Thinking - Fast and Slow
Daniel Kahneman
Contributed by Larisa Brooke
Chapter 34
Summary

The chapter is a philosophical analysis of the economic point of view. Economics holds that preferences and beliefs are real or are bound to reality. System 1 create a sense of meaning by interpreting sentences otherwise than their direct purpose. The process takes place without the individual’s knowledge of the occurrence. In the chapter, Kahneman states that reality rather than emotions do not bind the human brain. The human being brains tend to emulate decision problems in their framed form passively. The framed form results are that we do not have the opportunity to evaluate the extent what we prefer is frame-bound.

Analysis

The chapter criticizes the economical point of view of rationally. Kahneman has compiled researches on the bitter fact of how irrational people can be. He documents the process intuitions influence us to give new meaning to a statemento other than what they imply. People base their judgments and decisions on emotions. Emotions vary from time to time causing instability in decision making. Considering such an analysis, it will be unfair to conclude that people are rational thinkers. Multiple factors influencing the emotions experienced by people will have a way much better chance to affect judgments.

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