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M1 The Anthropology of Decision-Making
-Kahneman, D. 2011. Thinking…
M1 The Anthropology of Decision-Making
-Kahneman, D. 2011. Thinking Fast and Slow. New York: Farrar, Straus and Giroux.
Two systems
s1
-operates automatically and quickly, with little or no effort no sense of voluntary control
-generate complex patterns of ideas
s2
-allocates attention to the effortful mental activities that demand it, including complex computations. The operations of system 2 are often associated with the subjective experience of agency, choice, and concentration.
-construct thoughts in an orderly series of steps
-what we identify ourselves
-attention required
Plot synopsis
s1:
-automatic
-generates suggestions for s2
-runs into difficulty, it calls s2 to support more detailed and specific processing
s2:
-comfort low-effort mode
-impressions, institutions turn into beliefs, and impulses turn into voluntary actions
-adopts the suggestions of s1 with little or no modification(believe impression and act on desires)
-continuous monitoring own behavior(the control that keeps you polite when feeling angry, or stay alert when driving at night)
-increased effort when detecting error
Summary:
s2 originates from s1, but s2 takes over when things get difficult, and s2 becomes determining
s1:
-familiar situations and short-term predictions are usually accurate
-initial reactions to challenges are swift
-easier questions, having little understanding of logics and statistics
-connot be turned off
Conflict
s2 recognizes (cognitive) illusions
s1 automatic and cannot be turned off, therefore, biases cannot always be avoided
s2 may have no clue to the biases, only the enhanced monitoring and effortful activity of s2 can avoid biases
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Useful fictions
m2: Mental arithmetic
effort required, prevents from reacting foolishly to the insult, more aggressive in his response if his capacity for effortful control had been disrupted(drunk)
m1
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special aptitude for the construction and the interpretation of stories about active agents, who have personalities, habits, and abilities.
Prospect theory
Loss aversion
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- mixed gambles usually, risk-averse
-bad choices, risk seeking
Introduction
-In utility theory, the utility of a gain is assessed by comparing utilities of two states of wealth
-The variable is the reference point, 'adaptation level'
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Thinking like a trader
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Poor think like traders, but with lower reference points
and no do difference between gaining and giving up. all choices are losses. costs are losses
Regret
people expect to have stronger emotional reactions to an outcome that is produced by action rather by inaction
Responsibility
More loss averse, excluding health