In the News
In Memoriam - Daniel Kahneman - A Founding Father of Behavioural Economics

27th March 2024
Daniel Kahneman, the Israeli-American Nobel-Prize winning psychologist and economist, has passed away at the age of 90. His work has transformed our understanding of human behaviour and, from a personal perspective, his research infused and invigorated my own teaching for the best part of two decades. How exciting it has been to see so many thousands of Economics students engaging in behavioural economics and making the subject seem more relevant to them. In this blog, I am curating some responses to Daniel Kahneman's passing and to some useful resources. May he rest in peace.
So sad to hear of the death of the great Danny Kahneman. I've had the privilege of interviewing many of the greats in social science (Becker, Schelling, Thaler, Levitt, Duflo and others) but Kahneman is the one who took up residence in my subconscious...
— Tim Harford (@TimHarford) March 27, 2024
My (earlier) Conversation with the great Daniel Kahneman: https://t.co/Yy0CiZTWrv, RIP
— tylercowen (@tylercowen) March 27, 2024
Hard to find words for the loss of Danny Kahneman. He had the most original mind I have ever known, & also the deepest. He could connect with others - truly, madly, deeply. Knowing him was a privilege and a joy, & the best imaginable roller coaster ride. https://t.co/ZwpR6mieRy
— Cass Sunstein (@CassSunstein) March 27, 2024
Wednesday wisdom from Daniel Kahneman (1934-2024): pic.twitter.com/ulm4nVkr5i
— Daniel Pink (@DanielPink) March 27, 2024
Daniel Kahneman, Nobel laureate who upended economics, dies at 90 https://t.co/cqYmhv4MN9
— Dan Ariely (@danariely) March 27, 2024
The greatest psychologist in the world died today. He was also the greatest gentleman--gracious and kind, quick to apologize, loathe to take credit. The world will never forget Danny Kahneman: https://t.co/KaaoSjv93Y https://t.co/CbpxrixRcg
— Angela Duckworth (@angeladuckw) March 27, 2024
Remembering Danny Kahneman: Reflections from David Halpern https://t.co/2x6wWpsZDg
— The Behavioural Insights Team (@B_I_Team) March 28, 2024
RIP Daniel Kahneman. A few years ago I asked Danny if he thought bounded rationality was changing over time with the increasing amount of information and products available in the economy. His response was terrific. A short recording of that conversation: https://t.co/ZVcP9efoAg
— Jon Hartley (@Jon_Hartley_) March 27, 2024
Here are some of his key contributions:
Kahneman’s acclaimed work cast doubt on the rationality of decision-making and was instrumental in the rise of behavioural economics
- Prospect Theory: Developed in collaboration with Amos Tversky, prospect theory explains how people make decisions under uncertainty. It describes how individuals weigh potential gains and losses, and how they evaluate risky choices. Kahneman and Tversky found that people tend to be risk-averse when facing potential gains but risk-seeking when facing potential losses.
- Heuristics and biases: Kahneman and Tversky also identified various heuristics (mental shortcuts) and cognitive biases that influence decision-making, such as anchoring, availability, and representativeness. These concepts have been widely applied in economics and other social sciences.
- Framing effects: Kahneman demonstrated how the way choices are presented (or "framed") can significantly affect people's decisions, highlighting the importance of context in decision-making.
- Loss aversion: Kahneman's research showed that people tend to feel the pain of losses more strongly than the pleasure of gains, a phenomenon known as loss aversion. This insight has had a profound impact on economic theory and decision-making in various domains.
- The dual-process model of cognition: Kahneman proposed that human cognition involves two systems: System 1, which is fast, intuitive, and emotional, and System 2, which is slower, more deliberate, and logical. This model has been influential in understanding human decision-making processes.
Kahneman's groundbreaking research earned him numerous accolades, including the Nobel Memorial Prize in Economic Sciences in 2002. His work shaped our understanding of decision-making, cognitive biases, and the interplay between psychology and economics.
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