Reading Reflection No. 2

1. For this assignment I read Thinking, Fast and Slow by Daniel Kahneman. The book basically argued that two systems in our brains are constantly fighting over control of our decisions and actions. He argues that our behavior is either automatic (System 1) or conscious (System 2). Furthermore, our brains are lazy and they can perceive problems as easier than they actually are and use the wrong system to solve the problem. This can lead to errors in judgement when people are not careful and conscious about their decisions.

2. I thought this book connected excellently with what we have been learning in ENT3003 throughout the semester. Entrepreneurship is all about solving problems and creating a product that satisfies a consumers' demand. Therefore, the ability to approach a problem logically is an important tool to have and Kahneman's Thinking, Fast and Slow breaks down how to prioritize using the conscious system of the brain to solve problems. It has enhanced my learning by teaching me how to reduce my errors in judgement simply by being conscious about the way I approach difficult problems. This was an excellent book to reinforce concepts learned in this class.

3. If I were to design an exercise for the class, based on this book, it would involve a logic question which reinforces the two system theory of the brain as proposed by Kahneman. For example, I would ask the class a question such as this:

If an electric train is moving North at 100 mph and the wind is blowing west at 10 mph, which way does the smoke blow?

Many people would probably say that the smoke would blow southwest which might be correct if it wasn't for the fact that it was an electric train. This question seems like an easy one for the brain to interpret so it automatically produces an answer instead of you consciously thinking about the question. Because of this, some people would miss the fact that it was an electric train and it would not produce smoke as a result.  This exercise would be a good representation of the two systems of the brain in action as talked about in Kahneman's Thinking, Fast and Slow.

4. My biggest surprise while reading was when I caught myself using the automatic system of my brain on a question in the book without even realizing it. The problem in the book was about a bat and a ball. He said that the bat and ball cost $1.10. The bat costs $1 more than the ball. So how much does the ball cost? I took a look at this and thought about it for a few seconds before coming to the conclusion, confidently I might add, that the answer HAD to be 10 cents. I then read on to discover that this was the automatic and intuitive system of my brain tricking me into picking the obvious answer. The real answer was 5 cents and the bat has to be $1.05 to combine to $1.10. Looking back it was the obvious answer yet I foolishly picked the wrong answer. This really reinforced one of the main themes of the book for me which was that many people are overconfident and place too much faith in intuitions. Basically, our brains are lazy and will pick an easy and obvious answer rather than wanting to put in the effort to ponder the question. Therefore, the key is to enact the conscious system of your brain to deal with problems.