The Trouble with Confidence
Daniel Kahneman Discusses the Problems with Being Too Brash
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Daniel Kahneman is a professor of psychology and public affairs at Princeton University. He was awarded the Nobel Memorial Prize in Economics in 2002 for his work in prospect theory.
Kahneman’s speech touches on how he believes that brash thinkers create a myriad of issues in rational problem solving and simple living. Society avoids truth about uncertainty and rewards overconfidence. This ideology allows for fueled conflict and tension-ridden issues. Kahneman argues that two biases are at work: illusion and optimism. Young entrepreneurs do not know the odds that they are likely to fail, and proceed to enter into the field with optimism. This optimism may encourage perseverance, but it hinders strategic decision making.
