5 psychological principles from The Undoing Project

Last month, I wrote about the phenomenon of Decision weighting after reading the book Thinking, Fast and Slow, by Daniel Kahneman. Some friends then recommended another book featuring the work of Kahneman and Amos Tversky: The Undoing Project. The Undoing Project covers much of the same material as Thinking, Fast and Slow, but in an…

Decision weighting according to Kahneman

Let's play a game called "Would you Rather?" Would you rather have... A) a 90% chance at winning $1000; orB) $900 guaranteed? Most people choose option B with little hesitation. It has the same expected value (= probability × prize) as option A, but more certainty. There's no FOMO (fear of missing out); there's no…