the expected answer. In this video, you’ll find strategies to build up
your No muscle.FROM THE BOX OF CRAYONS
LAB
Daniel Kahneman won the Nobel prize in economics in 2002 for
his work on the psychology of judgment and decision-making, and
the field more generally known as behavioural economics. He’s
best known for his book Thinking, Fast and Slow, which explains
that we have two decision-making processes: a fast, instinctual
“gut-feeling” one, and a slower, more rational one. The fast-
thinking approach is very good and accurate—except when it isn’t,
and then our various cognitive biases make for very poor decision-
making indeed. The Strategy Question can help us avoid at least
two of these biases.
The first bias is the planning fallacy, which can be summed up
as saying that we’re lousy at figuring out how much time
something will take us to complete. It’s a combination of
overestimating our abilities and, to add insult to injury,
underestimating the degree to which we are overestimating. We
think we can do more than we can; the Strategy Question helps us
be more realistic about what’s actually possible.
The second bias, known as prospect theory, tells us that loss and
gain are not measured equally. Losing $100, say, feels worse than