Monday, December 26, 2011

What I've Been Reading

Thinking, Fast and Slow by Daniel Kahneman. There are zillion things we can learn from Kahneman, one of the most wisest human alive. It's impossible to distill quotes from this book since every word oozes with wisdom.

“This is a landmark book in social thought, in the same league as The Wealth of Nations by Adam Smith and The Interpretation of Dreams by Sigmund Freud.”
- Nassim Taleb

The most important lesson I learned (lessons of humility for the citizens of Lake Wobegon) from his life was that whatever knowledge and wisdom he gave us over his life time was feasible only because of his special friendship with Amos Tversky. They both were lucky to have found each other. This friendship will be remembered forever in the annals of history.

"The pleasure we found in working together made us exceptionally patient; it is much easier to strive for perfection when you are never bored. Perhaps most important, we checked our critical weapons at the door. Both Amos and I were critical and argumentative, he even more than I, but during the years of our collaboration neither of us ever rejected out of hand anything the other said. Indeed, one of the great joys I found in the collaboration was that Amos frequently saw the point of my vague ideas much more clearly than I did. Amos was the more logical thinker, with an orientation to theory and an unfailing sense of direction. I was more intuitive and rooted in the psychology of perception, from which we borrowed many ideas. We were sufficiently similar to understand each other easily, and sufficiently different to surprise each other. We developed a routine in which we spent much of our working days together, often on long walks. For the next fourteen years our collaboration was the focus of our lives, and the work we did together during those years was the best either of us ever did.

We quickly adopted a practice that we maintained for many years. Our research was a conversation, in which we invented questions and jointly examined our intuitive answers. Each question was a small experiment, and we carried out many experiments in a single day. We were not seriously looking for the correct answer to the statistical questions we posed. Our aim was to identify and analyze the intuitive answer, the first one that came to mind, the one we were tempted to make even when we knew it to be wrong. We believed—correctly, as it happened—that any intuition that the two of us shared would be shared by many other people as well, and that it would be easy to demonstrate its effects on judgments.

Amos and I enjoyed the extraordinary good fortune of a shared mind that was superior to our individual minds and of a relationship that made our work fun as well as productive. Our collaboration on judgment and decision making was the reason for the Nobel Prize that I received in 2002, which Amos would have shared had he not died, aged fifty-nine, in 1996."



Kahneman is 77 years old and we can only hope he writes more books.


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