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Why We Shouldn't Bank on Growth

Harvard Business Review

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.

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The Hidden Danger of Being Risk-Averse

Harvard Business Review

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.

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The Science of What We Do (and Don't) Know About Data Visualization

Harvard Business Review

As a case in point, Cleveland promoted an idea that he called banking to 45 degrees. Barbara Tversky and Jeff Zacks found in the early 2000s that lines imply transitions whereas bars imply individual values. There are many open questions today, and we also realize the gaps and problems with some of the work performed.

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Instinct Can Beat Analytical Thinking

Harvard Business Review

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.