Reaction Paper on Decision Making Text Bok - 2090 Words

Reaction Paper Thinking, Fast and Slow 2011 a book by Daniel Kahneman Submitted in partial fulfillment of the requirements For Master of Business Administration Degree Judgment in Managerial Decision Thinking The secrets of the human brain: the two mechanisms that control our lives Thinking, Fast and Slow is a 2011 book by Nobel Memorial Prize winner in Economics Daniel Kahneman which summarizes research that he conducted over decades, often in collaboration with Amos Tversky. It covers all three phases of his career: his early days working on cognitive bias, his work on prospect theory, and his later work on happiness. The books central thesis is a dichotomy between two modes of thought: System 1 is fast, instinctive and†¦show more content†¦For system 1 is active all the time (unlike the two, which requires a conscious effort), are more prone to cognitive errors. An example of system autonomy 1:01 Mà ¼ller-lyer is optical illusion in which two parallel lines seem to have different lengths. Even if we measure the two lines and convince ourselves (with the help of the two) that their length is the same, system 1 will continue to perceive as unequal. Like optical illusions, cognitive illusions tend to be difficult to overcome, but the first step out from under the domination of these mistakes is thinking their awareness. When people are in a time of crisis, uncertain situations, decisions are taken by the system 1. Therefore, it is essential to know its weaknesses. Cognitive mistakes that influence our decisions It is vital to understand that there are people who are not affected by the weakness of the system 1. This is demonstrated by a simple test that Kahneman applied it a thousand times: A baseball bat and a ball together cost $ 1.10. The bat costs a dollar more than the ball. How much is it? . Even for the most intelligent students, such as those at Harvard and Princeton, more than half gave the obvious answer offered by one system, but also wrong 10 cents. The correct answer was, of course, 5 cents. One of the most common cognitive errors is the overconfidence bias - the tendency to excessive trust in their own abilities. Statistics show that the chances of a new company founded in theShow MoreRelatedReaction Paper on Decision Making Text Bok2104 Words   |  9 PagesReaction Paper Thinking, Fast and Slow 2011 a book by Daniel Kahneman Submitted in partial fulfillment of the requirements For Master of Business Administration Degree Judgment in Managerial Decision Thinking The secrets of the human brain: the two mechanisms that control our lives Thinking, Fast and Slow is a 2011 book by Nobel Memorial Prize winner in Economics Daniel Kahneman which summarizes research that he conducted over decades, often in collaboration with Amos Tversky. It covers all threeRead MoreMedia Ethics and Hidden Cameras5346 Words   |  22 Pagescomments were confined to the manner in which the photographs were obtained and the detrimental effect on him, his family and his eventing career. Morgan Fahey’s campaign involved vehemently denying the accusations whilst condemning the method and making similar pleas for understanding. The New Zealand EPMU’s Journalism Code of Ethics contains guiding precepts including the desire that members do not gain by cash or kind; that they are fair in obtaining news and images and are open as to theirRead MoreFundamentals of Hrm263904 Words   |  1056 PagesDavid Levy  ©Michael Eudenbach/Getty Images, Inc. This book was set in 10/12 ITC Legacy Serif Book by Aptaracorp, Inc. and printed and bound by Courier/Kendallville. The cover was printed by Courier/Kendallville. This book is printed on acid free paper. Copyright  © 2010, 2007, 2005, 2002 John Wiley Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording