Kahneman and Tversky’s cognitive psychology reshaped mainstream economics
Evidence
In his book Misbehaving: The Making of a Behavioral Economist, Richard Thaler talks about his earliest days of collaboration with Daniel Kahneman and Amos Tversky, who were already giants in the field of cognitive psychology. In their 1974 paper “Judgment Under Uncertainty,” Kahneman and Tversky took the academic world by storm, having proposed three straightforward cognitive biases of human decision making. Over the next few years, their further work on choice, risk, and uncertainty revealed even more anomalies in decision making, which had such a powerful effect on other academic disciplines that in 2002 Kahneman won the Nobel Prize in Economics. (Tversky had already passed away in 1996 and was thus ineligible.) — Lee McIntyre, Post-Truth, 97
Categorization
- XREF: connects to: Behavioral economics’ rise traced to Kahneman and Tversky, not earlier German work — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 345; Economists’ persistence in error needs institutional explanation, not just psychology — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 490; Behavioral economics repackaged government intervention during the neoliberal era — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 346
Broader Connections
- Behavioral economics’ rise traced to Kahneman and Tversky, not earlier German work
#corroborates(0.85) — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 345 - Economists’ persistence in error needs institutional explanation, not just psychology
#qualifies(0.72) — Philip Mirowski, Never Let a Serious Crisis Go to Waste, 490 - Behavioral economics repackaged government intervention during the neoliberal era
#expands(0.70) — Dieter Plehwe, Quinn Slobodian & Philip Mirowski (eds.), Nine Lives of Neoliberalism, 346