Listen to a Podcast About Behavioral Economics

Discover why humans make irrational economic decisions. Explore prospect theory, cognitive biases, nudge theory, and how psychology intersects with economics.

Daniel Kahneman and Amos Tversky's 1979 prospect theory paper demonstrated that people feel losses roughly twice as intensely as equivalent gains, overturning classical economics' assumption of rational actors. Kahneman won the 2002 Nobel Prize in Economics — the first psychologist to do so — and Richard Thaler's "nudge" framework, developed with Cass Sunstein, was adopted by the UK's Behavioural Insights Team in 2010, influencing government policy in over 200 countries.

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