The impact of Daniel Kahneman and team´s researches in management

Abstract

Decision making has a fundamental role in the manager´s performance. Up until Daniel Kahneman´s researches, Decision Theory was focused on the Expected Utility Theory. The Prospect Theory´s closer viewpoint to reality gave place to the inclusion of subjective elements that affect the decision-maker. Risk aversion in a win scenario and risk tolerance in loss situations together with diminishing sensitivity became pillars for hundreds of studies that apply the Theory in areas such as psychology, economy, and management. This paper reviews literature on the subject applicable to the manager´s performance. The categorization of the paper organizes the applications in individual, organizational and public management factors providing an overview of the current situation and serve as a starting point for future analysis.