The field’s origins grew mostly out of the work, beginning in the 1970s, of Daniel Kahneman and Amos Tversky, two psychologists whose experiments have demonstrated that people can behave unexpectedly when confronted with simple choices. We have many automatic biases — we’re more averse to losses than we are interested in gains, for instance — and we make repeated errors in judgment based on our tendency to use shorthand rules to solve problems.
