PHIL 152 Chapter Notes - Chapter 1, 25-27: Utility, Chapter 27, Risk Aversion
Document Summary
System 1: automatic and quick w/ little or no e ort and no sense of voluntary control. Plot synopsis: when system 1 runs into di culty, it calls on system 2 for support system 2 is mobilized when detects an error about to be made. Con ict: b/w automatic reaction and an intention to control. Illusions: cognitive illusions: illusions of thought sympathy we feel is not under out control (system 1) System 1 operates automatically and cannot be turned o at will, errors of intuitive thought are di cult to prevent; biases are hard to avoid. System 2 is too slow and ine cient to replace system 1. The agent of economic theory is rational, sel sh, and his tastes do not change ( econs ) in psychology, the opposite is true ( human )
