Daniel Kahneman shared the 2002 Nobel Memorial Prize in Economic Sciences for integrating insights from psychological research into economic science.
Kahneman received the prize for work conducted largely with Amos Tversky, although Tversky had died before the award and Nobel Prizes are not awarded posthumously. Their research on judgment and decision-making showed that people often use mental shortcuts and can make systematic errors.
Their prospect theory explained how people evaluate gains and losses differently and helped challenge the assumption that economic decision-makers are always fully rational. Kahneman later popularized related ideas for a broad audience in Thinking, Fast and Slow.
A frequent mistake is to say Tversky shared the Nobel. He was central to the research but was not a laureate because he had died in 1996. Kahneman was the sole 2002 economics laureate.