From Morningstar: 2024-04-02 07:21:00

Daniel Kahneman, who recently passed away at 90, was an unlikely Nobel laureate in economics. His training in psychology led to impactful research on ratings scales like the semantic differential, revolutionizing how researchers assess opinions. Kahneman’s self-doubt and pessimism shaped his success, challenging conventional thinking with pioneering partner Amos Tversky.

Their groundbreaking papers, spanning from 1971 to 1974, exposed common judgment errors people make. Initially published in psychology journals, their work later influenced economics, culminating in the creation of behavioral economics. Kahneman and Tversky’s unique perspectives and insights on decision-making reshaped economic and psychological paradigms.

Their research introduced concepts like loss aversion, fairness, and the disposition effect, transforming various disciplines, including management education. Kahneman’s insistence on embracing mistakes and his skepticism toward conventional wisdom nurtured a rich legacy of insightful research and practical lessons on decision-making.

Kahneman’s famous quotes emphasize the importance of self-reflection, the unpredictability of the world, and the limitations of confidence and over-familiarity. His work challenges traditional beliefs, encouraging a deeper understanding of human behavior and decision-making.



Read more at Morningstar: Daniel Kahneman, 1934-2024: The Unlikely Economist