Daniel Kahneman News

Subscribe to enjoy similar stories. If you are the kind who reads the inside pages of newspapers, you may have noticed a surge in fraudulent digital arrests, WhatsApp money transfer scams, online Ponzi schemes, deepfake videos of famous people recommending some fraudulent investment and investors losing money on financial derivatives. The digital system as it has evolved is at the heart of such things.

Subscribe to enjoy similar stories. Irrationally exuberant investors who lose their shirts get a lot of attention. But there is another way to manage your money poorly: taking so little risk that you end up with little reward.

Subscribe to enjoy similar stories. The year has started and you have all the Nifty (or Nasdaq/S&P 500) forecasts for end 2025 from every stock-market expert, securities house and talking head on television. Keep them safe to check in December 2025.

Subscribe to enjoy similar stories. Economists assume that individuals act rationally, always responding to incentives in their own self-interest. They are assumed by many economic models to have complete information and the ability to perfectly calculate costs and benefits.

Internet in India Report 2023 report by not-for-profit industry body Internet and Mobile Association of India (IAMAI) showed that internet users in India have crossed the 800 million mark. Ninety per cent of them use the internet daily, spending an average of 1.5 hours. Apart from consuming OTT content, communication remains one of the top activities done on the internet in India.

bias, he says, he would like to eliminate the most if he had a magic wand. But it is built so deeply into the structure of the mind that you couldn’t change it without changing many other things – “Overconfidence” is the most damaging among all, says Daniel Kahneman, the Israeli-American author, psychologist, and economist who is known for his work in behavioural economics for which he was jointly awarded the 2002 Nobel Memorial Prize in Economic Sciences. I have been so fascinated by Kahneman’s writings and the way he explains the complexities of the human mind in decision making, that I decided to write about this Nobel Prize laureate’s tragic demise recently, which has left a void in the field of financial decision making.

Buy-ology (2010) and Dan Ariely’s Predictably Irrational (2010). At the time, both books were best-sellers and regularly cited alongside other widely read titles such as Malcolm Gladwell’s Blink. After I finished Lindstrom and Ariely’s books, I realised that the best sections in both owed their existence to the same man: Daniel Kahneman, the Nobel-winning psychologist, economist and writer who died last week, at the age of 90.

To most, professor Daniel Kahneman (1934-2024) is best known for his path-breaking explorations of how people’s decisions deviate from perfect rationality and the Nobel Prize he won for that work. For me, Professor Kahneman is someone who changed the course of my life. In the 1990s, I was an advertising professional.

Every year, the World Happiness Report ranks countries in terms of happiness by calculating their happiness scores. The six key variables that make up this index are GDP per capita, social support, healthy life expectancy, freedom, generosity and lack of corruption. These are mostly calculated on the basis of individual self-assessments.

The first thing students learn in Economics is that human beings act rationally. So, when a price comes down, we buy more of the product. This was the micro part of the story.

Daniel Kahneman, who passed away on 27 March at the age of 90, told us that our ability to make good decisions is not as easy as it appears. We rely too much on intuition for decisions that need deep and analytical thinking. Nowhere is this more apparent than in the process of making financial decisions. Here are the six mistakes Kahneman points out that can help investors avoid big money losses. 1.The Halo Effect The tendency to like everything about a person/management towards which investors have an affinity. A prime example is Asian Paints, a company that has been the darling of fund managers who look at ‘quality’ as their biggest parameter. These are companies that have high price-to-earnings (PE) ratios, but have built a ‘halo effect’, which basically states that irrespective of their valuations, these stocks will continue to give high returns. Over the past one year, the Asian Paints share has moved up by only 2%, against 30% rise in the Nifty. Even on a fiveyear basis, Asian Paints has lagged the Nifty. While the Nifty 50 rose 92%, Asian Paints rose 90%. The company had a PE ratio of 98x in 2021-22, which has now come down to almost 50x.

The letter, issued a week before the international AI Safety Summit in London, lists measures that governments and companies should take to address AI risks.