Delusions of success. How optimism undermines executives' decisions.

@article{Lovallo2003DelusionsOS,
  title={Delusions of success. How optimism undermines executives' decisions.},
  author={Dan Lovallo and Daniel Kahneman},
  journal={Harvard business review},
  year={2003},
  volume={81 7},
  pages={
          56-63, 117
        }
}
The evidence is disturbingly clear: Most major business initiatives--mergers and acquisitions, capital investments, market entries--fail to ever pay off. Economists would argue that the low success rate reflects a rational assessment of risk, with the returns from a few successes outweighing the losses of many failures. But two distinguished scholars of decision making, Dan Lovallo of the University of New South Wales and Nobel laureate Daniel Kahneman of Princeton University, provide a very… CONTINUE READING

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