Until Tversky and Kahneman, the idea that rational people inevitably would act in a way that maximizes their income was a bedrock belief of economists: Raise taxes on .
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Daniel Kahneman (Danny to his friends) died last month at the age of 90. He was a psychologist and researcher who applied psychology to economic analysis with his close friend
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For those who invest, this work is particularly relevant. The financial markets are filled with uncertainty, risk and emotional stress—conditions that make our cognitive biases stronger. Understanding these biases is the first step towards avoiding their bad effects.