Harvard Business Review

AUGUST 1, 2012

The basic concept , first presented by Nobel Laureate Daniel Kahneman and his partner Amos Tversky in an influential 1979 paper, is that human beings are astonishingly bad at estimating how long it will take to complete tasks. To get through the corporate approval gauntlet you have to project big numbers. The average actual cost?

Innovation 14

Innovation Planning Kahneman Tversky 14

Harvard Business Review

NOVEMBER 9, 2015

Of course, I love whenever we outperform our benchmark or peer group, but the pain of underperforming is much more painful than the pleasure of winning the same amount, a phenomenon studied at length by Daniel Kahneman and Amos Tversky. That made a huge impact on me.

CEO 8

CEO Tversky Kahneman Travel 8

Harvard Business Review

OCTOBER 9, 2012

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. This causes us to believe that the future will likely resemble the most recent past.

Banking 8

Banking Tversky Real Estate Kahneman 8

Harvard Business Review

JANUARY 3, 2013

Most predictably, cost overruns; this is, after all, a government project. First developed by Danny Kahneman and Amos Tversky in 1979, the planning fallacy simply states that people will consistently underestimate how long a task will take even when they have experience with similar tasks taking longer than expected.

Tversky 8

Tversky Kahneman Budgeting Planning 8

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. It is not, however, the only lens through which to view decision-making.

Uncertainty 10

Uncertainty Kahneman Banking System 10

Harvard Business Review

APRIL 2, 2014

It feels like it’s got a little bit of Kahneman and Tversky in it. So in that framework what do is you calculate the beta of your firm or your project with two components of the market return, and one of them is the one that you really worry about.

CAPM 8

CAPM Discount Price Finance 8