Three Quotes From Daniel Kahneman

All from *Thinking Fast and Slow*, these are on loss aversion, perhaps one of the most powerful forces in the universe:

If Tiger Woods had managed to putt as well for birdies as he did for par, his average tournament score would have improved by by one stroke and his earnings by almost $1m per season.

This made me think of the fiscal cliff debate:

Negotiations over a shrinking pie are especially difficult because they require an allocation of losses. People tend to be much more easygoing when they bargain over an expanding pie.

This made me think of entitlement reform generally, which includes things like subsidies for farmers or any other entrenched interest group:

As initially conceived, plans for reform almost always produce many winners and some losers while achieving an overall improvement. If the affected parties have any political influence, however, potential losers will be more active and determined than political winners, the outcome will be biased in their favor and inevitably more expensive and less effective than initially planned.

More quotes and thoughts to follow in this, perhaps. It’s a truly amazing book. I pair it with *Guns, Germs and Steel* and say that anyone who wants to consider him/herself educated should read and think about both. Carefully.

I can’t really think of any others on that list for me.

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