LESSON 1 · Your Irrational Brain: Behavioral Economics
Two Mental Systems
Daniel Kahneman identified two ways the mind works. System 1 is fast, automatic, and intuitive — it recognizes faces, reads emotions, and reacts to danger instantly. System 2 is slow and analytical — it solves math problems and plans complex tasks.
The catch is that System 1 runs most decisions, even the important ones we think we make carefully. We form a snap judgment first, then use System 2 to justify what System 1 already decided. Your gut feeling arrives first, and your logical brain builds the reasons afterward.