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 15, 2012

As detailed in Daniel Kahneman's best-selling book, Thinking, Fast and Slow , it is only human to misjudge how much we know — and how much others know. It includes decision analysis, game theory, and operations research. Only such evaluation allows leaders need to know if their experts are overconfident or underconfident.

Kahneman 15

Kahneman Game Theory Committee Analysis 15

Harvard Business Review

JUNE 21, 2012

Daniel Kahneman and Amos Tversky provide perhaps the best theoretical framework in which to understand the phenomenon. We will pay far more for a medical operation that increases our chance of surviving from 0% to 1% than one that increases it from 10% to 11%.

Tversky 14

Tversky Kahneman Rate of Return Sports 14

Harvard Business Review

JANUARY 27, 2014

Daniel Kahneman has claimed the following as his favorite equation: Success = talent + luck. Kahneman’s implication is that the difference between moderate and great success is mostly luck, not skill. Create portfolios – When operating in high-uncertainty environments, look for opportunities to diversify.

Career 8

Career Planning Kahneman Uncertainty 8

Harvard Business Review

JUNE 13, 2012

On April 4 of this year, Dimon read a short article in the Wall Street Journal about a JPMorgan trader in London, Bruno Iksil, who was making massive bets that exposed the bank to high levels of risk. At a meeting on April 8, Drew assured Dimon and the operating committee of JPMorgan that the trades were being well managed and would work out.

Banking 11

Banking Kahneman Document Simon 11