Thinking Fast and Slow: How to Make Better Decisions - [Cognitive Biases #6]

The surprising psychology of rationality, bias, numbers and happiness can improve your decision-making. Daniel Kahneman's 'Thinking Fast and Slow' explores the interplay between our fast, intuitive thinking (System 1) and our slow, rational thinking (System 2). Sam discusses various cognitive biases and how our thinking systems cause them such as the anchoring effect, availability heuristic, confirmation bias, and overconfidence bias. He also covers fundamental theories like prospect theory and the peak-end rule, offering practical insights on fostering happiness and making better life choices. Stay tuned to learn more about how our brains work and how we can use this knowledge for self-improvement. Sponsors: ManScaped: Men's grooming at its best. 20% Off + Free Shipping - code 'GROWTH' - ManScaped.com/Growth ShortForm: Summaries of the world's best books. Free trial + 20% off - code 'PSYCHOLOGY' - ShortForm.com/Psychology SleepyClub: Doctor-approved natural sleeping aid that improves sleep quality. 20% discount - code 'GROWTH20' - SleepyClub.co.uk Further Reading: Thinking Fast and Slow - Daniel Kahneman Predictably Irrational - Dan Ariely Further Listening Enjoyed this episode? Check out the rest of the Cognitive Biases series: Ego Blindspots: 9 Cognitive Biases to Avoid - [May 7th] Human Nature vs. Money: Battling Irrationality & Thinking Traps [May 19th] Confirmation Bias and the 7 Sins of Lazy Thinking - [June 4th] Reality Distortion and the 7 Illusions of Perception Impact Everyone - [June 18th] Cognitive Rigidity and How Einstein Overcame the 5 Biases that Keep Us Stuck - [June 19th] [YOU ARE HERE] - Thinking Fast and Slow Meet Sam Free Call - Schedule Link Growth Mindset Psychology: Sam Webster explores the psychology of happiness, satisfaction, purpose, and growth through the lens of self-improvement. Watch - YouTube (Growth Mindset) Website - GrowthMindsetPodcast.com Insta - SamJam.zen Newsletter - Expansive Thinking Chapters: 00:00 Understanding Cognitive Biases, comedy and systems of thinking 02:50 Deep Dive into System One and System Two Thinking 04:15 How System 1 and System 2 Work Together 05:40 System 1's Impact on Decision Making 07:18 System 1 and Politics 10:20 The Teenage Brain and System 2 Development 11:24 Cognitive Biases and Their Impact 16:34 The Law of Large Numbers 21:29 Prospect Theory and Risk Assessment 21:46 The Cookie Analogy: Understanding Loss Aversion 22:31 Rationality and Utility Theory in Economics 24:30 Prospect Theory: Perception of Value and Risk 26:06 Probability and Decision Making 28:19 The Experiencing Self vs. The Remembering Self 30:07 The Peak-End Rule and Its Impact on Memory 33:45 Balancing Moment-to-Moment Pleasure and Long-Term Satisfaction 36:56 The Focusing Illusion: What Really Matters 42:33 Final Thoughts and Recommendations Learn more about your ad choices. Visit podcastchoices.com/adchoices