{"id":5051,"date":"2012-01-06T07:08:08","date_gmt":"2012-01-06T12:08:08","guid":{"rendered":"http:\/\/onthe8spot.com\/?p=5051"},"modified":"2012-01-06T07:08:08","modified_gmt":"2012-01-06T12:08:08","slug":"repostthe-quiz-daniel-kahneman-wants-you-to-fail-business-vanity-fair","status":"publish","type":"post","link":"http:\/\/onthe8spot.com\/index.php\/2012\/01\/06\/repostthe-quiz-daniel-kahneman-wants-you-to-fail-business-vanity-fair\/","title":{"rendered":"rePost::The Quiz Daniel Kahneman Wants You to Fail &#124; Business &#124; Vanity Fair"},"content":{"rendered":"<blockquote><p>5a. Choose between getting $900 for sure or a 90 percent chance of getting $1,000.<br \/>\nA. Getting $900<br \/>\nB. 90 percent chance of getting $1,000<br \/>\n5b. Choose between losing $900 for sure or a 90 percent chance of losing $1,000.<br \/>\nA. Losing $900<br \/>\nB. 90 percent chance of losing $1,000<br \/>\nHide explanatory note \u2191<br \/>\nThe results of this simple problem set, for which most participants answer A and then B, were used to develop the thesis that would make Kahneman and Tversky famous: prospect theory. In a 1979 paper, they documented a peculiar behavioral tendency: when people faced a gain, they became risk averse; when they faced a loss, they became risk seeking. As a result of their discovery, Kahneman and Tversky debunked Bernoulli\u2019s utility theory, a cornerstone of economic thought since the 18th century. (Bernoulli first proponed that a person\u2019s willingness to gamble a certain amount of money was a product of how that amount related to his overall wealth\u2014that is, $1 million means more to a millionaire than it does to a billionaire.)<br \/>\nAlong with playing a large role in Kahneman\u2019s being awarded the Nobel Prize in 2002, the theory also spawned a new academic pursuit, the field of behavioral economics. Prospect theory, Michael Lewis writes, explains \u201cwhy people are less likely to sell their houses and their stock portfolios in falling markets; why, most sensationally, professional golfers become better putters when they\u2019re trying to save par (avoid losing a stroke) than when they\u2019re trying to make a birdie (and gain a stroke).\u201d<br \/>\nvia <a href=\"http:\/\/www.vanityfair.com\/business\/features\/2011\/12\/kahneman-quiz-201112.print\">The Quiz Daniel Kahneman Wants You to Fail | Business | Vanity Fair<\/a>.<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"<p>5a. Choose between getting $900 for sure or a 90 percent chance of getting $1,000. A. Getting $900 B. 90 percent chance of getting $1,000 5b. Choose between losing $900 for sure or a 90 percent chance of losing $1,000. A. Losing $900 B. 90 percent chance of losing $1,000 Hide explanatory note \u2191 The &hellip; <\/p>\n<p class=\"link-more\"><a href=\"http:\/\/onthe8spot.com\/index.php\/2012\/01\/06\/repostthe-quiz-daniel-kahneman-wants-you-to-fail-business-vanity-fair\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;rePost::The Quiz Daniel Kahneman Wants You to Fail &#124; Business &#124; Vanity Fair&#8221;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[73],"tags":[],"class_list":["post-5051","post","type-post","status-publish","format-standard","hentry","category-psychology"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/onthe8spot.com\/index.php\/wp-json\/wp\/v2\/posts\/5051","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/onthe8spot.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/onthe8spot.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/onthe8spot.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/onthe8spot.com\/index.php\/wp-json\/wp\/v2\/comments?post=5051"}],"version-history":[{"count":0,"href":"http:\/\/onthe8spot.com\/index.php\/wp-json\/wp\/v2\/posts\/5051\/revisions"}],"wp:attachment":[{"href":"http:\/\/onthe8spot.com\/index.php\/wp-json\/wp\/v2\/media?parent=5051"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/onthe8spot.com\/index.php\/wp-json\/wp\/v2\/categories?post=5051"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/onthe8spot.com\/index.php\/wp-json\/wp\/v2\/tags?post=5051"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}