Harvard Business Review

FEBRUARY 29, 2012

This idea of prospect theory, developed by Tversky and Kahneman and reported in a classic 1979 article (for which the Nobel prize was awarded) demonstrated that individuals do not make decisions rationally by selecting options with the highest expected value, because they are risk-averse and 'losses loom larger than gains.'.

Kahneman 16

Kahneman Tversky Company Innovation 16

Harvard Business Review

JUNE 21, 2012

Since then, numerous studies have found evidence of the bias at racetracks and other sports betting markets all around the world. Indeed, it is probably the most discussed empirical regularity in sports gambling markets, and the literature documenting it now runs to well over a hundred scientific papers.

Tversky 15

Tversky Kahneman Rate of Return Sports 15

Harvard Business Review

JUNE 20, 2014

This popular triumph of the “ heuristics and biases ” literature pioneered by psychologists Daniel Kahneman and Amos Tversky has made us aware of flaws that economics long glossed over, and led to interesting innovations in retirement planning and government policy. It is not, however, the only lens through which to view decision-making.

Uncertainty 13

Uncertainty Kahneman Banking System 13