Harvard Business Review

OCTOBER 9, 2012

Psychologists Daniel Kahneman and Amos Tversky attributed this tendency to what they called the "availability" heuristic (rule of thumb): our minds give inordinately heavy weighting to the most readily available/recent/vivid data and experiences. A final example comes from the domain of career management.

Banking 8

Banking Tversky Real Estate Kahneman 8

Harvard Business Review

JULY 2, 2013

Amos Tversky and I] concluded from many such observations that ''losses loom larger than gains'' and that people are loss averse.". One of the most famous risk-takers in recent memory is JP Morgan''s "London Whale," Bruno Iksil, who doubled down on a losing bet rather than admit his losses, ultimately costing the bank over six billion.

Kahneman 8

Kahneman Tversky Hedge Banking 8

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. Risk modeling in the banks grew out of probability theory.

Uncertainty 10

Uncertainty Kahneman Banking System 10