Author calls these assumptions heuristics. The book shows that our intuition is biased and we assume certain things without having thought through them carefully. Author further uses the example of prospect theory to demonstrate decision making under risk and uncertainty. Thinking fast and slow by Daniel Kahneman provides an insight and understanding for topics like psychology, perception, irrationality, decision making, errors of judgment, cognitive science, intuition, statistics, uncertainty, illogical thinking, stock market gambles, and behavioral economics. System 2 = The slower, conscious, rational, reasoning, deliberate thinking.
System 1 = The instant, unconscious, automatic, emotional, intuitive thinking.
System 2, which is a slow system and intervenes when output of system 1 is insufficient, infringe or less rational. System 1 which is fast and is responsible for intuitive decisions based on emotions, imagery and associative memory. Thinking fast and slow in based on two systems of decision making.
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