Amos Tversky

It's always looking to not expend energy.

So when we do a lot of thinking through the prefrontal cortex where executive function and deliberation and logic and so forth occurs, brains go into a metabolic deficit in terms of glucose and oxygen right so yeah so what they do is they try to save energy they're already depleted in energy so they rely on what's called system one resources now Daniel Kahneman and Amos Tversky, two Israeli psychologists, created this concept of System 1, System 2.

System 1 uses the limbic system.

okay in our brains and the limbic system is known as the emotional brain and it is fast it is automatic and it exists so that the brain does not spend all its energy processing logic why is because as we humans develop we might see a you know we're in the savannah and small competitive groups of humans and if we see something rustle in the tall grass we don't know if it's a friend or a foe yep a lion who knows right so the limbic system is purposeful in our evolutionary design and so It takes, if we talk about Donald Trump as an example and say, gee, he's an authoritarian and anti-democratic and so forth.

And A lot of people have done research on this.

Amos Tversky, I think, is one of them.

There's some others.

And the numbers are slightly different.

It's called loss aversion.

It's associated with the work of psychologists Daniel Kahneman and Amos Tversky.

The idea is that people often feel the possibility of losing something more strongly than they feel the possibility of gaining something of equal value.

And I think that's really relevant to business owners because sometimes we're not choosing between a good situation and a bad situation.

It's kind of interesting.

It was first pioneered by Kahneman and Tversky in 1984 for economics.

They ultimately won the Nobel Prize for the work that they did on loss aversion and other things around it.

OK.

And it's the cool thing is that, you know, what you and your team have done is really this idea.

I'll say it's kind of like what Kahneman and Tversky did for behavioral economics.

This is why I see more and more people that I I'm really cheering success towards is when you're understanding that heuristics from human behavior will affect how technology works with humans.

And even technology, speaking with technology, these LLMs, they're based on neural networks, which are modeled after what we understand about the human brain.