Kahneman guides the reader through a holistic approach to how one’s reference point affects the choices that one does. In essence, he portrays the possible underlying theory-induced blindness in several economics theories. The author has employed some theories in this chapter on which he points some errors that enables the reader to understand the importance of the past and one’s current situation. While most theories in economics tend to focus on expectations as the main determinant of one’s efforts towards achieving satisfaction, these positions are crucial in establishing the motive to work on making a choice.