Kahneman: Master of the imperfect mind Daniel Kahneman won a
Nobel for explaining why people habitually make the wrong moves
when investing or spending their money. Who better to tell you
how to do it right? (Money Magazine) -- It isn't often that a
psychologist helps explain personal finance, but Daniel Kahneman
isn't an ordinary psychologist. In 2002 he won a Nobel Prize in
economics for his research into how people confront uncertainty.
Raised in France and Israel and formerly a professor at the
Hebrew University of Jerusalem, UC-Berkeley and Princeton,
Kahneman has spent half a century studying how the human mind
works - or fails to. Just retired at age 73, Kahneman is now
writing a book about decision-making in collaboration with Money
Magazine's Jason Zweig. The two recently chatted on the record.
Q. Are people rational? A. Economists argue that people are
rational - that they use all available information to make
decisions and that those decisions are consistent over time.
Psychologists say that is tot