Mr. Kahneman and Mr. Tversky (the first died recently, the second in 1996) started working together in 1969. They, together with Richard Thaler, claimed to have stumbled on a new field of study, called “Behavioral Economics.” The practitioners of this field alleged to have found a range of behavior that required political, bureaucratic and economists’ interventions to correct, since – according to them - people did not understand what they were doing, and were unable to learn from their mistakes without expert advice from academics in this new field. Closer inspection reveals that there is nothing in their models, laboratory experiments, methods and anecdotal evidence to reach their conclusions.
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