Daniel Kahneman's book Thinking, Fast and Slow explores the interplay between two cognitive systems: System 1, which operates quickly and intuitively, and System 2, which is slower, more deliberate, and analytical. The book examines various cognitive biases stemming from System 1's heuristics, such as anchoring, availability, and representativeness. Kahneman details how these biases impact judgment and decision-making, often leading to suboptimal choices. He also explores prospect theory, which explains how people make decisions under conditions of risk and uncertainty, highlighting the influence of loss aversion and framing effects. Finally, the text contrasts intuitive judgments with the use of formulas, arguing for the superiority of formulas in many prediction tasks.

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