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Allianz Global Investors

Emotional and socially influenced biases

Aug 22, 2025

It has long been known that humans can make decisions in two ways, a rational, thoughtful way, and an instinctive, rash way. Goethe’s Faust called it the “two souls” that dwelt in his heart. More recently, the behavioural economist Daniel Kahneman called it the “two systems of thought” in his book Thinking, Fast and Slow. In lay parlance, people often speak about the two angels sitting on their shoulders and whispering into their ears, a cautious, “rational angel”, and a bold, “instinctive angel”.

 

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