Nobel Prize economics winner Prof. Daniel Kahneman has died aged 90.
Prof. Kahneman was born in Tel Aviv in 1934 and graduated in psychology and mathematics from the Hebrew University of Jerusalem. He received his doctorate in psychology from the University of California, Berkeley. He taught at the Hebrew University from 1961 to 1978 where he became a professor. He was an emeritus professor at Princeton University.
He was awarded the Nobel Prize in Economics in 2002 for his work with Prof. Amos Tversky, who had died in 1996. He became the second psychologist to win the Nobel Prize for Economics for his work in decision making in times of uncertainty. The Prospect Theory that he developed with Tversky challenged the rational model in economics, by showing that aversion of loss motivates us more than love of gain.
In Kahneman's words, "The reaction to losses is consistently stronger than the reaction to equivalent gains." In 2007, in an interview with "Money" magazine, Kahneman said: "Economists think that people are rational. They think about what people should do. Psychologists examine what they really do."
Published by Globes, Israel business news - en.globes.co.il - on March 27, 2024.
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