Episode 1: 💡 System 1 & System 2 Thinking (and Intros!)
Hi all! Welcome to the first episode ever of Product Happy Hour! Join us as we introduce ourselves, the pod, and talk about System 1 & System 2 thinking from Thinking, Fast and Slow by Daniel Kahneman.
You can grab the book here!
The behavior psychologist Ajay mentioned is Susan Weinschenk, Ph.D. She has an amazing book on this and other subjects we highly recommend, 100 Things Every Designer Needs to Know About People.
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✍🏾 Show Notes
3:07 Our backgrounds
5:51 About the book & the author
Bias & Heuristics
9:03 System 1 vs System 2 thinking - how it can apply to your product
15:21 The Law of Small Numbers - how it can get you into trouble
21:03 Anchoring can impact user decision making, like strike through pricing
24:43 Availability - probability of events
27:32 PMs & Users use Substitution to shortcut thinking
33:16 Optimism and Loss Aversion - FOMO and pre-mortem
38:47 Overconfidence and how to avoid this bias
45:49 The different ways users make choices - How the Endowment Effect creates Loss Aversion, the likelihood of bad and rare events
What you can do about it
52:10 Strategies on how PMs can combat these biases in their own thinking
56:01 How to build solid products that acknowledge these biases and the fact that users are normally in system 1 thinking