2002Nobel Prizes

Tel Aviv-born Daniel Kahneman shares the Nobel Prize in Economics.

The prize announced on 9 October 2002 honours him for bringing psychology into economics, in work he did with Amos Tversky.

12
of the prize, shared with Vernon Smith
SourceNobelPrize.org
21
his age when he set up the army's interviews
SourceNobelPrize.org
23
years from prospect theory to the prize
SourceNobelPrize.org

Here is how it happened.

1934
Daniel Kahneman is born in Tel Aviv.
His mother is visiting relatives, and the family's home is in Paris. After his father dies in 1944, he moves with his mother and sister to Palestine.
SourceNobelPrize.org
1954 to 1956
As an army psychologist he sets up an interview system for officer candidates.
He is drafted as a second lieutenant in 1954 and leaves the army in 1956. The interview system stays in use for many decades, with little change.
SourceNobelPrize.org
1961
He earns his PhD and returns to teach in Jerusalem.
The degree is from the University of California at Berkeley. He then teaches psychology at the Hebrew University.
SourceNobelPrize.org
1968 to 1969
A graduate seminar starts a partnership with Amos Tversky.
Kahneman invites his younger colleague to tell the class about judgment and decision-making. He calls it a life-changing event.
SourceNobelPrize.org
1974 and 1979
Two papers show how people judge by shortcuts and weigh losses.
A 1974 paper in Science covers judgment under uncertainty, and a 1979 paper in Econometrica sets out prospect theory. People tend to be more averse to a loss than partial to an equal gain.
SourceNobelPrize.org
9 October 2002
The Royal Swedish Academy of Sciences announces the prize.
It is divided equally between Kahneman and Vernon Smith. Kahneman's half is for integrating psychological research into economics, especially human judgment and decision-making under uncertainty.
SourceNobelPrize.org

1 of 6

More pictures from this story.

Kahneman speaking on a conference stage

Here is why it matters.

He showed that people often judge and decide in ways standard economic theory does not predict. The Nobel announcement says his work laid the foundation for a new field of research.

2005
Hebrew University's Robert Aumann wins the Nobel Prize in Economics.
Read the story
2021
Joshua Angrist, an Israeli-American economist, shares the Nobel Prize in Economics.
Read the story
2025
Joel Mokyr, affiliated with Tel Aviv University, shares the Nobel Prize in Economics.
Read the story

Where each fact was read.

Sources read on 1 November 2026.

The story in numbers.

Here is how it happened.

Daniel Kahneman is born in Tel Aviv.

As an army psychologist he sets up an interview system for officer candidates.

He earns his PhD and returns to teach in Jerusalem.

A graduate seminar starts a partnership with Amos Tversky.

Two papers show how people judge by shortcuts and weigh losses.

The Royal Swedish Academy of Sciences announces the prize.

More pictures from this story.

Here is why it matters.

Three more milestones to read next.

Hebrew University's Robert Aumann wins the Nobel Prize in Economics.

Joshua Angrist, an Israeli-American economist, shares the Nobel Prize in Economics.

Joel Mokyr, affiliated with Tel Aviv University, shares the Nobel Prize in Economics.

Where each fact was read.