PART 1

Question 1) Describe the fourfold pattern

Question 2)Give an example from current news about the undue influence of rare events.

Question 3)From reading about risk policies in Kahenman's book, how do you now view whether buying extended warranties is a good or bad idea? Explain in a few sentences

Question 4)Kahneman wrote that "people expect to have stronger emotional reactions (including regret) to an outcome that is produced by action than to the same outcome when it is produced by inaction." What are the consequences of this for decision-making?

Question 5) In a few sentences, explain what Kahneman means by framing. Give an example.

PART 2

• What did you get out of reading this book? How did it change your views about yourself?
• Kahneman talks about rationality and how humans are not rational. Do you agree with this main idea of the book? How do you think about rationality?
• Do you think rationality is a cultural construct? Can you think of some specific examples that support the view that other cultures approach rational decision-making differently?
• What do you see as the consequences of Kahneman's main thesis to capitalism? How do they relate to the "invisible hand" of the market?