A big thank you to everyone who pointed out that the two cliparts were mixed. I added annotations, but the sad guy is supposed to be next to "10% chance die" and the happier guy is supposed to be next to "90% chance live." Thanks again, and sorry about that! :) Get any FREE audiobook of your choice here: audibletrial.com/fightmediocrity If you want a suggestion for the free audiobook or for reading a book, here's FightMediocrity beginner's reading list: 1. Rich Dad Poor Dad: amzn.to/1VLAklY 2. The 4-Hour Workweek: amzn.to/1Qn5DA5 3. How to Win Friends and Influence People: amzn.to/1VLAoCe 4. The 48 Laws of Power: amzn.to/1VLAoSK 5. The Way of the Superior Man: amzn.to/1Qn5EDZ 6. Man's Search for Meaning: amzn.to/1Qn5GM0 7. Mastery: amzn.to/1VLArOu 8. Mindfulness for Beginners: amzn.to/1VLAs4S 9. The Obstacle is the Way: amzn.to/1VLAslw
+FightMediocrity I like imagining that the fellow on top is revelling in the danger of possible death, and the fellow on the bottom is distraught about how likely it is that he will survive hehe
Main Ideas in Thinking Fast and Slow: 1) There are 2 "thinking systems" in our minds. The first is fast, automatic. The second is slow, logical. 2) Anchoring: when you lack sufficient data to guess the value of something, you tend to hover around a pre-offered number. 3) Availability: a sort of confirmation bias. We tend to believe unlikely things have a high chance of happening because we keep looking at news/media portraying them. 4) Loss Aversion: if they have to risk, humans prefer not losing to winning. 5) Framing: How you present a situation affects your interpretation and feelings. Essentialy looking at the glass half empty or half full. 6) Sunk Costs: people believe because they've already spent money/time on something, they might as well see it through or continue. That is a mistake. Past events can't determine your future course of action.
I would add two more key points to this summary: 1. People are willing to risk more when losses seem guaranteed and risk less to preserve an apparent gain. This combines framing and loss aversion in a very important way. 2. Despite the illogical nature of System 1, it has orders of magnitude more power than System 2, so rather than try to ignore or inhibit System 1, we should understand its limitations so that we know how to tap its power more safely.
One of the reasons I like this channel is the creator not only summarizes the book but also describes how it can be applied to one's life. Keep 'em coming!
Until the end of the 19th century children in Denmark weren't counted as "living" untiol they'd survived their first five or so years, due to the number of child deaths. Just a historical fact.
One reason for loss aversion is diminished marginal utility. Losing a 1000 might put a serious dent in persons budget maybe even causing that person to miss payment on important bills which would then cause other financial losses down the line. Winning 1100 on the other hand would only slightly improve person's life.
It also depends on how many times you can play the game. If you can play as many times as you want, or at least a sufficiently large number of times, not only can you increase your total expected earnings ($100/game), you also reduce your chance of coming out in the negative at all. Your chance of coming out in the negative is 50% if you can only play once, but if you play 100 times you have a 69% chance of coming out ahead (that's your chance of winning at least 48 times). Or if a 31% chance of losing money is too high, if you could play 1000 times your chance of coming out in the red is only 7% - and, of course, your expected value is way higher.
Thanks! Timestamps: 1. Understanding System I and System II, and when to use each - 1:50 2. Anchoring - Leading you to believe/ set your mind to base your thinking on - 3:02 3. The Science of Availability - Don't be influenced by biased / limited sources of information by the time to draw conclusions - 4:36 4. Loss Aversion - Fear of loosing is larger than gaining when faced with options, i.e., investments - Use that to persuade people to make good decisions by focusing your argument on what they are likely to loose, rather than earn/gain - 5:58 5. Framing - A Dr saying you have 10% chances of dying is the same as if she said you have 90% chances of living. The emotional effects are going to be largely different. How can that concept be used to influence people? - 7:10 6. Sunk Cost Fallacy - Don't let your past decisions affect/influence on what's actually good for you now - 7:34
I read this book many years back in 2014, and at that time I was working for my uncle, doing a consulting job...I told my uncle about what I had read and how interesting it would be to apply what I had learnt, and my uncle said, and I quote: " What you can learn by doing can't be replaced by a few arcane , esoteric and fancy jargon, meant for academics who deceive themselves into believing that they have some incisive insight into how people think, believe and determine. Business isn't complicated and marketing certainly isn't". What he meant to say was that what instinct can achieve , knowledge can never match, unless of course people design things with the sole intention of satisfying their egos. I am in academia now, just another opportunity to get a receipt for hard work, but some of the best professors I have won't even be hired by God to spread the gospel. Lesson: Never be bogged down by theory; experiment and find out for yourselves. Theories aren't immutable.
+FightMediocrity hi man thanks for the value....is there a mail adress I can mail you at? have an opportunity I would like to diacuss with you that can add value to both of us. good day.
I personally wish success and happiness for you and anyone reading this! You WILL overcome your tribulations by remaining that GREAT person that you are! I KNOW it! Just keep going.
Good stuff. Something Ive always said that is a 'sunk cost'. Forcing yourself to finish food. Its not even just about waste because you end up paying for displeasure.
You got soooooo much more out of this book than I did. I just read it a few days ago, and I only understood about 10%. Or rather, I missed out on 90% of the content!! I'll need to read it again, thanks for the great summary!!
I have no idea how I found your channel but im so glad I did, I love it so much, just subscribed, last year I found out about self help and self help books and I fell in love, they have helped my personal development so much, im currently reading 7 habits of high effective people and I love it, thank you so much for all these videos
You have to read this book about 50x to take in all the information, before this I never knew how many biases we actually operate by. But even knowing their existence makes it so much easier to make clearer decisions because now you can stop and ask yourself which of your systems is really making the decision. I wonder if in a few million years, if we make it as a species, we'll have more systems or complete control of our existing ones. Great video as always dude!
Becoming Alpha Hahaha, I know right? It's super dense, it's like taking the entire field of behavioral economics and trying to shove it into a single book :))
I started reading this book months back but never finished it. Its dry and boring but the content is excellent. However, the points described in your video are great and accurately reflect the major ideas (at lease for the chapters I read). Thanks for that so much, its great how much value (in term of return on time invested) you give to the people here. High quality work again. You are doing a great job. Highly valuable, thanks !!
I've been learning about the sunk cost fallacy but I never knew there was a term for it. I've been learning about it in regards to minimalism because learning about sunk cost fallacy has helped to realize how to let go of things so I can minimize my possessions and simplify my life so I only have things that serve me, or bring me joy. it's been very freeing, it was great learning it was an actual term. thank you for helping teach your viewers. I love your videos :) I found you yesterday and subscribed after I watch 10 or more videos lol. thanks for the great content!
I've used Kahneman's “peak-end rule theory” in the dating game with incredible success. So I meet women on a date and I'm not much of conversationist. So It's no surprise that these woman are bored out of their mind because they don't find me interesting, I get nervous and don't know what to say. Now here comes the interesting part: I always make sure at the very end of the date to create a pleasurable and memorable experience, and the way I do that is by simply hugging them goodbye, giving them a little kiss and telling them I can't wait to see them again. And by god does this work, it doesn't matter how bad the duration of the date went because the women always remember how it ended. It builds confidence and sexual attraction and the women can't wait to hear from me again!
Neil this is a great example of showing the abstract concepts of these great books such as by Kahneman and show how this concept work in the real life, in fact, I copied and paste your concept into my research, in the real issues that people are encountering, this is can be a book, applying all these great Heuristic rules on the real-life situation and see if it works or how can be the tweak for your particular situation or context and make it work and write about it. Then people will truly get these concepts, and how to apply these in the real-life situations and document it and this way these concepts burns into your neuron network of their brain firmware.
The best thing you do is explaining your ideas to the real world. So many channels do not do this, and it makes the 10 minutes watching their video a complete waste of time. Thank you so much for doing this.
The tree height is not anchoring but priming! You prime group one with a high number and thus their mind is "primed" to pick a higher number and vice versa. Anchoring is when you create a hook to a certain memory. For example if you make a joke and the punch line is you in a red dress. You only have to say red dress and the people that were their remember that situation where it first occurred and often even associate their feelings at that time with it. Exactly (a bit further on) the price of a Microwave is a form of anchoring. When you looked it up it's stored somewhere, seeing a microwave and a combination of price is an anchor to that piece of information of $199.
Well, that is not the case. Priming effect is somewhat different than anchoring. Say, for example, that instead of the 1200, you are given an anchor of a 100,000. Of course, your(or literally anyone's) answer would be anywhere near that. Not even 10k. Statistics shows, that in this case, the mean would be even lower than 700ft. It's about the effect that the anchor has on you. 1200ft, to an uninformed person, doesn't seem out of the context- it doesn't engages system 2 that well as your system 1 believes that yes, 1200 might be true. But when a no as large as a 100000 appears, your system 1 rejects it straight away., engaging your system 2 more heavily, and hence you come up with a more reasonable no. :700ft. So, if priming was the effect, of course a prime of 100000 would not give you an average of 90k or something, but if a 1200 gives 844, then the 100000 should have given somewhere around the 2k-ish mark, which isn't what happens.
This is a great summary, I have about 1/4 of the book left. Would highly recommend a listen or a read the whole thing though its a good book. While you may not be able to change your behavior but at least you know when you may not be so logical.
Absolutely love your channel man. I have read a few of the books you review and would like to read more but I find myself prioritising my time away from reading these days, also I find my concentration span is much diminished. Having these little overviews is therefore really awesome. Also gives me a better idea of whether I'll enjoy the book and if it will resonate with me. Keep up the great work.
The takeaway for me is to influence people with pain. If want to encourage the behavior I hide the pain (90% survival rate) or if I want to discourage behavior I highlight the pain (talk about losing loved ones by continuing to drink heavily)
your videos are all reshaping my thinking, I like to watch something on your channel in the mornings with coffee - no donuts although I have a box of donuts that cost me $$. They are not good for me :)
Man, I am simply getting addicted to your videos. Thank a lot for provide some great value to subscribers. Would you mind sharing what is the tool you use to make your videos. Thank again and keep up this great work. Cheers
my parents are addicted to the news. but its crazy to me because it always upsets them and they go on about all the negative things going on in the world, and i just wonder why even watch in the first place? sometimes i tell them that and they're like 'yeah i know' and change the channel but end up back there after 10 minutes lol
I'm studying economics/business at a German university, currently in my 3rd semester. Profs mentioned this book in several classes like management or marketing. cool that you put up a video about it. Good job! Just wanted to hear 7 habits of highly effective people because it's been a year since I read it and saw this video :) keep up the good work! I subscribed
Hi, really love your videos! About the coin flip: in most cases it's actually rational to not risk $1,000 for $1,100 in a coin flip, because value isn't distributed evenly to your $. The first $ you own can prevent you from dying, while the 1,000,000th $ will not have much impact on your life. Therefore, it's rational to be somewhat loss aversive.
Excellent summary. I listened to this audiobook twice already and it was such a tough listen for me. I understood all the takeaways but the heavy research content is very distracting. By the end of the book, I would forget the key points. Your summary could have saved me a second listen. Thanks for this
Great representation of the book! I've read the first few chapters of the book and have been putting it off, but this review definitely sparked my interest in it again. Thanks!
This is very very summarized, I'm currently reading the book and it has so much more. I encourage everybody to read it full and learn the concepts. It will fundamentally change how you think
There are so many fallacies and biases in this book and they are wonderfully explained, I can recommend this book to everyone! Helped my to explain human behavior and my decision just so much better. Regression to the mean was one of the more Important ones that didn't make it to the video but is just so important if you want to understand training.
+bryce e Ditto, I wonder if he took any voice and/or speech training classes, the flow and variation of his speech work magically together, especially for this type of material.
I stopped listening to the audio version of it about 40 percent into the book as I just couldn't focus on it and found the content too dry. Watching this summary makes me want to give the book another chance. Thanks for sharing!
I love you videos, The way you explain, The way you summarize with good examples. I appreciate your efforts. Hoping to see a lot of good videos in future.
You are a voracious reader! I was too a bit turned off as a kid from reading because my mom read voraciously.. romance novels! And not much got done around the house including quality time! Don't do media so much because not only is it like Bugs Bunny's eaction after being poisoned by the witch, it is more advice and celebrity gossip. My folks think that gambling is pure fun; I'd rather 'gamble' with investment funds. Thanks again my UA-cam friend!
Although these are things that we do every day and we know about them but it's eye opening to watch them from a different perspective, which this video shows perfectly
Hang on there, hang on there... a VERY important detail is missed most of the time with that "coin game" (for ex. winning 1100€ or losing 1000€). *It also depends on how much money you got!* A Millionaire can play this game 1000x but if you only have 1000€ left and you need it to pay your bills (for ex. the bill for your house or you'll be kicked out) it is very dumb to play that. If you win, great, you gained 100€. But if you lose u not only lost 1000€, you have a whole loota trouble now. So to sum up: To play this game to your advantage you need enough money so that you can afford to lose it.
Actually you don't need to be a millionaire as long as you can play a large number of times, and without having to put up the money on each loss. In other words, if you could run a credit and play 1000 times, your expected earnings is $100/game x 1000 games = $100,000, but more importantly, if you have bills to pay, is that you reduce your chance of coming out in the negative at all to a mere 7% (according to the binomial equation).
You say at the very end that "you need enough money so that you can afford to lose it." But that's not true: you could play with zero money to start, zero money to lose, and still cut the odds of losing anything to almost zero, if you could play enough times.
?? Lets say you start your first game: Winning 1100 or Losing 1000. In that first game you lose 1000$. You don't have 1000$? Congratulations! You are now in big trouble. Ofc you can't play that game again. To let the odds work for you, you have to have some start capital because it's very possible to lose the first 3 times for example. That means in that scenario you have to have 3000$ (+1000$ for the next game) or otherwise you can't keep on playing.
Came here for a summary before reading it and it is extremely useful! Now I am like reminding myself again while reading, which makes me easier to executing it to life instead of just understanding the theory but not using it. Thanks!
Big idea 1: System 1 (knee jerk, instinctual) vs System 2 (methodical, logical, deliberate) thinking Big idea 2: Anchoring Big idea 3: Science of Availability (availability bias) Big idea 4: Loss Aversion Big idea 5: Framing Big idea 6: Sunk Costs
Just finished this book. Awesome writing style and learned a lot. Thanks for making these summary's! Really helps grasping the essence from the book. What is your favorite book so far?
Well, I have advice for John. Only take a limited amount of money to the casino, dont bring any cards. Have your money in one pocket and the money you win in another. Once your gambling pocket is empty, get up and go. Dont use your other pocket to gamble. Its not easy sticking to it, but it works. My mum does so the few times she gambles and work colleauges do this aswell.
In 'Noise' and 'Thinking Fast and Slow' the basic theme is avoid biases, random noise and subjectivities by rhetorical analyses: Avoid Aristotle's intellectual fallacies (logos) and watch out for emotive persuasions. Also, Plato's Republic: gold, silver, bronze decision-makers
Another great opportunity to look in the mirror... and see what is. Thank you for your review that is, as usual, enjoyably straight forward and mind opening. :) Keep it coming. Regards.
This video really made me realise a lot I love the .. explanations between Viewing things differently people don't realise that others view things different and sometimes you make bad decisions for a reason .. and for no reason .. you would have had to make a bad desion always for a reason if you haven't Move on .. and find that reason
Thank you "FightMediocrity". Always awesome topics and presentations. I see in the comments that you've brought out the funny out of some people; but, that is just the way of man kind.
“You get your wife pregnant?" What If I am a woman watching this video? Do I need to pretend I am a man for 10 min or continue to be a woman and I just imagine what is to wait around for my husband to come back with awesome news?
The Sunk Costs fallacy is important, but there must be an opposite fallacy, perhaps on the line of "The grass is always greener on the other side of the road", like if you're stuck in a traffic jam, and afraid you'll be going slow for hours, while actually it might only be a few minutes. So you might decide to exit and take a different way, while you have ZERO information about the alternative route traffic AND you have a cost of changing routes. Similarly in relationships "Sunk cost fallacy" might help you stick around long enough to work through difficult problems that you would prefer to avoid completely, if you thought you could just find a better person to be with. So in these cases neither fast or slow thinking can tell you what to do, and it might be the best answer isn't to decide based on known facts, but a randomizer like flipping a coin, and then just sticking with that choice and hoping for the best.
Stopped practicing Christianity several months ago, still have all these book shelves full of Christian propaganda. I know I can't recoup the cost... bleh...
Just found out about your channel. Great stuff!! Keep doing what you're doing. You choose your words in such a way that makes it easy for us to understand this things that, in reality, we should already be doing! Sorry for my english. Not my native tongue, i'm from Brazil
You make learning interesting ❤. This video teaches in 10 mins what people spend their lives without figuring out :P Summarized ideas covered:- Big Idea 1: Slow-Logical system vs Fast-Automatic system Big Idea 2: Anchoring Big Idea 3: Science of Availability Big Idea 4: Loss Aversion Big Idea 5: Framing Big Idea 6: Sunk Costs Fallacy
A big thank you to everyone who pointed out that the two cliparts were mixed. I added annotations, but the sad guy is supposed to be next to "10% chance die" and the happier guy is supposed to be next to "90% chance live." Thanks again, and sorry about that! :)
Get any FREE audiobook of your choice here: audibletrial.com/fightmediocrity
If you want a suggestion for the free audiobook or for reading a book, here's FightMediocrity beginner's reading list:
1. Rich Dad Poor Dad: amzn.to/1VLAklY
2. The 4-Hour Workweek: amzn.to/1Qn5DA5
3. How to Win Friends and Influence People: amzn.to/1VLAoCe
4. The 48 Laws of Power: amzn.to/1VLAoSK
5. The Way of the Superior Man: amzn.to/1Qn5EDZ
6. Man's Search for Meaning: amzn.to/1Qn5GM0
7. Mastery: amzn.to/1VLArOu
8. Mindfulness for Beginners: amzn.to/1VLAs4S
9. The Obstacle is the Way: amzn.to/1VLAslw
+FightMediocrity I like imagining that the fellow on top is revelling in the danger of possible death, and the fellow on the bottom is distraught about how likely it is that he will survive hehe
+Straq Although, depression is serious business and shouldn't be joked about so please, if anyone is suffering, message me
+FightMediocrity Oh, I didn't noticed he is sad.
I really enjoyed your videos, especially this one. Can you tell me which kinds of careers this will apply
+FightMediocrity Where do these videos get animated?
Main Ideas in Thinking Fast and Slow:
1) There are 2 "thinking systems" in our minds. The first is fast, automatic. The second is slow, logical.
2) Anchoring: when you lack sufficient data to guess the value of something, you tend to hover around a pre-offered number.
3) Availability: a sort of confirmation bias. We tend to believe unlikely things have a high chance of happening because we keep looking at news/media portraying them.
4) Loss Aversion: if they have to risk, humans prefer not losing to winning.
5) Framing: How you present a situation affects your interpretation and feelings. Essentialy looking at the glass half empty or half full.
6) Sunk Costs: people believe because they've already spent money/time on something, they might as well see it through or continue. That is a mistake. Past events can't determine your future course of action.
Jheez, use a spoiler tag next time, some of us haven't seen the video yet...
thanks alot bro
I would add two more key points to this summary:
1. People are willing to risk more when losses seem guaranteed and risk less to preserve an apparent gain. This combines framing and loss aversion in a very important way.
2. Despite the illogical nature of System 1, it has orders of magnitude more power than System 2, so rather than try to ignore or inhibit System 1, we should understand its limitations so that we know how to tap its power more safely.
thanks
Had to watch this for homework. Thanks for simplifying the notes!
One of the reasons I like this channel is the creator not only summarizes the book but also describes how it can be applied to one's life. Keep 'em coming!
"...and the lion eats your kid. So you go home, and you're sad, but it's okay, you get your wife pregnant"
chill
Perhaps emotional attachment is a new arrival in the human animal?
😂😂😂
Until the end of the 19th century children in Denmark weren't counted as "living" untiol they'd survived their first five or so years, due to the number of child deaths. Just a historical fact.
Leon du Feu LMAO!!!!!😂😂😂
Leon du Feu
When the cave men get women laid af !
One reason for loss aversion is diminished marginal utility. Losing a 1000 might put a serious dent in persons budget maybe even causing that person to miss payment on important bills which would then cause other financial losses down the line. Winning 1100 on the other hand would only slightly improve person's life.
absolutely. well put.
It also depends on how many times you can play the game. If you can play as many times as you want, or at least a sufficiently large number of times, not only can you increase your total expected earnings ($100/game), you also reduce your chance of coming out in the negative at all. Your chance of coming out in the negative is 50% if you can only play once, but if you play 100 times you have a 69% chance of coming out ahead (that's your chance of winning at least 48 times). Or if a 31% chance of losing money is too high, if you could play 1000 times your chance of coming out in the red is only 7% - and, of course, your expected value is way higher.
Andrew, just a note, the expected earnings are $50/game.
Right, good point.
True. one way to change it would be to give them 1000 dollars and tell them they can keep it or they can flip a coin for double or nothing.
Thanks!
Timestamps:
1. Understanding System I and System II, and when to use each - 1:50
2. Anchoring - Leading you to believe/ set your mind to base your thinking on - 3:02
3. The Science of Availability - Don't be influenced by biased / limited sources of information by the time to draw conclusions - 4:36
4. Loss Aversion - Fear of loosing is larger than gaining when faced with options, i.e., investments - Use that to persuade people to make good decisions by focusing your argument on what they are likely to loose, rather than earn/gain - 5:58
5. Framing - A Dr saying you have 10% chances of dying is the same as if she said you have 90% chances of living. The emotional effects are going to be largely different. How can that concept be used to influence people? - 7:10
6. Sunk Cost Fallacy - Don't let your past decisions affect/influence on what's actually good for you now - 7:34
I read this book many years back in 2014, and at that time I was working for my uncle, doing a consulting job...I told my uncle about what I had read and how interesting it would be to apply what I had learnt, and my uncle said, and I quote: " What you can learn by doing can't be replaced by a few arcane , esoteric and fancy jargon, meant for academics who deceive themselves into believing that they have some incisive insight into how people think, believe and determine. Business isn't complicated and marketing certainly isn't". What he meant to say was that what instinct can achieve , knowledge can never match, unless of course people design things with the sole intention of satisfying their egos. I am in academia now, just another opportunity to get a receipt for hard work, but some of the best professors I have won't even be hired by God to spread the gospel. Lesson: Never be bogged down by theory; experiment and find out for yourselves. Theories aren't immutable.
Yup, and throughout history it turned out humans were more wrong than not about everything.
Some may read the book and find that it solves some ideas and explanations they’ve been stumped on subconsciously
I'm so in love with your videos it's ridiculous. I get withdrawal symptoms while waiting for your next upload.
Ciaran Cristian Brooke Russell :)))))))))
+FightMediocrity hi man thanks for the value....is there a mail adress I can mail you at? have an opportunity I would like to diacuss with you that can add value to both of us. good day.
Tiantaoh@gmail.com
I personally wish success and happiness for you and anyone reading this! You WILL overcome your tribulations by remaining that GREAT person that you are! I KNOW it! Just keep going.
same to you❤❤ Wish you lots of happy days🎉🎉
Good stuff. Something Ive always said that is a 'sunk cost'. Forcing yourself to finish food. Its not even just about waste because you end up paying for displeasure.
You got soooooo much more out of this book than I did. I just read it a few days ago, and I only understood about 10%. Or rather, I missed out on 90% of the content!! I'll need to read it again, thanks for the great summary!!
so basically you read and don't understand.
@@uzouma9893 yeah, that's what happened probably..
@@manasj.narvekar7945you don’t need to agree with him. You read in the very least
I have no idea how I found your channel but im so glad I did, I love it so much, just subscribed, last year I found out about self help and self help books and I fell in love, they have helped my personal development so much, im currently reading 7 habits of high effective people and I love it, thank you so much for all these videos
I tried everything, but my kid keeps dying, pls help!
+B on your Screen - CSGO Pro tip. Don't get more. Then they wont die.
Tell him to RUSH B NO STOP BLYAT.
fix your hormones, its all about it, not about this bullshit in books
B on your Screen - CSGO
Keep spawning more broodlings!!
You have to read this book about 50x to take in all the information, before this I never knew how many biases we actually operate by. But even knowing their existence makes it so much easier to make clearer decisions because now you can stop and ask yourself which of your systems is really making the decision. I wonder if in a few million years, if we make it as a species, we'll have more systems or complete control of our existing ones. Great video as always dude!
Becoming Alpha Hahaha, I know right? It's super dense, it's like taking the entire field of behavioral economics and trying to shove it into a single book :))
Thanks no wonder I couldn't understand
The summary is great and digestible but reading your comment made me rethink if I should buy the book. Hahaha
I started reading this book months back but never finished it. Its dry and boring but the content is excellent. However, the points described in your video are great and accurately reflect the major ideas (at lease for the chapters I read). Thanks for that so much, its great how much value (in term of return on time invested) you give to the people here. High quality work again. You are doing a great job. Highly valuable, thanks !!
I've been learning about the sunk cost fallacy but I never knew there was a term for it. I've been learning about it in regards to minimalism because learning about sunk cost fallacy has helped to realize how to let go of things so I can minimize my possessions and simplify my life so I only have things that serve me, or bring me joy. it's been very freeing, it was great learning it was an actual term. thank you for helping teach your viewers. I love your videos :) I found you yesterday and subscribed after I watch 10 or more videos lol. thanks for the great content!
I've used Kahneman's “peak-end rule theory” in the dating game with incredible success. So I meet women on a date and I'm not much of conversationist. So It's no surprise that these woman are bored out of their mind because they don't find me interesting, I get nervous and don't know what to say. Now here comes the interesting part: I always make sure at the very end of the date to create a pleasurable and memorable experience, and the way I do that is by simply hugging them goodbye, giving them a little kiss and telling them I can't wait to see them again. And by god does this work, it doesn't matter how bad the duration of the date went because the women always remember how it ended. It builds confidence and sexual attraction and the women can't wait to hear from me again!
Neil McIntosh true
Last impressions stick. I usually due the opposite. I do well conversational ly but I don't really "close" well
Neil this is a great example of showing the abstract concepts of these great books such as by Kahneman and show how this concept work in the real life, in fact, I copied and paste your concept into my research, in the real issues that people are encountering, this is can be a book, applying all these great Heuristic rules on the real-life situation and see if it works or how can be the tweak for your particular situation or context and make it work and write about it. Then people will truly get these concepts, and how to apply these in the real-life situations and document it and this way these concepts burns into your neuron network of their brain firmware.
Nice
Lolwut? In the first place, why would they be receptive to your advances at the end of the date if you have badly tanked most of the date?
The best thing you do is explaining your ideas to the real world. So many channels do not do this, and it makes the 10 minutes watching their video a complete waste of time. Thank you so much for doing this.
Thanks for the video, now I can take over the world.
How did it go?
How is it going?
Did system 1 say it, but system 2 never got around to it?
He renamed himself as Covid-19
@@shawondutta7881 xd
I had to read this book 3 times just to absorb everytning properly. You have summarized it very well & saved alot of people the pain. Thumbs up!!👍
The tree height is not anchoring but priming!
You prime group one with a high number and thus their mind is "primed" to pick a higher number and vice versa.
Anchoring is when you create a hook to a certain memory. For example if you make a joke and the punch line is you in a red dress.
You only have to say red dress and the people that were their remember that situation where it first occurred and often even associate their feelings at that time with it.
Exactly (a bit further on) the price of a Microwave is a form of anchoring. When you looked it up it's stored somewhere, seeing a microwave and a combination of price is an anchor to that piece of information of $199.
Well, that is not the case. Priming effect is somewhat different than anchoring.
Say, for example, that instead of the 1200, you are given an anchor of a 100,000. Of course, your(or literally anyone's) answer would be anywhere near that. Not even 10k. Statistics shows, that in this case, the mean would be even lower than 700ft. It's about the effect that the anchor has on you.
1200ft, to an uninformed person, doesn't seem out of the context- it doesn't engages system 2 that well as your system 1 believes that yes, 1200 might be true.
But when a no as large as a 100000 appears, your system 1 rejects it straight away., engaging your system 2 more heavily, and hence you come up with a more reasonable no. :700ft.
So, if priming was the effect, of course a prime of 100000 would not give you an average of 90k or something, but if a 1200 gives 844, then the 100000 should have given somewhere around the 2k-ish mark, which isn't what happens.
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This is a great summary, I have about 1/4 of the book left. Would highly recommend a listen or a read the whole thing though its a good book. While you may not be able to change your behavior but at least you know when you may not be so logical.
harryman11 Yeah, behavioral economics really opens up your mind to how crazy and ridiculous some of our behaviors are :)
Absolutely love your channel man. I have read a few of the books you review and would like to read more but I find myself prioritising my time away from reading these days, also I find my concentration span is much diminished. Having these little overviews is therefore really awesome. Also gives me a better idea of whether I'll enjoy the book and if it will resonate with me. Keep up the great work.
Great summary of Thinking, Fast and Slow. I find your summary and illustration more entertaining than some. Subscribed!
TFAS is one of my favourite books. This video condenses the core points into an easy to understand format. Definitely subscribed!
Hi, I'm planning to buy this book. Should I buy one even though I already watch the summary??
The takeaway for me is to influence people with pain. If want to encourage the behavior I hide the pain (90% survival rate) or if I want to discourage behavior I highlight the pain (talk about losing loved ones by continuing to drink heavily)
Great review! Thanks so much. By the way, could you share with me what authoring tools you use to produce this amazing videos?
Marcial Rojo Thanks, and it's called VideoScribe :)
Bro you know your stuff ❤ thank you so so much honestly, i didn't get my head around these heuristics until I ran into your video
That! my friend, was the best I've watched! from the content to the clip-arts... EVERYTHING!
1:15 System 1 and system 2
3:38 Anchoring
4:35 Science of availability
6:06 Loss aversion
7:20 framing
8:14 sunk costs
your videos are all reshaping my thinking, I like to watch something on your channel in the mornings with coffee - no donuts although I have a box of donuts that cost me $$. They are not good for me :)
Man, I am simply getting addicted to your videos. Thank a lot for provide some great value to subscribers. Would you mind sharing what is the tool you use to make your videos. Thank again and keep up this great work. Cheers
my parents are addicted to the news. but its crazy to me because it always upsets them and they go on about all the negative things going on in the world, and i just wonder why even watch in the first place? sometimes i tell them that and they're like 'yeah i know' and change the channel but end up back there after 10 minutes lol
Strych Nine Yeah, the whole "what is this world headed to" thing is so annoying :))
I'm studying economics/business at a German university, currently in my 3rd semester. Profs mentioned this book in several classes like management or marketing. cool that you put up a video about it. Good job!
Just wanted to hear 7 habits of highly effective people because it's been a year since I read it and saw this video :) keep up the good work! I subscribed
Great message from the book and thanks to one of the greatest messengers on UA-cam!
Hi, really love your videos! About the coin flip: in most cases it's actually rational to not risk $1,000 for $1,100 in a coin flip, because value isn't distributed evenly to your $. The first $ you own can prevent you from dying, while the 1,000,000th $ will not have much impact on your life. Therefore, it's rational to be somewhat loss aversive.
Love these videos giving a gist of the most useful books.
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Excellent summary. I listened to this audiobook twice already and it was such a tough listen for me. I understood all the takeaways but the heavy research content is very distracting. By the end of the book, I would forget the key points. Your summary could have saved me a second listen. Thanks for this
Great representation of the book! I've read the first few chapters of the book and have been putting it off, but this review definitely sparked my interest in it again. Thanks!
David Le Awesome! :)
This is very very summarized, I'm currently reading the book and it has so much more. I encourage everybody to read it full and learn the concepts. It will fundamentally change how you think
its so fucking cool that i've watched this guy since he had about 80k subs.
Grats man.
There are so many fallacies and biases in this book and they are wonderfully explained, I can recommend this book to everyone! Helped my to explain human behavior and my decision just so much better. Regression to the mean was one of the more Important ones that didn't make it to the video but is just so important if you want to understand training.
I think his voice and style of video making is going to catch on. I could listen to him talk about anything
+bryce e Ditto, I wonder if he took any voice and/or speech training classes, the flow and variation of his speech work magically together, especially for this type of material.
+bryce e Yeah, Napolean Dynamite is awesome!!.........
+Andrew Safabakhsh so true
@@KarmaticEvolution lol there're some things called scripts and cues
ua-cam.com/video/PryN5yDAJR0/v-deo.html
this is certainly amongst the top 3 most relevant channels on UA-cam 👏👏👏👍
6:50 "There is a 10% chance you are going to die"
No, there is a 100% chance you are going to die.
+ThumperOne You dont understand humour I guess ahah
+Citriano Torres But, but there's a 0% chance, you are going to live.
Not necessarily 100% anymore. :)
ua-cam.com/video/PryN5yDAJR0/v-deo.html
Thank you for all your videos. it's very useful and informative. may you continue to share your thoughts and ideas to people. Alessandro
please when u write feet, can u like ( meters also ) ? we in the rest of the world use meters :P
goal.com
Ikr
start using feet then
I use both 😝
ua-cam.com/video/PryN5yDAJR0/v-deo.html
Your ability to summaries things are exceptionally good!
I just LOVE the way you presents the book. ❤️
I stopped listening to the audio version of it about 40 percent into the book as I just couldn't focus on it and found the content too dry. Watching this summary makes me want to give the book another chance. Thanks for sharing!
I started reading this book. This helps me set a basic outline. Thanks for the vide!
I love you videos, The way you explain, The way you summarize with good examples. I appreciate your efforts. Hoping to see a lot of good videos in future.
Thank you for the video! I tried to read but stopped because is pretty long and complicated. I love your videos! Great work #brazil
Victor Valezim Haha, thanks Victor! :)
#Brasil
Absolutely love your voice and narration style.!
You are a voracious reader! I was too a bit turned off as a kid from reading because my mom read voraciously.. romance novels! And not much got done around the house including quality time! Don't do media so much because not only is it like Bugs Bunny's eaction after being poisoned by the witch, it is more advice and celebrity gossip. My folks think that gambling is pure fun; I'd rather 'gamble' with investment funds. Thanks again my UA-cam friend!
Michel Sennett Hahaha, thanks for writing Michel! :)
Although these are things that we do every day and we know about them but it's eye opening to watch them from a different perspective, which this video shows perfectly
Hang on there, hang on there... a VERY important detail is missed most of the time with that "coin game" (for ex. winning 1100€ or losing 1000€). *It also depends on how much money you got!* A Millionaire can play this game 1000x but if you only have 1000€ left and you need it to pay your bills (for ex. the bill for your house or you'll be kicked out) it is very dumb to play that. If you win, great, you gained 100€. But if you lose u not only lost 1000€, you have a whole loota trouble now. So to sum up: To play this game to your advantage you need enough money so that you can afford to lose it.
+Suplexmaschine Does you win 1000/1100 means you win 1000/1100? Normally, you don't minus the "entrance fee" from your winnings.
Actually you don't need to be a millionaire as long as you can play a large number of times, and without having to put up the money on each loss. In other words, if you could run a credit and play 1000 times, your expected earnings is $100/game x 1000 games = $100,000, but more importantly, if you have bills to pay, is that you reduce your chance of coming out in the negative at all to a mere 7% (according to the binomial equation).
I didn't say you have to be a Millionaire to play it, I just used it as an example.
You say at the very end that "you need enough money so that you can afford to lose it." But that's not true: you could play with zero money to start, zero money to lose, and still cut the odds of losing anything to almost zero, if you could play enough times.
?? Lets say you start your first game: Winning 1100 or Losing 1000. In that first game you lose 1000$. You don't have 1000$? Congratulations! You are now in big trouble. Ofc you can't play that game again. To let the odds work for you, you have to have some start capital because it's very possible to lose the first 3 times for example. That means in that scenario you have to have 3000$ (+1000$ for the next game) or otherwise you can't keep on playing.
Came here for a summary before reading it and it is extremely useful! Now I am like reminding myself again while reading, which makes me easier to executing it to life instead of just understanding the theory but not using it. Thanks!
it really is alike from the book "why smart people make big money mistake" by Gary Belsky
You are the best!! Thanks for the video! Keep up the great work
Mike Jones Thanks Mike! :)
I didn't know Napolean Dynamite was making videos now... Go Pedro!.....
*This is probably the best mind opener and knowledgeful video i have ever seen in my life*
imagine if u actually read the book bro
My fav book; it changed so much of my thinking
+Mr. Ding can you briefly elaborate more on how it did please? im thinking to read very soon
Is your dp of jake ?
God bless this show forever and all poor and mediocre people become rich
Great video!! :) Very informative & great examples!
I'm also happy to see Jen there!!
What program are you using for the animation? Love the videos and was thinking that I could use them for my current semester.
Big idea 1: System 1 (knee jerk, instinctual) vs System 2 (methodical, logical, deliberate) thinking
Big idea 2: Anchoring
Big idea 3: Science of Availability (availability bias)
Big idea 4: Loss Aversion
Big idea 5: Framing
Big idea 6: Sunk Costs
Just finished this book. Awesome writing style and learned a lot. Thanks for making these summary's! Really helps grasping the essence from the book. What is your favorite book so far?
Bhajbhdisjh
GREAT GREAT GREAT VIDEO! You presented a lot of useful information!
Yehuda HaMaccabi Thank you!! :) I get something positive from you on every video! :)
FightMediocrity Thank you for your reply. You do such an awesome job on every video!
+Yehuda HaMaccabi I'll stop this before you two get stuck into a loop
Davide Minicelli Thank you for your reply and assistance.
Understanding fast and slow thinking really matters. As a teachers I adapted it to problem solving process.
its similar to the book titled: "the art of thinking clearly" by rolf dobelli
Thank you👍!
Well, I have advice for John. Only take a limited amount of money to the casino, dont bring any cards. Have your money in one pocket and the money you win in another. Once your gambling pocket is empty, get up and go. Dont use your other pocket to gamble. Its not easy sticking to it, but it works. My mum does so the few times she gambles and work colleauges do this aswell.
Haha, just threw away a lot of useless stuff and then i saw this video.
Well done. Great video!
iSarCasm865 Haha, that's awesome! And thank you! :)
This was a great summary! I found the first part of the book super dry and never got around to finishing but will skip forward to the later chapters.
In 'Noise' and 'Thinking Fast and Slow' the basic theme is avoid biases, random noise and subjectivities by rhetorical analyses: Avoid Aristotle's intellectual fallacies (logos) and watch out for emotive persuasions.
Also, Plato's Republic: gold, silver, bronze decision-makers
Throwing that chair away right now
Keeping the candy though
XD
goal.com
ua-cam.com/video/PryN5yDAJR0/v-deo.html
this book feels like common sense in all honesty. Thanks you saved me some money
Sevin L haha you just used your intuitive thinking. What a fool!
Another great opportunity to look in the mirror... and see what is. Thank you for your review that is, as usual, enjoyably straight forward and mind opening. :)
Keep it coming. Regards.
Claude Nadon Haha, thanks so much!
@fightMediocrity you're out here saving lives man
You're vids are awesome. 👌🏾
Ikr
No
THERE AMAZING
Your comments are awesome. 👍
This video really made me realise a lot I love the .. explanations between
Viewing things differently people don't realise that others view things different and sometimes you make bad decisions for a reason .. and for no reason ..
you would have had to make a bad desion always for a reason if you haven't
Move on .. and find that reason
If you asked me about heighth of anything in feet, I'd ask how much is that in meters?
Thanks a lot. So informative and helpful! Your short video helped me to understand a number of difficult concepts.
1:12 e-rational and e-logical. Must be new Apple products
The workbook called 30 Days to Reduce Stress by Harper Daniels has some mindfulness lessons I enjoyed.
In a nutshell: Darwin wins over Kant
uhhh...no.
Your videos are so good. It learnt so much in less time. Keep up the good work.
I wouldn't play the flip coin game even if it was for a million dollar.
Thank you "FightMediocrity". Always awesome topics and presentations. I see in the comments that you've brought out the funny out of some people; but, that is just the way of man kind.
“You get your wife pregnant?" What If I am a woman watching this video? Do I need to pretend I am a man for 10 min or continue to be a woman and I just imagine what is to wait around for my husband to come back with awesome news?
The vidéo is good but the statement get your wife pregnante bothered me
The Sunk Costs fallacy is important, but there must be an opposite fallacy, perhaps on the line of "The grass is always greener on the other side of the road", like if you're stuck in a traffic jam, and afraid you'll be going slow for hours, while actually it might only be a few minutes. So you might decide to exit and take a different way, while you have ZERO information about the alternative route traffic AND you have a cost of changing routes. Similarly in relationships "Sunk cost fallacy" might help you stick around long enough to work through difficult problems that you would prefer to avoid completely, if you thought you could just find a better person to be with. So in these cases neither fast or slow thinking can tell you what to do, and it might be the best answer isn't to decide based on known facts, but a randomizer like flipping a coin, and then just sticking with that choice and hoping for the best.
I'm unsubscribing from Vice news...
Why?
Your videos: each,always better than the last!
Stopped practicing Christianity several months ago, still have all these book shelves full of Christian propaganda. I know I can't recoup the cost... bleh...
Donate those books. Or sell them. Either way, it clears your shelves for better books.
what a great video! do you have more videos related to behavorial economics?
thanks!
Duhigg "The power of habits"
Just found out about your channel.
Great stuff!!
Keep doing what you're doing. You choose your words in such a way that makes it easy for us to understand this things that, in reality, we should already be doing!
Sorry for my english. Not my native tongue, i'm from Brazil
great videos dude just found about you yesterday and they have taught me a lot ,really helpful thank you;
Fantastic summary of biases that affect us all daily!
You make learning interesting ❤. This video teaches in 10 mins what people spend their lives without figuring out :P Summarized ideas covered:-
Big Idea 1: Slow-Logical system vs Fast-Automatic system
Big Idea 2: Anchoring
Big Idea 3: Science of Availability
Big Idea 4: Loss Aversion
Big Idea 5: Framing
Big Idea 6: Sunk Costs Fallacy
wow...I would judge this to be one of the best videos on this channel.
my favorite: stay away from *mainstream media*