ABSTRACT
This chapter demonstrates decision-making processes which are driven at a subconscious level, cognitive heuristics and biases. Amos Tversky and Daniel Kahneman’s “Judgment under Uncertainty: Heuristics and Biases” challenged the dominant model of neoclassical economics, which assumed that decision-making is essentially rational, and laid the foundation for the emergence of a new field of study: behavioral economics. This new field is growing rapidly and attracting ever more researchers and practitioners. The group of scholars involved in the roundtable convened by the Russell Sage Foundation, a foundation that sponsors research in social science, is continuing to research and evangelize about the benefits of using behavioral insights and behavioral economics to influence behavior. Many of these scholars, including the American economists Richard Thaler, Colin Camerer, David Laibson, George Loewenstein, and the legal scholar Cass Sunstein, are engaged in academic work related to decision-making. “Judgment under Uncertainty” is essential reading for anyone interested in decision-making.
