Kahneman's book was praised a lot, but I found it more questionable than useful.
It has its good parts, like elaborating on System 1 and System 2, but my favorite concept was regression to the mean. It might by obvious in some cases, but the book made me realize that it applies nearly everywhere.
The bad parts include priming (e.g. the Florida effect) that like others mentioned could not be replicated. He sometimes praises himself for even trivial observations. But my biggest grime that he dismisses Bernoulli's hypothesis in favor of his loss aversion (I still think humans apply a mix of both), while also framing loss aversion as irrational. That is, humans should always only maximize the expected outcome (in terms of money). The reasoning is that during life we will encounter a continuous stream of decisions and maximizing the expected value in each decision will (according to the law of large numbers) maximize the overall income.
It's not (always) irrational. Imagine you have a million dollars. Someone offers you a gamble of a fair coin flip between gaining 2 million dollars and paying one million dollars. With a million USD on your bank account you had a quite comfortable life, and it could get more comfortable with 3 million on your account. But if you lose you are ruined. According to Kahnemann you should take that gamble. Also consider that before the invention of money, those decisions were typically whether to hunt that mammoth or something less aggressive.
The German version of "Who Wants to Be a Millionaire" has a particularity: Your win jumps from € 125.000 to € 500.000 at the 14th question (A consequence of conversion from Deutsche Mark to Euros). Assume you have no idea what the answer is. According to Kahneman you should always pick one at random. If you pick right you get € 500.000. If you pick wrong you will still win € 32.000 or € 500 if you took the 4th lifeline like most contestants do. This makes an expected win of 3/4500 + 1/4500.000 = € 125.375, compared to € 125.000 when you don't answer. Would you do it?
Some questions along these lines are not so easy. For example, iterated versions that take bankruptcy into account (game over) by using geometric mean instead of arithmetic mean; but that might not always be the optimal strategy [https://www.pnas.org/doi/10.1073/pnas.68.10.2493].
It has its good parts, like elaborating on System 1 and System 2, but my favorite concept was regression to the mean. It might by obvious in some cases, but the book made me realize that it applies nearly everywhere.
The bad parts include priming (e.g. the Florida effect) that like others mentioned could not be replicated. He sometimes praises himself for even trivial observations. But my biggest grime that he dismisses Bernoulli's hypothesis in favor of his loss aversion (I still think humans apply a mix of both), while also framing loss aversion as irrational. That is, humans should always only maximize the expected outcome (in terms of money). The reasoning is that during life we will encounter a continuous stream of decisions and maximizing the expected value in each decision will (according to the law of large numbers) maximize the overall income.
It's not (always) irrational. Imagine you have a million dollars. Someone offers you a gamble of a fair coin flip between gaining 2 million dollars and paying one million dollars. With a million USD on your bank account you had a quite comfortable life, and it could get more comfortable with 3 million on your account. But if you lose you are ruined. According to Kahnemann you should take that gamble. Also consider that before the invention of money, those decisions were typically whether to hunt that mammoth or something less aggressive.
The German version of "Who Wants to Be a Millionaire" has a particularity: Your win jumps from € 125.000 to € 500.000 at the 14th question (A consequence of conversion from Deutsche Mark to Euros). Assume you have no idea what the answer is. According to Kahneman you should always pick one at random. If you pick right you get € 500.000. If you pick wrong you will still win € 32.000 or € 500 if you took the 4th lifeline like most contestants do. This makes an expected win of 3/4500 + 1/4500.000 = € 125.375, compared to € 125.000 when you don't answer. Would you do it?