There's a very good reason for why economics developed the way it did, and that is that in many situations, the assumption that people will exploit the opportunities available to them is very plausible, and it simplifies the analysis of how markets will behave. Daniel Kahneman analysisassumptionbehave share on social
There's a tendency to look at investments in isolation. Investors focus on the risk of individual securities. Daniel Kahneman focusindividualinvestment Change image and share on social
We know that the French are very different from the Americans in their satisfaction with life. They're much less satisfied. Americans are pretty high up there, while the French are quite low - the world champions in life satisfaction are actually the Danes. Daniel Kahneman americanchampiondane share on social
People who know math understand what other mortals understand, but other mortals do not understand them. This asymmetry gives them a presumption of superior ability. Daniel Kahneman abilityasymmetrymath Change image and share on social
Organizations may be better able to tame optimism than individuals are. Daniel Kahneman individualoptimismorganization Change image and share on social
We're beautiful devices. The devices work well; we're all experts in what we do. But when the mechanism fails, those failures can tell you a lot about how the mind works. Daniel Kahneman beautifuldeviceexpert Change image and share on social
All of us roughly know what memory is. I mean, memory is sort of the storage of the past. It's the storage of our personal experiences. It's a very big deal. Daniel Kahneman bigdealexperience Change image and share on social
We think, each of us, that we're much more rational than we are. And we think that we make our decisions because we have good reasons to make them. Even when it's the other way around. We believe in the reasons, because we've already made the decision. Daniel Kahneman decisiongoodhave share on social
If owning stocks is a long-term project for you, following their changes constantly is a very, very bad idea. It's the worst possible thing you can do, because people are so sensitive to short-term losses. If you count your money every day, you'll be miserable. Daniel Kahneman badconstantlycount share on social
We don't see very far in the future, we are very focused on one idea at a time, one problem at a time, and all these are incompatible with rationality as economic theory assumes it. Daniel Kahneman assumeeconomicfocus Change image and share on social
