In a bigger departure from classical theory, Daniel Kahneman and Amos Tversky suggested that people in general tend to follow a different path from the one the utility curve demands, not just when Daniel Ellsberg sticks an urn in front of them, but in the general course of life. Their “prospect theory,” for which Kahneman later won the Nobel Prize, is now seen as the founding document of behavioral economics, which aims to model with the greatest possible fidelity the way people do act, not the way that, according to an abstract notion of rationality, they should. In the Kahneman-Tversky
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