On issues big and small, people often don't make the best possible decisions for the long term. The authors argue that the root cause of this sub-optimal decision-making is that our behaviour is guided by two types of processes: System 1 thinking and System 2 thinking. Whereas System 1 tends to operate effortlessly and automatically, the operations of System 2 are slower, more effortful and deliberate. System 1 judgments are based on perceptions, intuitions and emotions, while System 2 judgments in-depth logical analysis and reasoning. Not surprisingly, on a day-to-day basis, System 1 guides much of our behaviour. They introduce The Hot-Cold Decision Triangle, a framework that can enable better choices by enabling us to avoid the power of visceral urges.

Whether your aim is to lose weight, save for retirement or quit smoking, most of us have a clear idea of the long-term goals that we would like to achieve for ourselves. Unfortunately, most of us also fail to implement the requisite course of action to produce these outcomes. Why don't we simply make the decisions necessary to make our goals a reality? The authors argue that Behavioral Economics can provide solutions to problems that predictably arise from individual behavior. Not only does it acknowledge that human behavior is often far from optimal, but it also identifies a variety of decision errors and biases that contribute to departures from optimality. The authors show that many of the same decision errors that produce self-destructive behavior in the first place can actually be used to people's individual and collective benefit.