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Risto_Saarelma comments on Stock phrases - Less Wrong Discussion
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It's not quite arbitrary. 1 < 2, and system 1 is more fundamental than system 2. Animals have a system 1 but no system 2.
Still, agree that the names are bad. You shouldn't need to think about the rule to tell them apart.
They roughly correspond to subconscious and conscious, not sure why Kahneman felt he needed separate connotation-free names.