Thinking, Fast and Slow 📙

A review + summary of the cornerstone work of Daniel Kahneman

Hey there! This is a Book Edition 📚 — where I publish our review + summary of a famous non-fiction book in our space.

It is made possible by the book club in the community, where every two months we decide on a non-fiction book to read, and we review it together in a live event at the end of the period.

Over the last two months, we've been diving into "Thinking, Fast and Slow" by Daniel Kahneman.

Kahneman was a psychologist and economist. In 2002 he was awarded the Nobel Prize in Economic Sciences for his work in applying psychological insights to economic theory, particularly in the area of judgment under uncertainty.

He passed away earlier this year — so reading and reviewing his work felt like a fitting tribute.

So, "Thinking, Fast and Slow" is not just another pop psychology book. It’s a cornerstone work in understanding human decision-making and cognitive biases, backed by decades of rigorous research.

And it shows.

In fact, if you get the physical edition, the first thing you will probably notice is that this is a hefty book. It clocks in at nearly 500 pages, with a 35-page appendix of notes and references. It’s the work of a lifetime: the lifetime of one of the most brilliant and prolific scientists of his generation.

“Thinking, Fast and Slow” is organized following a top-down approach: it starts with big ideas and gradually drills down into specifics. So, while it contains an inordinate amount of ideas, it never feels daunting or overwhelming, thanks to the clear structure, plenty of examples, and the easy writing style. We will follow its structure pretty much verbatim in this review.

Also, while it wasn't written specifically for people in tech, I have found its insights to be profoundly relevant to our job.

As engineering leaders, we're constantly making decisions: we estimate projects, assess risks, allocate resources, and navigate complex human dynamics. Most of these decisions are made under uncertainty, and Kahneman's work shows just how bad we are at these. He explains, with scientific precision, why we make irrational decisions, even when we believe we're being perfectly logical.

Ultimately, the book challenges us to think about thinking, by revealing invisible forces that shape our judgment. Understanding these forces helps us make better decisions, in work and life.

So let’s explore the key concepts from the book, and discuss how they apply to our work. Here's our agenda for today:

• 🧠 Two Systems — understanding our dual thinking processes

• 🎭 Biases and Heuristics — recognizing our mental shortcuts

• 📊 Prospect Theory — rethinking how we assess value and risk

• 🤝 The Two Selves — balancing experience and memory in design

Let's dive in!