Study Notes

Dual System Theory (Behavioural Economics)

Level:
A-Level
Board:
AQA, Edexcel, OCR, IB, Eduqas, WJEC

Last updated 21 Mar 2021

This term stems from the Nobel-prize winning work of Daniel Kahneman, who is best known for his work Thinking, Fast and Slow.

Dual System Theory

System 1 thinking is fast, sub-conscious and automatic.

System 2 thinking is slow, controlled and conscious. We tend to use System 2 thinking when the decision is really important, is highly personal to us and when our decision may have a large impact on other people.

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