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The renowned Princeton professor explains the two systems that control how we think. One is intuitive and emotional, the other is slower and more logical. Therefore we can only understand risk, balance fear and optimism, and accept the gap between memory and experience by recognising how the two systems combine to shape our judgments. Kahneman points out where we really should trust our intuition, and where we would benefit from slow thinking.
Widely regarded as the world's most influential living psychologist, Daniel Kahneman won the Nobel Prize in Economics for his pioneering work in behavioural economics exploring the irrational ways people make decisions about risk.
Daniel’s work in cognitive psychology started specialising in visual perception in cognitive psychology. Whilst lecturing in this area he started work with Amos Tversky. The two academics went on to publish a series of papers studying judgment, risk and decision-making culminating in their ‘prospect theory’. Prospect theory describes the way people chose between risks dependant more on the potential gains (or losses) rather than the likelihood of success. It was for his work on prospect theory that Daniel was awarded the Nobel Prize.
Kahneman and Tversky have been cited as founding fathers of behavioural economics: the application of psychological theory and analysis to human behaviour around economics and markets. As well as looking at behaviour related to risk and outcome, he has also been a pioneer in research related to more abstract areas such as how individuals and groups experience positive and negative feelings. Daniel’s book Thinking, Fast and Slow, is one of the most widely praised and popular titles in business psychology of recent times.
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