“There's a very good reason for why economics developed the way it did, and that is that in many situations, the assumption that people will exploit the opportunities available to them is very plausible, and it simplifies the analysis of how markets will behave.”

Israeli-American psychologist

Daniel Kahneman was an Israeli-American psychologist best known for his work on judgment and decision-making, and for his role in behavioral economics. He was awarded the 2002 Nobel Memorial Prize in Economic Sciences with Vernon L. Smith. His research challenged the idea that people act as fully rational decision-makers, a core assumption in modern economic theory. He became known as the “grandfather of behavioral economics,” and his work is closely associated with how people think, choose, and judge under uncertainty.