Thinking, Fast and Slow by Daniel Kahneman

This book starts out with a simple premise: Your cognition consists of a fast system (System 1) and a slow system (System 2). System 1 is fully automatic, it scans the environment and calls onto System 2 if it detects anything notable. It’s also full of biases and highly confident. System 2 thinking needs effort to execute, and humans are lazy.

That’s the first part of the book. In the following chapters, Kahneman introduces various biases that influence our decision making. He also introduces the prospect theory he developed with a colleague that, in part, got him the Nobel Memorial Prize in Economics in 2002.

This book is 400 pages, but it feels like more, due to the fact that it can only be fully understood if read slowly. I would 100 % recommend this to people which are interested in psychology and/or economics (ideally both).