An inability to be guided by a “healthy fear” of bad consequences is a disastrous flaw. - Daniel Kahneman

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An inability to be guided by a “healthy fear” of bad consequences is a disastrous flaw.

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About Daniel Kahneman

Daniel Kahneman (March 5, 1934 – March 27, 2024) was an Israeli-American psychologist. He shared the 2002 Nobel Memorial Prize in Economic Sciences with Vernon L. Smith. Kahneman is notable for his work on the psychology of judgment and decision-making, behavioral economics and hedonic psychology. Latterly, he was professor emeritus of psychology and public affairs at Princeton University's Woodrow Wilson School.

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Also Known As

Native Name: דניאל כהנמן
Alternative Names: D Kahneman D. Kahneman Kahneman Kahneman D Kahneman D.
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Additional quotes by Daniel Kahneman

When forecasting the outcomes of risky projects, executives too easily fall victim to the planning fallacy. In its grip, they make decisions based on delusional optimism rather than on a rational weighting of gains, losses, and probabilities. They overestimate benefits and underestimate costs. They spin scenarios of success while overlooking the potential for mistakes and miscalculations. As a result, they pursue initiatives that are unlikely to come in on budget or on time or to deliver the expected returns — or even to be completed. In this view, people often (but not always) take on risky projects because they are overly optimistic about the odds they face. I will return to this idea several times in this book — it probably contributes to an explanation of why people litigate, why they start wars, and why they open small businesses.

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