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 14

Kahneman Tversky Company Innovation 14

Harvard Business Review

JUNE 13, 2012

In 2005, Dimon hired Ina Drew to head the company's Chief Investment Office, the unit responsible for the bank's risk exposure. 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. MORE ON MANAGING RISKY BEHAVIORS.

Banking 9

Banking Kahneman Document Simon 9

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

FEBRUARY 24, 2015

The first category is exogenous factors over which the business has little control: the growth of the markets into which it sells; the competitive intensity and thus the average profitability of the industry in which it operates; or the fragmentation of its industry and thus the scope for a growth-by-acquisition approach.

Chemicals 8

Chemicals How To Kahneman Reputation 8