The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2002
Born: 5 March 1934, Tel Aviv, British Mandate of Palestine (now Israel)
Affiliation at the time of the award: Princeton University, Princeton, NJ, USA
Prize motivation: “for having integrated insights from psychological research into economic science, especially concerning human judgment and decision-making under uncertainty”
Prize share: 1/2
Daniel Kahneman was born in Tel Aviv, Israel, while his mother was visiting her extended family. The family’s regular domicile was in Paris, France. After his father’s death in 1944, he moved with his mother and sister to Palestine. He studied psychology at Hebrew University and the University of California, earning his Ph.D. in 1961. Kahneman has been married twice and has two children.
Daniel Kahneman began his prize-awarded research in the late 1960s. In order to increase understanding of how people make economic decisions, he drew on cognitive psychology in relation to the mental process used in forming judgements and making choices. His research on decision-making under uncertainty resulted in the formulation of a new branch of economics, prospect theory.