Book contents
- Making Decisions: Analytics, Cognition, and Application
- Making Decisions: Analytics, Cognition, and Application
- Copyright page
- Dedication
- Contents
- Figures
- Tables
- Preface
- Acknowledgments
- Copyright Acknowledgements
- Part I Analytics: Probability, Evaluation, Decision Trees, and Strategies for Decision Making
- Introduction to Part II: Cognitive Processes of Decision Making
- 5 Heuristics: Assumptions and Quick Rules of Thumb We All Use, But Maybe Shouldn’t
- 6 Prospect Theory: Psychological Aspects beyond Expected Value
- 7 Two Systems: A Descriptive Model That Explains How People Make Decisions
- 8 Decisions Are Made Based on Our Memories, But How Reliable Are Our Memories?
- 9 Psychology + Economics = Behavioral Economics = Ways to (Gently) Influence Decisions
- Part III Applications, Examples, and Selected Topics
- References
- Index
- References
7 - Two Systems: A Descriptive Model That Explains How People Make Decisions
from Introduction to Part II: Cognitive Processes of Decision Making
Published online by Cambridge University Press: 23 October 2025
Book contents
- Making Decisions: Analytics, Cognition, and Application
- Making Decisions: Analytics, Cognition, and Application
- Copyright page
- Dedication
- Contents
- Figures
- Tables
- Preface
- Acknowledgments
- Copyright Acknowledgements
- Part I Analytics: Probability, Evaluation, Decision Trees, and Strategies for Decision Making
- Introduction to Part II: Cognitive Processes of Decision Making
- 5 Heuristics: Assumptions and Quick Rules of Thumb We All Use, But Maybe Shouldn’t
- 6 Prospect Theory: Psychological Aspects beyond Expected Value
- 7 Two Systems: A Descriptive Model That Explains How People Make Decisions
- 8 Decisions Are Made Based on Our Memories, But How Reliable Are Our Memories?
- 9 Psychology + Economics = Behavioral Economics = Ways to (Gently) Influence Decisions
- Part III Applications, Examples, and Selected Topics
- References
- Index
- References
Summary
The two-systems descriptive model of human decision making was popularized by Daniel Kahneman in his book Thinking Fast and Slow ( 2011). System 1 is on whenever we are awake, requires almost no deliberate effort, and is quick. When System 1 detects that a question or decision requires more thoughtful or deliberate analysis, it will call in System 2. However, System 1 can sometimes be impetuous and overconfident and make snap decisions before System 2 has had the opportunity to review what System 1 is doing. System 2, while capable of more deliberate thinking, can often be lazy and simply accept the conclusion that System 1 has reached. This descriptive model explains how people will sometimes arrive quickly at a conclusion with no effort, and how a more thorough analysis will be conducted if and when System 2 engages.
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- Making Decisions: Analytics, Cognition, and Application , pp. 91 - 99Publisher: Cambridge University PressPrint publication year: 2025
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