How Behavioral Economics' System 1 and System 2 Align with Advaita Vedanta’s Manas, Buddhi, Chitta, and Ahamkara

In today's fast-paced world, understanding how we make decisions is critical, not just for individuals but also for businesses, leaders, and innovators. Behavioral Economics gives us valuable insights into human decision-making through the lens of System 1 and System 2 thinking. Similarly, Advaita Vedanta, an ancient Indian philosophical tradition, explores the mind’s workings through four components: Manas, Buddhi, Chitta, and Ahamkara.

Interestingly, despite the thousands of years and cultural differences separating these frameworks, they reveal a shared understanding of how the mind operates. Let’s explore how these two perspectives interlink and what they can teach us about decision-making, self-awareness, and mindfulness.

System 1 and Manas: The Fast, Automatic Mind

In Behavioral Economics, System 1 is described as the fast, intuitive, and automatic thinking that governs much of our everyday decision-making. It operates almost effortlessly, processing vast amounts of information—1 crore 20 lakh bits per second—with minimal energy. It relies on instincts, habits, and emotions, enabling us to make quick decisions, especially in familiar or routine situations.

Similarly, in Advaita Vedanta, the Manas is responsible for processing sensory inputs and generating emotional responses. Like System 1, the Manas reacts instantly to external stimuli, generating desires, fears, or doubts without deliberate thought. It is the part of the mind that handles immediate reactions to what we experience—much like how System 1 processes information quickly and emotionally.

Both Manas and System 1 are essential for handling everyday tasks, managing sensory information, and reacting to the world around us with speed and efficiency. They are energy-efficient, allowing us to function without taxing our cognitive resources.

System 2 and Buddhi: The Slow, Rational Mind

System 2, on the other hand, is the deliberate, rational thinking system in Behavioral Economics. Unlike System 1, it is slow, effortful, and requires conscious attention. While System 2 processes only 40 bits per second, it is essential for complex decision-making, critical thinking, and self-control.

In Advaita Vedanta, this role is played by the Buddhi, or the intellect. Buddhi is responsible for discrimination, reasoning, and thoughtful decision-making. It steps in when Manas (System 1) is inadequate for more complex situations, where deeper analysis and careful consideration are needed. Buddhi helps us discern between right and wrong, long-term and short-term consequences, and what is beneficial versus harmful.

Much like System 2, Buddhi is slower and more energy-intensive than Manas, but it is crucial for self-control and rational decision-making. It takes effort to engage the Buddhi (or System 2) because the body naturally defaults to the faster, more automatic Manas (System 1). However, when properly trained, Buddhi can take control in critical moments and guide us toward better, more thoughtful outcomes.

Chitta: The Memory Bank

The role of Chitta in Advaita Vedanta parallels the influence of memory and past experiences in both System 1 and System 2 thinking. Chitta acts as the repository of all past impressions, experiences, and tendencies, much like how our past experiences influence our automatic and deliberate decisions.

For instance, when System 1 reacts quickly to a situation, it is often drawing on memories and learned experiences stored in Chitta. Similarly, when System 2 steps in to make a deliberate decision, it is also influenced by the information stored in Chitta.

Chitta, while not directly involved in decision-making, is a critical background force that informs both Manas and Buddhi, shaping how we react to situations and what decisions we make.

Ahamkara: The Ego in the Decision-Making Process

Ahamkara in Advaita Vedanta refers to the ego or the sense of "I" and individuality. It is the self-identification that claims ownership of thoughts, actions, and decisions. In both System 1 and System 2, Ahamkara plays a role by making us feel that we are the ones thinking, deciding, or acting. It attaches personal identity to our thoughts and actions, often driving attachment and reinforcing patterns of behavior.

When we make quick decisions through System 1 (or Manas), Ahamkara takes ownership, reinforcing habits and emotional responses. Likewise, when we engage in deliberate reasoning through System 2 (or Buddhi), Ahamkara identifies with the more thoughtful, rational decisions.

However, in Advaita Vedanta, realizing that Ahamkara is not the true Self is essential for spiritual growth. By disidentifying with Ahamkara, one can transcend ego-driven decisions and recognize the pure consciousness (Atman) beyond the mind.

Why We Default to System 1 (Manas) Over System 2 (Buddhi)

Just as Behavioral Economics shows that the body tends to rely on System 1 more than System 2 due to its efficiency and low energy usage, the same is true in Advaita Vedanta regarding Manas and Buddhi. The Manas handles the bulk of decision-making because it operates quickly and with minimal effort. It’s responsible for routine tasks, emotional reactions, and instinctual decisions—all while conserving cognitive energy.

Engaging Buddhi (like System 2) requires conscious effort and significant energy, which is why we cannot always rely on rational, thoughtful decision-making. However, training the Buddhi through practices like self-inquiry, meditation, and discrimination (Viveka) can strengthen its ability to override the impulsive Manas when necessary.

Training the Mind: A Lesson from Both Perspectives

Both Behavioral Economics and Advaita Vedanta suggest that while our default mode of thinking may be fast and instinctual (System 1/Manas), it is possible to train the slower, more rational mind

A Shared Wisdom

So, what can we learn from all of this? Behavioral Economics and Advaita Vedanta may seem worlds apart, but they both show us something profound: our minds have two modes of operating—one that’s fast and automatic (Manas/System 1) and another that’s slower but more thoughtful (Buddhi/System 2). Both are necessary, but the real magic happens when we learn to balance them and use them wisely.

By understanding this connection, we can start paying more attention to how we think and make decisions. Whether you approach it from a modern psychological perspective or an ancient spiritual one, the goal is the same: to become more aware of how our minds work, and to use that awareness to live more mindfully and make better decisions.

Isn't it amazing how two different frameworks from vastly different times are saying the same thing about our minds? It’s a reminder that no matter how advanced our modern world gets, some truths about the human experience are universal.