1) For this assignment, I read Thinking, Fast and Slow by Daniel Kahneman. In it, Kahneman discusses the ways that humans think and make decisions. He talks about research that has been conducted that demonstrates ideas such as heuristics, optimism/overconfidence, the way we make choices, and more. Ultimately, this book is highly informative, and is a valuable tool for those looking into how to influence or understand human decision making.
2) I believe that the numerous studies that Kahneman named in this book are beneficial to an entrepreneur trying to connect with their audience. I think that if someone wants to get a better understanding of the way that people make decisions, frame situations in their life, or experience things (for the purposes of business opportunities and social networking), this book is the go-to.
3) I think that a good exercise for this class is figuring out ways to exploit what Kahneman called the “System 1” way of thinking. This is the way that we make quick, unconscious decisions. These situations include driving on an empty road, reading an advertisement on a billboard, and adding 2 + 2. Therefore, entrepreneurs can exploit this by crafting marketing/relational campaigns with potential customers that require quick decisions. Furthermore, these ideas can be framed in a way that encourages involvement with the entrepreneur’s business.
4) My biggest “aha” moment with this
book was when I read about framing. More specifically, Kahneman cited a study
that found that more people elected to do a surgery with a 90% survival rate than
when they were told it had a 10% mortality rate. This made me realize how susceptible
we really are to the way choices are framed for us. Furthermore, it gave me an
optimistic sense of opportunity as I was learning about a whole new way to
market myself or my ideas to others.
This book sounds incredibly interesting, at least based on your description. Topics that cover any type of systematic breakdown of how people think are intriguing to me. The point you made about your “aha” moment, how people respond differently to the same data presented in opposing forms, like a 90% survival rate versus 10% mortality rate, relates very closely to my previous comment regarding your mention of packages getting stolen. This connotation/association phenomenon was something that I learned from a real-estate agent, but It sounds like Daniel Kahneman presented it much more thoroughly and in a more interesting way. I’m glad you had a chance to read about this.
ReplyDeleteHi Sophia. This book sound like it was a very good read. The framing phenomenon is something I find extremely interesting as well. The way that people perceive the exact same information in different ways solely based on how they are fed that information is an important concept to understand and something we should be aware of when looking at statistics ourselves. Great Post.
ReplyDeleteHey Sophia,
ReplyDeleteI also read this book, and I found your review really interesting and insightful. I think your idea for an exercise in this class is really good and ties together the material covered in the book and what we're learning in this class very well. I agree that this book is best applied to entrepreneurship by considering how the principles of thinking apply to your customers. Great job!
Hey Sophia, it sounds like this book covers some interesting ideas regarding decision making. I find it surprising that anyone would agree to surgery with a 90% survival rate, but I guess people who have less knowledge when it comes to statistics might not immediately put the data into context. I can definitely see how the psychology of decision making could be for effective advertising.
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