![]() ![]() You now see the impact their work has had on public policy and how corporations make decisions. Behavioral economics which is simply the blending of economics with how humans actually make decisions did not exist in its popularity as it does today. The ideas the two psychologists developed together are quite interesting and I recommend reading Thinking, Fast and Slow if you are really interested in the ideas of our unseen biases or illusions to lead us to believe we always make rational decisions. ![]() These biases and heuristics will lead us to contradict ourselves without us realizing it. ![]() Heuristic means a mental rule of thumb you use every day often times unconsciously to make decisions. Their work on identifying human bias and heuristics that proved the economic theory wrong about humans being rational actors. They pioneered a lot of the ideas that we now understand to be true in our society. The backstory around how these two great minds developed independently and the story of how they connected to create one of the greatest partnerships in modern academia. I’ve just finished Michael Lewis’s The Undoing Project which follows two Israeli psychologists Daniel Kahneman and Amos Tversky whose work around human decision making, judgment, and bias have influenced the field of decision making and behavioral economics. ![]()
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