STREET DOGS: Daniel Kahneman’s dos and don’ts
Co-operate, think long term and curb your natural impulse. Here’s more
From the Evening Standard, some dos and don’ts from Daniel Kahneman: Do keep natural impulse in check. Kahneman says we have two systems of thought: fast, based on intuition and impulse, and slow, based on calculation. We naturally lean to fast, but need to know when to distrust it. Do teach yourself to think long term. The "focusing illusion" makes the here and now appear the most pressing concern but that can lead to skewed results. Do co-operate. "Bias blindness" means it’s easier to recognise the errors of others than our own, so ask for constructive criticism and be prepared to call out others on what they could improve. Do present totals rather than losses for more rational reactions. People focus on differences rather than stand-alone objects. So investors are more affected by changes in wealth than by wealth itself. Counteract this by telling them how much they have rather than how much they have lost. Do keep things in perspective. "Experienced" well-being is different to "...
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