Tel Aviv, Israel – Renowned Israeli-American psychologist and Nobel Prize laureate Daniel Kahneman passed away on March 27 at the age of 90, as confirmed by his stepdaughter, Deborah Treisman. Kahneman’s groundbreaking research challenged the traditional economic theory of “homo economicus,” which assumed people always acted rationally in their self-interest. Instead, Kahneman revealed that individuals often rely on mental shortcuts that lead to flawed decision-making.
A faculty member at Princeton University, Kahneman was honored with the Nobel Memorial Prize in Economic Sciences in 2002 for his work integrating psychological principles into economic theory, particularly in the realm of human judgment and decision-making under uncertainty. Collaborating closely with psychologist Amos Tversky, the duo revolutionized the field of behavioral economics, impacting diverse areas such as sports, public policy, and medical diagnosis.
Kahneman’s bestselling book, “Thinking, Fast and Slow,” outlined the distinction between two modes of thinking: System 1, characterized by quick, intuitive responses, and System 2, which involves slower, analytical reasoning to correct errors. Their research exposed various cognitive biases prevalent in decision-making, such as the framing effect and the conjunction fallacy.
Beyond academia, Kahneman’s work influenced practical applications like the concept of “nudging” by economist Richard Thaler and legal scholar Cass Sunstein to guide intelligent decision-making while minimizing external influence. His insights also extended to the intricacies of perceived well-being, highlighting the significant role of peak moments and endings in shaping one’s memories.
Born in Tel Aviv in 1934, Kahneman’s early life was marked by the tumult of World War II, as he and his family navigated the perils of Nazi-occupied France before finding refuge in Israel. His journey into psychology began at Hebrew University, where he later conducted character assessment tests for military recruits before pursuing further studies in the United States.
Despite his exceptional contributions to the field, Kahneman’s personal life bore witness to challenges, including the loss of close collaborators and family members. Through it all, his enduring impact on the integration of psychology and economics continues to shape our understanding of decision-making processes in diverse contexts.
In recognition of his groundbreaking work, Kahneman was awarded the Presidential Medal of Freedom in 2013 by President Barack Obama. His legacy lives on not only through his acclaimed research but also in the lasting influence he has left on the fields of psychology, economics, and decision science.