"Daniel Kahneman's" book "Thinking fast and slow" is kind of very interesting plot about human behavior.
System 1 ---> Lion eats if we go nearby (experience)
System 2 ---> If one of your acquaintances dies when bird flew over the head, then your illogical belief system starts...
Idea #1
understanding system 1 and 2 is idea #1, and if you start living by understanding sys 1 and 2.
Eg: You know that one of the most people's belief system does not work, but because of most people think so, you stick to it...at least externally...
Idea #2
Understanding the anchoring...
If you've given the hint... in that sense of scope, you will be thinking...
Eg: If you have given a question about the price of the oven and if you don't know and hint is given like it is between 500 and 1000, automatically your thinking process revolves/adjusts between the mean price mostly...
Idea #3
The science of availability...
Eg: If plane crashes and one of your friend died in it, automatically you will become either aware or beware about your plane journey...by either cancelling all your plane trips or travelling by plane with lot of fear.
Idea #4
Loss aversion
Eg: Most of us having a fear of loss. this is called as loss aversion. in this, if you are asked to play a game to flip a coin and if you get heads then you will be rewarding with Rs. 1000 and if you get tails, then you have to pay Rs. 1000.
most of us won't play this game thinking that the probability of gaining...
if you think deeply, the chances will be 50-50%...even the reward is higher...
Idea #5
understanding framing...
Eg: If doctor says 10% chances of death, then you will be happy...and if says only 90% of chances of survival... then you will be sad...
this is what in which way mostly you understand the situations...
Idea #6
sunk costs...
Eg: If you bought a bag of candies, and you know it is not good for health, even then we tend to eat mostly daily ...because we bought them...
if you have guts to throw them out by understanding it hurts your health, then it is a good decision...most of us don't.
