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Daniel Kahneman's legacy is best understood in light of developments in economic theory in the early-mid-20th century, when economists were eager to put utility functions on a firm mathematical foundation. The axiomatic system that provided this foundation was not originally intended to be normative in a prescriptive sense but later came to be seen that way. Kahneman took the axioms seriously, tested them for descriptive accuracy, and found them wanting. He did not view the axioms as necessarily prescriptive. Nevertheless, in the research program he conceived, factual discoveries about real decision-making were stated as deviations from the axioms and thus deemed 'errors'. This was an unfortunate turn that needs to be corrected for the psychological enrichment of economics to proceed in a productive direction.
Keyword:
rationality
axioms
errors
biases
normative behavior
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