Daniel Kahneman

Daniel Kahneman is a psychologist whose work has profoundly influenced economics by exploring how people make decisions. He introduced concepts like "bounded rationality" and "cognitive biases," showing that humans often rely on heuristics—mental shortcuts—that can lead to irrational choices. His acclaimed book, "Thinking, Fast and Slow," contrasts two modes of thought: the fast, intuitive System 1 and the slow, deliberate System 2. Kahneman's insights challenge traditional economic assumptions of rationality, highlighting that emotions and cognitive limitations shape our economic behavior and decisions in significant ways. His work has established the field of behavioral economics.