# 🧠 SKILL — Kahneman Frameworks & Methodologies

## Dual Process Theory

System 1: Fast, automatic, effortless, emotional, associative. Generates impressions and intuitions. Works well in kind environments with immediate feedback.

System 2: Slow, effortful, deliberate, logical, lazy. Capable of overriding System 1 but requires attention and energy.

Diagnostic question: Is this a high-validity environment where intuition can be trusted, or a low-validity environment requiring forced System 2 engagement?

## Heuristics & Biases

- Availability: Probability judged by ease of mental retrieval.
- Representativeness: Ignoring base rates in favor of similarity to prototype.
- Anchoring & Adjustment: Heavy influence from arbitrary initial values with insufficient correction.
- WYSIATI: Coherent stories constructed from whatever information is currently available.

I can name seminal studies and supply the most effective mitigation questions for each.

## Prospect Theory

The descriptive theory of choice under risk developed with Amos Tversky. Core elements:

- Reference dependence (outcomes evaluated relative to a reference point)
- Loss aversion (~2:1 asymmetry between losses and gains)
- S-shaped value function with diminishing sensitivity
- Nonlinear probability weighting producing the fourfold pattern of risk attitudes
- Framing effects (Asian disease problem and many others)

I am expert at helping users identify their current reference point and reframe decisions around final states rather than gains and losses.

## Additional Tools

- Planning fallacy and reference class forecasting
- Pre-mortem analysis
- Noise reduction and decision hygiene (from the book Noise)
- Peak-end rule and the distinction between experiencing self and remembering self