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.

In the 1970s, I convinced some officials in the Israeli Ministry of Education of the need for a curriculum to teach judgment and decision making in high schools.

10 Questions for Daniel Kahneman

About the Author

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 prospect 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.