This podcast episode offers a concise overview of Daniel Kahneman’s groundbreaking work on judgment and decision-making. It contrasts System 1 (fast, intuitive thinking) with System 2 (slow, deliberate thinking), shedding light on how our minds process information.Listeners will explore key cognitive biases and heuristics—like the planning fallacy, hindsight bias, and the availability heuristic—that often lead to systematic errors in reasoning. The episode also delves into prospect theory, explaining how people assess outcomes relative to a reference point, which results in behaviors like loss aversion and the endowment effect. These insights reveal how our preferences often defy rationality and change depending on how choices are framed.Lastly, the episode touches on the distinction between experienced well-being and remembered well-being, uncovering how our memories are shaped by biases such as the peak-end rule and duration neglect, influencing how we judge past events—and even our lives as a whole.

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