amos tversky had died in 1996 the daniel kahneman was still alive.ix years before his nobel prize. i went up and saw danny. we still have a relationship with him. i would listen to him talk about the relationship he had with amos tversky. irealized that the one term had taught at the university of california berkeley, one of my favorite students was amos tversky' oldest childs. and we had a friendship. family wasy -- their very generous and they opened his life to me. also was generous. that is how the book started. it was organic. it took me quite a bit of time to see just what the story was. and how to tell it. it took me quite a bit of time to decide it was a book. charlie: in fact, you are not sure you were up to it. michael: true. it is not the first time i have felt that way but i felt more that way than i have ever felt before. the superficial reasons were that at the heart of the book, you have an intellectual discipline, psychology, that i had to teach myself about. and you had a backdrop of israel in the early days which is a really peculia

amos tversky had died in 1996 but daniel kahneman was still alive.ix years before his nobel prize. i went up and saw danny. we struck up a relationship over the years. i would listen to him talk about the relationship he had with amos tversky. i realized that the one term i had taught at the university of california berkeley, one of my favorite students was amos tversky's oldest child. and we had a friendship. their family was very generous and they opened his life to me. to the extent they could. and danny, it took him for three years to represent around the idea i would write a book about him. that is how the book started. it was organic. it took me quite a bit of time to see just what the story was. and how to tell it. it took me quite a bit of time to decide it was a book. charlie: in fact, you were not sure you were up to it. michael: true. it is not the first time i have felt that way but i felt more that way than i have ever felt before. there were a couple reasons. the superficial reasons were that at the heart of the book, you have an intell

it tells the story of two israeli psychologists, daniel kahneman and amos tversky. and some of their groundbreaking work uncovering the human mind. new york times says the book combines intellectual rigor with complex portraiture. he has written one hell of a love story and a tragic one at that. i am pleased to have michael lewis back at this table. it is worth noting how you came to know these two guys. michael: i had written "moneyball." which was about the way in my mind that markets misvalue people, in this case baseball

michael: well, when i realized that danny kahneman and amos tversky, their work on the way the human mind had trouble dealing with uncertainty and made systematic misjudgments, a kind of infected all the stuff i had done before. i didn't feel this was so far off my beaten path. their work helps explain what goes on in financial crises and and also stories like "moneyball." jane: but how does it do that? --re is one floatation quotation, they changed the way people think about how people think. what does that mean? michael: they were the first to systematically explore the mistakes people make, the uncertain situation, a judgment of who to hire for a job or what investment to make or who to vote for for president. they show that people systematically do make mistakes, and that instead of thinking probabilistically about the world, people tell stories, and the way they tell stories is warped by the way memory works, by the fact they think in stereotypes, all sorts of things that these guys explore. that is a big deal. it means that if people can be systematically wrong, markets can be

i went up and met danny and we ars and i would listen to him talk about this relationship with amos tversky. it didn't take long i realized the one term i had taught at the university of california berkley, one of my favorite steurchlts was a kid name owner tversky who happened to be amos tversky's oldest child. and we had a friendship and so the tversky family was very generous, kind of opening up his papers and his life to me. to the extent they could. and danny, after oh it took him two or three years to get his mind around the idea i was going to write a book about him. it was pretty organic and it took quite a bit of time for me to see just what this story was and how to tell it. so i took time before i said this is a book. >> rose: in fact, you were not sure you were up to it. >> true. it's not the first time i felt that but i felt more that way than i ever felt before and there were a couple reasons. the superficial reasons at the heart of the book you've got an intellect cull psychology i had to teach myself about. and you had a back drop of israel in the early days which is a reall

. >> stephen: walk into a bar -- yeah, yeah, right. ( laughter ) so amos tversky and daniel kahnemaney're both psychologists and amos tversky died in 1996, but they died about a love affair, they were engaged in exploring how the human mind worked when making judgments and decisions in an unemotional state. when people thought they were being rational, what were they doing? the undoing project itself was the project they were working on when the love affair busted up. it was their name for the project. specifically what they were looking at at the time, they were trying to delineate the rules of the human imagination, and the way they were getting at it was looking at the way people undid a tragedy. daniel kahneman, one of the characters -- >> stephen: how they dealt with the emotion of the tragedy? >> they say, in a way, it starts with daniel kahneman's nephew, two days away from being released from the israeli air force flying upside down and being killed. danny notices everybody saying if only, if only he had been released two days earlier. if only the flare hadn't gone up and bli

it tells the story of two israeli psychologists, daniel kahneman and amos tversky.ys the book combines intellectual rigor with complex --. he has written one hell of a

it tells the story of two israeli psychologists, daniel kahneman and amos tversky.g work uncovering the human mind. new york times says the book combines intellectual rigor with complex portraiture. he has written one hell of a love story and a tragic one at that. i am pleased to have michael lewis back at this table.

they finished one of their papers amos would basically wait by the phone at 2:00 or 3:00 in the morning for danny's call saying, destroyer our reputations. >> tversky died 20 years ago at the stage of 59. kahneman went on to win the nobel prize for integrating psychological research into economics. in 2013, president obama awarded him the medal of freedom. >> all of us have moments when we look back and wonder what the heck was i thinking. i have that quite a bit. psychologist made that simple question his life's work. >> kahneman and tversky showed that gut instinct is car from dependable. there was a lesson in that for lewis himself, a man strongly self confident. are you more likely now to listen to your wife, listen to your editors? >> to answer that is yes, a little bit. my wife would totally disagree. i mean, totally disagree. but i actually have taken this have very strong impulses that i often obey. and they have misled me spin cases, they have worked out in other cases. from my life sorry i could build a mayortive ha my but is great ha shy poll it. because i forget the mistakes it led to and i remember the successes. >> one success, should