How Kahneman’s Final Decision Sheds Light on Human Rationality Limits

Daniel Kahneman, Nobel laureate and father of behavioral economics, chose assisted dying in March 2024, a personal decision that underscores his lifelong insights into human irrationality, as his prospect theory and dual‑system model continue to shape economics, psychology, AI, and decision‑making across fields.

Prospect TheoryPsychologycognitive bias

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How Kahneman’s Final Decision Sheds Light on Human Rationality Limits

Model Perspective

Oct 6, 2023 · Fundamentals

Why We Irrationally Choose: Unpacking Prospect Theory’s Value & Weight Functions

This article explains Prospect Theory, detailing its value and weight functions, how they model loss aversion and probability distortion, and compares the theory with traditional expected utility through an investment decision example and illustrative graphs.

Prospect Theorydecision makingloss aversion

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Why We Irrationally Choose: Unpacking Prospect Theory’s Value & Weight Functions

Didi Tech

May 9, 2019 · Artificial Intelligence

Weber-Fechner Law, Prospect Theory, and Their Data Science Applications

The article explains the Weber‑Fechner law and its role in Prospect Theory, then shows how Didi applies these concepts—using a log‑linear order‑distance model and reference‑point‑based strategy evaluation—to reduce cancellations, improve driver perception, and guide data‑driven product decisions.

Data ScienceDidiProspect Theory

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Weber-Fechner Law, Prospect Theory, and Their Data Science Applications