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Life is Luck — Here’s How to Plan a Career Around It

Harvard Business Review

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. Chance plays a much greater role in our careers than we might wish or even realize. There are no “starving dentists.”

Career 8
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Your Judgment of Risk Is Compromised

Harvard Business Review

Daniel Kahneman and Amos Tversky provide perhaps the best theoretical framework in which to understand the phenomenon. MORE ON MANAGING RISKY BEHAVIORS. A Beekeeper's Perspective on Risk. Before You Take a Risk, Lay Out the Logic. Embracing Risk in Career Decisions.

Tversky 11
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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. What’s the problem with the way that turkey approached risk management?

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Why Companies Are Betting Against Big Ideas

Harvard Business Review

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.'.