Economics

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Decision making
Introduction
Every individual tends to make a decision depending on how the situation at hand is. Some predictably change their behaviors when faced with a situation. As indicated under nudge, the individual doesn’t forbid any option or even change his or her economic incentives. In this context, the purpose of Gladwell’s blink moments, nudge moment and system 1 and system 2 helps in explaining how an individual makes a decision depending on the situation. In all the cases, one’s judgment is based on the condition that lies in front of him or her.
System 1 refers to the system of the mind that operates faster and automatically with no or little effort without the sense of deliberate control.System 2 involves the attention being allocated to the mental activities which demand it. The events include complex computations with system 2 operating in association with the individual’s experience of choice, concentration, and agency (Kahneman & Tversky, 21). According to Kahneman and Tversky, system 2 involves how individuals think about themselves in making choices, how they decide on what they think about and do and the beliefs they have. System 1 mainly generates the surprisingly intricate patterns of individual’s ideas. When system 1 develops such habits of ideas, system 2 constructs the ideas in an orderly series of steps (Kahneman & Tversky, 21). An example of system 1 involves an individual reacting to a threat before even recognizing it.

An example of system 2 includes when an individual slows down when angry and then reasons out before making a decision.
Nudge moments are based on the nudge theory. It means an aspect of the choice architecture which predictably alters one’s behaviors without avoiding any option or even changing one’s economic incentives (Thaler & Sunstein, 7). An example of a nudge moment is the automatic enrolment where employees are automatically placed in a firm’s pension scheme. By doing this, their contributions are deducted from their pay packet unless they request to be exempted. Through this, the employees make saving to be a default choice thus will even work harder to push up their savings rates. The nudge moment mainly encourages an individual to make a decision that is based on his or her broad self-interest (Thaler & Sunstein, 37).
The similarity between system 1/ system 2 and nudge moments includes the fact that in both, an individual has the choice to make a decision depending on the demand of the situation. The difference, however, is that nudge moments involve default choice while system 2 entails one making a decision which is a subject to the experience of choice or concentration.
Malcolm Gladwell’s blink moments means that the moment an individual thinks; a decision is already made. It involves the feeling or the thought that one gets before consciously thinking about the situation (Gladwell, 3). An individual is convinced that a decision he or she makes very quickly can just be as right as the decisions that he or she makes cautiously and deliberately. The blink moments allows one to determine when to trust and when not to believe his or her instincts. The danger of blink moment is that an individual can make a wrong decision based on his or her subconscious mind without using conscious mind. The choices can hurt an individual’s progress in any situation.
System 1/system 2, nudge moment and blink moment mainly entail how an individual makes a decision depending on how a situation is. In all the cases, there is need to pay much attention to the situation at hand to prevent making wrong choices which may affect one’s decisions and success. Nudge moment can lead to blink moment since an individual makes a decision based what is presented to him or her.
Work cited
Gladwell, Malcolm. Blink!: the power of the moment. New York: Paw Prints, 2014. Print.
Kahneman, Daniel, and Tversky, Amos Thinking, Fast and Slow. New York: Farrar, Straus and Giroux, 2015. Print.
Thaler, Richard H, and Sunstein, R. Cass. Nudge: Improving Decisions About Health, Wealth, and Happiness.New Haven & London: Yale University Press, 2010.Print.