Thinking fast slowly
The use of the core revolutionary concepts of System 1 versus System 2 (fast intuitive mind versus slow analytical mind), Econs (classical economics assumes rational decision makers) versus humans (psychology shows real people humans make irrational choices) and the experiencing self (how we feel in the moment) versus the remembering self (how we remember experiences) provides us with framework to make accurate decisions. It has fundamentally altered the way we think and has contributed enormously towards helping us make better decisions across personal, professional and organizational setting.
A good portion of the book is dedicated to prospect theory. This theory examines how people evaluate potential losses and gains, demonstrating that we are generally loss averse. Kahneman also discusses the implications of these cognitive insights for fields like economics, medicine, and public policy. He emphasizes the importance of understanding and acknowledging our mental shortcuts to make better decisions and improve our judgment.
This book probably would not have been possible without this friendship two individuals with very different and the unique backgrounds. In the book The Undoing Project: A Friendship That Changed Our Minds by Michael Lewis [1] documents the collaboration of two unlikely friends. Danny Kahneman, a Holocaust survivor and introspective thinker, and Amos Tversky, a confident and fun-loving mathematician. They identified various cognitive biases and heuristics that impact our judgment, such as loss aversion, anchoring, and developed the prospect theory for which they won the Nobel Prize.
In the final chapter Kahneman does something unique and interesting. Most authors, in the concluding chapter, end up summarizing the key topics they had covered. Kahneman starts in the beginning by talking about the key distinctions namely System 1 and System 2, econ and humans, and experiencing self and remembering self. He reverses the order in the concluding chapter. This mirrors the process of learning akin to how we first absorb individual ideas and then we step back and see how they connect. Reversing the order encourages System 2 engagement. This is brilliant as it forces us to think critically rather than passively absorbing information. It transforms individual concepts into an interconnected framework making the book more impactful in changing how we think.
I wonder how this framework could impact people struggling with mental health issues such as MCI (mild cognitive impairment) or those with ADHD (attention deficit hyperactivity disorder). Mild cognitive impairment (MCI) is an early stage of memory or other cognitive ability loss (such as language or visual/spatial perception) in individuals who maintain the ability to independently perform most activities of daily living [2].
- Approximately 12% to 18% of people age 60 or older are living with MCI.
- An estimated 10% to 15% of individuals living with MCI develop dementia each year.
- About one-third of people living with MCI due to Alzheimer’s disease develop dementia within five years [2]
It is estimated that, at present, in US there are approximately 7 million people suffering from MCI (20 million worldwide). 15% of these go on to develop dementia within a year. A staggering 90% of people with dementia are unaware of it. Of the people with dementia, 15% go on to develop Alzheimer’s disease within 2 years. There is no cure for MCI, dementia or Alzheimer’s. People with MCI have difficulty in complex reasoning problem solving and making decisions. They rely heavily on System 1 and experience cognitive overload and decision fatigue when trying to engage in System 2 tasks. Their risk perceptions and judgments are compromised as articulated in the Prospect theory where people weigh potential losses more heavily than gains. ADHD is a developmental disorder characterized by an ongoing pattern of one or more of the following types of symptoms:
- Inattention, such as having difficulty paying attention, keeping on task, or staying organized
- Hyperactivity, such as often moving around (including during inappropriate times), feeling restless, or talking excessively
- Impulsivity, such as interrupting, intruding on others, or having trouble waiting one’s turn [3]
Many times, ADHD goes undiagnosed, more so, among adults. According to recent statistics [4] reported by more than 8.7 million adults in the U.S. have been diagnosed with Attention-Deficit/Hyperactivity Disorder (ADHD). The rate has increased over the last two decades, from 6.1% of American adults to 10.2%. Since 2020, there has been a significant increase in adults seeking treatment for ADHD.
MCI is a big issue for those who are diagnosed with it. It wrecks their lives. impacts their loved ones and many a times negatively impacts the financial well-being. Many lose their jobs, driver’s licenses and are forced to adopt expensive alternatives. ADHD, in particular, adult ADHD has a similar impact on people’s lives. For those who, unfortunately, are diagnosed with it is a double whammy. The chart below shows how the framework outline by Kahneman impacts both conditions.
| Cognitive Aspect | Mild Cognitive Impairment (MCI) | Attention Deficit Hyperactivity Disorder (ADHD) |
| System 1: Intuition, Heuristics, and Biases | Over-reliance on heuristics due to impaired memory and reasoning | Over-reliance due to impulsivity and difficulty sustaining attention |
| System 2: Slow, Effortful Thinking | Struggles with deliberate reasoning due to memory and cognitive decline | Struggles with sustained focus, leading to avoidance of System 2 effort |
| Decision-Making | Difficulty processing new information, leading to indecision or risk aversion | Impulsivity leads to quick decisions without full deliberation |
| Cognitive Load | Fatigue from effortful thinking, making it harder to engage System 2 | Difficulty maintaining focus on complex tasks, leading to avoidance of System 2 thinking |
| Memory and Biases | Prone to errors due to reliance on faulty recall | Prone to errors due to inattention and distorted recall |
There are no direct studies that leverage the groundbreaking framework outlined by Kahneman in the area of MCI or adult ADHD. However, research into ADHD’s cognitive processes aligns with Kahneman’s concepts of System 1 and System 2 thinking. People with MCI and ADHD tend to operate primarily in System 1. Availability heuristics is perhaps the most challenging because people with MCI may rely heavily on easily recalled information which can lead to suboptimal judgment and decision.
Kahneman’s structured framework allows for easy development of an AI based application. AI assistants, based on the framework can be deployed to help people with the MCI and ADHD to make optimal decisions. In some cases, this provides for significantly better outcomes compared to our brains.
The book does a great job of helping us understand how we think and improve our decision-making skills. For people struggling with mental challenges, particularly those diagnosed with MCI and ADHD, this could be very useful.
[1] Michael Lewis, The Undoing Project: A Friendship That Changed Our Minds, W.W. Norton, 2016
[2] Alzheimer’s association, Mild Cognitive Impairment (MCI), https://www.alz.org/alzheimers-dementia/what-is-dementia/related_conditions/mild-cognitive-impairment
[3] National institute of Mental health, Attention-Deficit/Hyperactivity Disorder (ADHD),
[4] ADHD Statistics And Facts In 2025, Forbes Health (August 2023)
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