It doesn't happen very often that when one finishes reading a book, one could instantly recognize it as a masterpiece and a classic. Nor is it usuallyIt doesn't happen very often that when one finishes reading a book, one could instantly recognize it as a masterpiece and a classic. Nor is it usually the case that when a book comes to an end, one feels they have been profoundly and eternally changed by the book. But both things happened to me as I reached the final page of this wonderfully written book by Kahneman.
As a double major in Psychology and Mathematical Economics, I could instantly recognize the theoretical implications that this book will surely have in both fields as well as the practical implications it will exert in both the private and the public life. Despite Kahneman's repeated warnings against making predictions in an unstable environment, I am confident that decades later this book will become the Wealth of Nations of behavioral economics. Why? Because the idea presented by Kahneman is incredibly simple - that intuitions are not always accurate and people do not always behave rationally. But sometimes the simplest ideas are also the most powerful, especially when they are backed up by both common sense and empirical data. And in this case, Kahneman's simple idea will without a doubt wreck irrevocable havoc in the field of economics. ...more