In its announcement, the Royal Swedish Academy of Sciences cited Kahneman "for having integrated insights from psychological research into economic science, especially concerning human judgment and decision-making under uncertainty." Kahneman's work, it said, has laid the foundation for a new field of research by discovering how human judgment may take shortcuts that systematically depart from basic principles of probability. (Oct. 2002)
Reference
http://webscript.princeton.edu/~psych/psychology/research/kahneman/index.php
http://www.princeton.edu/pr/home/02/1009_kahneman/hmcap.html
http://webscript.princeton.edu/~psych/PsychSite/fac_kahneman.html
http://nobelprize.org/economics/laureates/2002/kahneman-autobio.html