Daniel Kahneman (Behavioral Economics)

Daniel Kahneman is a psychologist renowned for his work in behavioral economics, which studies how people make economic decisions. He showed that individuals often rely on mental shortcuts (heuristics) and are influenced by biases, leading to choices that deviate from rationality. His research reveals that emotions, perceptions, and cognitive shortcuts significantly impact decision-making, often causing systematic errors. Kahneman’s insights help explain phenomena like overconfidence, loss aversion, and the framing effect, highlighting that human behavior in economic contexts is shaped by psychological factors as much as by logical calculations. His work has transformed understanding of human decision processes in economics and policy.