From Skin Care to Transportation: The Fourfold Pattern and Everyday Decisions
I believe that one of the most exciting aspects of reading non-fiction books, especially those that propose their own theories, is the opportunity to compare those theories with reality. One such concept is The Fourfold Pattern from the book Thinking, Fast and Slow by Kahneman (2011). I won't discuss the concept in detail in this article, but I will describe a real example that I experienced myself after reading about it. Source: Kahneman (2011) In short, The Fourfold Pattern maps human attitudes towards risk in different scenarios. There are two probabilities (high and low) and two outcomes (gains and losses) that are mapped. Let's focus on the lower quadranta The lower left quadrant describes a situation where there is a small chance of obtaining a large gain, such as a 5% chance of winning a $10,000 prize. This situation creates an expectation of a large gain, triggering a risk-seeking attitude. This is evident in the behavior of those who buy lottery tickets, who know that...
