Economic essays

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Daniel  Kahneman:     Beware  the  ‘inside  view’  

In an excerpt from his new book, Thinking, Fast and Slow, the Nobel laureate recalls how an inwardly focused forecasting approach once led him astray, and why an external perspective can help executives do better.

Daniel Kahneman

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In the 1970s,

A shocking disconnect

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Why the inside view didn’t work

1  and  I  later  labeled  the  inside  view  and  the  

inside  view  

1       New  York  

Times

something

How an outside view can help

outside  view

Daniel Kahneman is professor emeritus of psychology and public affairs at Princeton University’s Woodrow Wilson School of Public and International Affairs. He was awarded the 2002 Nobel Prize in Economic Sciences for his seminal work in pros- pect theory, which challenges the rational model of judgment and decision making. This article is an edited excerpt from his new book, Thinking, Fast and Slow, published by Farrar, Straus and Giroux (US), Doubleday (Canada), and Allen Lane (UK). Copyright © 2011 by Daniel Kahneman. All rights reserved.

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