Behavioural Economics and Economic Thinking

In this article I explain how behavioural economics relates to orthodox thinking. In 2002 Daniel Kahneman was awarded the Nobel Prize for his work in behavioural economics. His Thinking, Fast and Slow is an international best-seller. The foundations of Kahneman’s work were built in collaboration with the late Amos Tversky as long ago as the 1970s. Four decades later, behavioural economics is finally becoming incorporated into economics teaching both at university and, increasingly, school level.