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The Surprising Power of Business Experiments

Skip Prichard

Daniel Kahneman. When it finally came to my attention, I realized right away that large-scale, controlled experimentation would revolutionize the way all companies operate their businesses and how managers make decisions. The employee was forbidden to work on the project. ” -Stefan Thomke. It was immediately launched.

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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.'.