The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Kahneman, Daniel (Born 1934)

  • Matthew Rabin
Reference work entry


A prominent figure in the new hedonic psychology, Daniel Kahneman has been influential in the emergence of behavioural economics. His research programme on heuristics and judgemental biases points to a range of important ways that economics has traditionally misunderstood human behaviour, and identifies how some common economic assumptions have been misleading. Especially in light of potential flaws in the way people manage their well-being, Kahneman and his colleagues have launched research that may help move economics towards a more realistic approach both to predicting behaviour and to welfare analysis.


Behavioural economics Biases Cognition Conjunction effect Conjunction rule Diminishing sensitivity Endowment effect Fairness Framing effect Happiness Hedonic psychology Heuristics Judgement Kahneman, D Law of small numbers Loss aversion Probability Representativeness heuristic Risk aversion Thaler, R Tversky, A Utility theory Well-being 

JEL Classification

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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Matthew Rabin
    • 1
  1. 1.