Serial Innovators: A book review by Bob Morris

First Friday Book Synopsis

Bob's blog entries Amos Tversky “Analysis of the Top 50 U.S. Serial Innovators: Firms That Change the World Claudio Feser John Wiley & Sons (2012) How and why continuous innovation and adaptation can help an organization “live” longer What we have here is a “hybrid” narrative that develops on two separate but interdependent levels: a fictional account that focuses on Carl Berger (CEO of American Health [.].

How Leaders Can Develop Their Skills With One Simple Habit

Tanveer Naseer

The idea of cognitive biases was introduced by Amos Tversky and Daniel Kahneman in the early 1970s. Tversky and Kahneman also showed that they could predict quite accurately when people would act irrationally, because the irrational behavior was due to measurable cognitive biases.

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Decision Bias

CO2

First, Arnott reviewed some of the most prominent taxonomies: Tversky and Kahneman (1974) Three General Purpose Heuristics. by Gary Cohen. He who knows and knows that he knows, He is wise, follow him. He who knows and knows not that he knows, He is asleep, awaken him.

Do you fit the management stereotype?

Chartered Management Institute

Probably the best known experiment into representativeness heuristics was conducted by Amos Tversky and Daniel Kahneman in the 70's. The chances are you haven't heard of representativeness heuristics, and there's no real reason for you to do so. They represent the stereotypes and biases we use on a daily basis to help us make fast judgements about a particular situation. Most of the time they're quite useful but every now and then they can trip us up, so it pays to be aware of them.

What I Didn’t Know About Becoming a CEO

Harvard Business Review

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. The company I co-founded is now ten years old.

The Planning Fallacy and the Innovator's Dilemma

Harvard Business Review

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.

The End of Economists' Imperialism

Harvard Business Review

Two years later, in 2002, the co-leader of that invasion, Princeton psychology professor Daniel Kahneman, won an economics Nobel (the other co-leader, Amos Tversky, had died in 1996). "By almost any market test, economics is the premier social science," Stanford University economist Edward Lazear wrote just over a decade ago. The field attracts the most students, enjoys the attention of policy-makers and journalists, and gains notice, both positive and negative, from other scientists.".

A Case for Group Risk-Taking

Harvard Business Review

I didn’t realize that noted academics Amos Tversky and Daniel Kahneman were studying this exact phenomenon, which they officially named “ loss aversion.”. I work in the investment business, where risk-taking is an occupational necessity. There isn’t anyone successful at managing a mutual or hedge fund who avoids risk; we just need to face it carefully.

Keep Experts on Tap, Not on Top

Harvard Business Review

The psychologists Daniel Kahneman and Amos Tversky demonstrated quite convincingly that we human beings are not the model-optimizing "rational" actors that many economists historically believed we are. Among the many qualities that distinguish successful leaders from millions of less-successful executives in the world is an awareness of the limits of their knowledge.

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.'.

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. A key aspect of risk intelligence is recognizing the limits to your knowledge. People's judgment of risks is deeply compromised by psychological biases.

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. Researchers have confronted us in recent years with example after example of how we humans get things wrong when it comes to making decisions.

The Business Lessons of the Belmont Stakes

Harvard Business Review

Daniel Kahneman , a renowned psychologist who won the Nobel Prize in economics, developed this concept in the 1970s along with his collaborator, Amos Tversky. I'll Have Another will try to enter the pantheon of horseracing by winning the Belmont Stakes , the final leg of the Triple Crown, on Saturday night (June 9, 2012). Editor's note: On Friday afternoon, June 8, a leg injury forced I'll Have Another out of the race.)

Why Those Guys Won the Economics Nobels

Harvard Business Review

It feels like it’s got a little bit of Kahneman and Tversky in it. When the Riksbank Prizes in Economic Sciences (a.k.a. the economics Nobels) were announced last fall , the news was greeted with some confusion and amusement.

The F-35 and the Tradeoff Fallacy

Harvard Business Review

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.

Why We Shouldn't Bank on Growth

Harvard Business Review

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.

Reframe Your Strategy to Avoid Hidden Biases

Harvard Business Review

These biases arise from what Kahneman and his long-time research partner Amos Tversky call framing. The last decade has seen an increased appreciation of behavioral economics and its effect on the practice of management. In a recent HBR article , Daniel Kahneman, Dan Lovallo, and Olivier Sibony outline the questions that a decision-maker needs to ask before making a strategic bet.

What Your Brand Can Learn from Political Rhetoric

Harvard Business Review

Another election, another framing battle. And once again, the Republican party seems to have the edge. Tax relief, death taxes, pro-life, small government, tax and spend. Why don't Democrats come up with these kinds of memorable, emotive frames? Take this election cycle's biggest controversy: health care reform. Republicans sidelined their rivals by framing the Patient Protection and Affordable Care Act around "mandates" and "taxes," and by calling it "Obamacare."

The Business Lessons of the Belmont Stakes

Harvard Business Review

Daniel Kahneman , a renowned psychologist who won the Nobel Prize in economics, developed this concept in the 1970s along with his collaborator, Amos Tversky. I'll Have Another will try to enter the pantheon of horseracing by winning the Belmont Stakes , the final leg of the Triple Crown, on Saturday night (June 9, 2012). Following exciting wins in the Kentucky Derby and the Preakness, the chestnut colt is trying to do what no horse has done in 34 years.