An Intellectual Love Story: Daniel Kahneman and Amos Tversky
They were psychologists who changed economics. Their work opened a new field of study called Behavioral Economics. Their collaboration challenged the assumptions of the day. This is a story of that collaboration and their friendship.
In the 1980’s, they changed the way people thought about how people made decisions. The prevailing thought at the time was that people made decisions based on what they can get out of the choices (value/utility) available. The two friends stepped in and discovered that people decide differently when choices are presented in terms of what they stand to gain or lose, even if what they are expected to get out of the choices are the same.
As Michael Lewis re-tells it, the two had their own wives and families, but their friendship had its own arc. They both served in the Israeli Defense Forces, and they were both lecturers of Psychology. After meeting up, they collaborated and produced articles after articles in the field of judgment and decision-making. Their biggest contribution is called the “Prospect Theory”. Like a couple, they had their fights and conflicts. As one writer puts it, they were “Intellectual Soul Mates”.
Why read The Undoing Project?
You get an insight into the life of Daniel Kahneman and Amos Tversky. You learn of some of the biases that people have when it comes to judgment and decision-making.
How can you use this information?
Keep your friends close and check up on them. It helps to have your thinking guided.
See more:
Like, Follow, and Get notified in advance through social media sites:
IG – https://www.instagram.com/booknewb/
FB – https://www.facebook.com/booknewb/
TW – https://twitter.com/booknewb
First Published: March 23, 2019 12:46 pm
book newb 
Leave a comment