Thinking - Fast and Slow
Daniel Kahneman
Contributed by Larisa Brooke
Chapter 28
Summary

The author outlines the key psychological factors which he finds to correlate with behavioral economics. The principal of these factors is negativity, which is the center of crucial psychology concerns. Kahneman finds that pessimism outweighs positivity to a great extent, especially when dealing with loss aversion-oriented individuals. The brain is responsible for picking up fears even the very minute of such threats, and so are words and actions. Kahneman goes on to explain the concept of a person’s goals. He argues that people cite their objectives as one of their main point of reference.

Analysis

This chapter highlights the capability of the brain to assess one’s current situation and detect possible threats. Kahneman draws a thin line between evil and right, which depend on the circumstances. Most people tend to cite this line as their reference point whenever they encounter unusual situations. The chapter also highlights the concerns about setting goals in one’s life. Big goals, as the author recounts, are relatively hard to pursue. As such, most people tend to divide them up into smaller goals that they can quickly achieve. Minor goals, in this regard, are perpetually viewed as the determinants of significant goals, whose chances of coming to be are minimal.

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