Written by Reuven Brenner
Over the years, some economists carried out laboratory experiments and argued that people are inconsistent in ways they assess risks and probabilities. They concluded that it is misleading to rely on other economists鈥� view of risk, and that economics cannot be separated from psychology. This field of study is known today as 鈥渂ehavioral economics鈥� (Kahneman and Tversky its founders), which, as briefly shown here, is neither 鈥渂ehavioral,鈥� nor 鈥渆conomics,鈥� nor makes sense.
