QAspire

JANUARY 22, 2018

The term ‘cognitive bias’ was coined by Amos Tversky and Daniel Kahneman in 1972 which quite simply means “our tendency to filter information, process facts and arrive at judgments based on our past experiences, likes/dislikes and automatic influences.”. This was a good opportunity to get back to the topic and add to my understanding.

Tversky 195

Tversky Senge Kahneman Workshop 195

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

APRIL 2, 2014

Campbell’s work has also made liberal use of the analytic tools developed by Hansen. Back in the ‘60s, people developed the capital asset pricing model [CAPM] as a way to do that. It feels like it’s got a little bit of Kahneman and Tversky in it. You’re going to have to take a worst reasonable case.

CAPM 8

CAPM Discount Price Finance 8