System 1 is quick, automatic, and emotional. System 2 is slow, effortful, and logical. Both shape how we make decisions.
Our minds rely on shortcuts, which often lead to biases like anchoring, availability, and confirmation bias .
People often overestimate their knowledge and control, leading to flawed decisions in business and daily life.
We fear losses more than we value gains, causing risk-averse behavior even when taking risks might benefit us.
How options are presented influences choices dramatically, even if the outcomes are the same .
Understanding these mental shortcuts helps improve critical thinking, decision-making, and awareness of personal biases.