A good article from the Economist about Daniel Kahneman who died on March,27th. It walks you through the main ideas and theories that were presented by this great academic, being the Prospect Theory one of his great contribution! Happy readings! - the 3rd Note on a Tribute Notes Series to Daniel Kahneman “…people’s well-being responds to changes in wealth, more than levels. The changes are judged relative to a neutral reference point. That point is not always obvious and can be recast: a bonus can disappoint if it is smaller than expected. In pursuit of gains, people are risk averse. They will take a sure win of $450 over a 50% chance of winning $1,000. But people gamble to avoid losses, which loom larger than gains of an equivalent size….” Daniel Kahneman was a master of teasing questionshttps://www.economist.com/finance-and-economics/2024/04/04/daniel-kahneman-was-a-master-of-teasing-questions from The Economist
- Pedro
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