Tversky & Kahneman

Tversky and Kahneman are psychologists known for their work on how people make decisions and perceive risks. They discovered that our choices are often influenced by cognitive biases, such as favoring immediate gains over future benefits or being influenced by how options are presented. For example, people might fear a 10% chance of loss more than they value a certain small gain, even if the expected value is better. Their research helps explain common decision-making errors and highlights that our judgments are often shaped by heuristics—mental shortcuts—rather than strict logic or mathematics.