MBA Insights

Organizational Behavior #03: Thinking, Fast and Slow


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In this episode, we explore the groundbreaking two-system model of the mind introduced in Daniel Kahneman's "Thinking, Fast and Slow." This framework explains how we think and make decisions through two distinct systems: System 1, the intuitive thinker, and System 2, the effortful thinker.

System 1 operates automatically and effortlessly, handling quick judgments, emotional reactions, and simple tasks. It’s always active, offering fast responses and instincts based on memory associations. In contrast, System 2 takes on complex, deliberate thinking tasks, requiring focus and energy to solve problems, evaluate arguments, and monitor our behavior. While System 2 can intervene when System 1 encounters challenges, it prefers to conserve energy, often resulting in shortcuts and potential errors.

We also discuss how these systems interact, sometimes clashing—such as when System 1 misperceives a visual illusion despite System 2's knowledge of reality. This dual-process model reveals both the strengths and biases inherent in our thought processes and highlights the role of reasoned decision-making. Tune in to understand how this two-system view shapes everything from daily choices to complex judgments, providing valuable insights into human behavior and cognitive bias.

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MBA InsightsBy MBA Insight Collective