Harvard Business Review

AUGUST 1, 2012

"You have to deliver $300 million in incremental growth by 2015," the business unit head told the leader of his innovation team. But anyone with near-term innovation targets with nine (or six or even four) digits in them should ensure they are familiar with the concept of "planning fallacy.". Then early results disappoint.

Innovation 13

Innovation Planning Kahneman Tversky 13

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 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. You can imagine how much these companies lose.

Uncertainty 9

Uncertainty Kahneman Banking System 9

Harvard Business Review

APRIL 2, 2014

It feels like it’s got a little bit of Kahneman and Tversky in it. Mini-glossary: The size factor means that small-cap stocks outperform bigger companies. Instead what he says is let’s have financial innovation that is actually helpful. There’s also a size factor and a value factor. You have to say where it is exactly.

CAPM 8

CAPM Discount Price Finance 8