than on what we may gain. Advisors are likely to give us advice in which gains and losses are treated more neutrally—they are more likely to adopt a broad and long-term view of our problem, less likely than the affected individual to be swayed by the fears and hopes of the moment.

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