Daniel Kahneman won the 2002 Nobel Memorial Prize in Economic Sciences for research on judgment and decision-making under uncertainty.
Kahneman shared the prize with economist Vernon L. Smith. The committee honored Kahneman for integrating insights from psychology into economics, especially research showing that people often use mental shortcuts and do not always make the fully rational choices assumed by traditional models.
His work with Amos Tversky produced prospect theory, which describes how people evaluate gains and losses differently. Their research also examined heuristics and biases, including predictable errors in probability judgments. Tversky died in 1996 and therefore was not eligible to share the Nobel Prize.
Kahneman was born in Tel Aviv in 1934 and worked for many years in Israel and the United States. His 2011 book, Thinking, Fast and Slow, helped bring behavioral economics to a broad readership.