Best Selling Books by Daniel Kahneman

The assumption that utility is always maximized allows often surprising inferences about the nature of the desires that guide people's ever-rational choices. This methodology has had many uses and undeniably has charm for economists, but it rests on the shaky foundation of an implausible and untestable assumption. In this paper we discuss a version of the utility maximization hypothesis that can be tested - and we find that it is false.

Many decisions about strategy require that senior executives make evaluative judgments on the basis of extensive, complex information. A disciplined, sequential approach can mitigate common errors and improve the quality of both one-off and recurrent decisions in an array of business domains. The process described in this article is easy to learn, involves little additional work, and (within limits) leaves room for intuition.

The study of intuitions and errors in judgment under uncertainty is complicated by several factors: discrepancies between acceptance and application of normative rules; effects of content on the application of rules; Socratic hints that create intuitions while testing them; demand characteristics of within-subject experiments; subjects' interpretations of experimental messages according to standard conversational rules. The positive analyses of judgmental error in terms of heuristics may be supplemented by a negative analysis, which seeks to explain why the correct rule is not intuitively compelling. A negative analysis of non-regressive prediction is outlined. (Author).

In contrast to formal theories of judgment and decision, which employ a single notion of probability, psychological analyses of responses to uncertainty reveal a wide variety of processes and experiences, which may follow different rules. Elementary forms of expectation and surprise in perception are reviewed. A phenomenological analysis is described, which distinguishes external attributions of uncertainty (disposition) from internal attributions of uncertainty (ignorance). Assessments of uncertainty can be made in different modes, by focusing on frequencies, propensities, the strength of arguments, or direct experiences of confidence. These variants of uncertainty are associated with different expressions in natural language; they are also suggestive of competing philosophical interpretations of probability.

Bayangkan dua dokter di kota yang sama memberi diagnosis yang berbeda bagi pasien yang identik—atau dua hakim memberi hukuman yang berbeda ke orang yang mela-kukan kejahatan yang sama. Sekarang bayangkan dokter yang sama atau hakim yang sama membuat keputusan yang berbeda, tergantung dia membuatnya pada hari Senin atau Rabu, sebelum atau sesudah makan siang. Itulah contoh-contoh noise (kegaduh-an): keragaman di pertimbangan yang seharusnya identik. Di buku ini, Daniel Kahneman, Olivier Sibony, dan Cass R. Sunstein menunjukkan ba-gaimana kegaduhan menghasilkan kesalahan di banyak bidang, termasuk kedokteran, hukum, kesehatan masyarakat, prakiraan ekonomi, ilmu forensik, perlindungan anak, strategi kreatif, tinjauan kinerja, dan penerimaan pelamar kerja. Kita semua membuat lebih banyak pertimbangan buruk daripada yang kita duga. Penuh gagasan baru dan menggunakan pendekatan yang membuat Thinking, Fast and Slow serta Nudge menjadi buku-buku yang dibaca banyak orang, Noise menunjukkan batas-batas kita dalam membuat keputusan, dan menawarkan jalan praktis untuk memperbaiki cara kita berpikir.

In this work the author, a recipient of the Nobel Prize in Economic Sciences for his seminal work in psychology that challenged the rational model of judgment and decision making, has brought together his many years of research and thinking in one book. He explains the two systems that drive the way we think. System 1 is fast, intuitive, and emotional; System 2 is slower, more deliberative, and more logical. He exposes the extraordinary capabilities, and also the faults and biases, of fast thinking, and reveals the pervasive influence of intuitive impressions on our thoughts and behavior. He reveals where we can and cannot trust our intuitions and how we can tap into the benefits of slow thinking. He offers practical and enlightening insights into how choices are made in both our business and our personal lives, and how we can use different techniques to guard against the mental glitches that often get us into trouble. This author's work has transformed cognitive psychology and launched the new fields of behavioral economics and happiness studies. In this book, he takes us on a tour of the mind and explains the two systems that drive the way we think and the way we make choices.