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

JULY 23, 2012

The psychologists Daniel Kahneman and Amos Tversky demonstrated quite convincingly that we human beings are not the model-optimizing "rational" actors that many economists historically believed we are. Those who see the world probabilistically seem to better navigate volatile environments because they are wired to embrace uncertainty.

Uncertainty 14

Uncertainty Tversky Kahneman Self-aware 14

Harvard Business Review

APRIL 2, 2014

Others, most notably money managers and former Fama students Cliff Asness and John Liew in an epic Institutional Investor article , have done a lot recent to clarify how Fama’s ideas and Shiller’s can at least co-exist peacefully. It feels like it’s got a little bit of Kahneman and Tversky in it. Lars is famous for that. Absolutely.

CAPM 10

CAPM Discount Price Finance 10