Daniel Kahneman

Fujitsu launches 'digital twin' trial on Isle of Wight for e-scooter sharing service

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Wednesday, April 19, 2023
Psychology, Social, HM Treasury, Isle of Wight, Policy, Transport, Digital twin, Twersky, Business, Quality of life, SX, Public policy, Humanities, The Right Honourable, Economics, Cabinet, Journal, Daniel Kahneman, MP, City, Weather, Knowledge, AI, Digital, Beryl, Environment, CO2, Behavior, Islander, Online shopping, The Solent, Isle, Fujitsu

Fujitsu began trials of the new technology on April 1, in cooperation with Beryl(1), a shared mobility company based in the UK.

Key Points: 
  • Fujitsu began trials of the new technology on April 1, in cooperation with Beryl(1), a shared mobility company based in the UK.
  • Together they will demonstrate the business and societal value of the technology, by improving the operation of shared e-scooter services on the Isle of Wight.
  • The trials on the Isle of Wight, use digital rehearsal technology to test in advance the effects of people switching from cars to e-scooters.
  • The Right Honourable Dr Bob Seely MBE, MP for Isle of Wight said "I strongly welcome Fujitsu's investment on the Island.

Financial stability and macroprudential regulation under diagnostic expectations

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Saturday, November 26, 2022
Diamond, The Journal of Finance, Journal, DSGE, European Central Bank, University of Mannheim, S, Credit, Ricardian equivalence, Economics, Crash, Policy, Daniel Kahneman, Journal of Money, Credit and Banking, Judgement, American Economic Review, Disagreement, Investment, Element, Instability, Review, Political economy, Magazine, Arab Center for Consultancy & Economic Studies, Central bank, Decision-making, University, Hart O. Berg, Business, Journal of Political Economy, RESEARCH, Global, Ben Bernanke, Welfare, The Review of Economic Studies, Writing, McGraw Hill Education, Risk, George Selgin, Directorate, P, Nature, Rafael Bordalo Pinheiro, Frictional unemployment, Literature, McMillan, Private sector, History, Risk management, Bank, Security (finance), Bookkeeping, Machine tool, Real estate, Dybvig, Gertler, Maxted

In this article, we examine the joint implications of external financing frictions and cognitive misperceptions for the stability of the financial system and the appropriate conduct of macroprudential regulation.

Key Points: 
  • In this article, we examine the joint implications of external financing frictions and cognitive misperceptions for the stability of the financial system and the appropriate conduct of macroprudential regulation.
  • [2]
    Relative to the rational benchmark, diagnostic expectations and their interactions with financing frictions exacerbate instability in financial markets and economic activity.
  • Financial implications of financing frictions and diagnostic expectations (1/2)

    Notes: The chart illustrates interactions between fluctuations in financial net worth (i.e.

  • Blue ink indicates additional effects over a world with rational expectations that stem from diagnostic expectations.
  • First, diagnostic expectations intensify a positive interaction between fluctuations in financial net worth and fluctuations in asset prices (Chart 1).
  • Financial implications of financing frictions and diagnostic expectations (2/2)

    Notes: The chart reports stationary density functions of the aggregate capitalisation of financial intermediaries under rational and diagnostic expectations.

  • Relative to the rational framework, under diagnostic expectations, appropriate macroprudential restrictions on new credit to the nonfinancial sector are tighter, even when the regulator is subject to the same expectations as the private sector.
  • These results naturally reveal disagreements among potential regulators with differing degrees of diagnostic expectations about the appropriate regulation.
  • We examine the joint implications of external financing frictions and diagnostic cognitive misperceptions about economic fundamentals or asset prices for the stability of the financial system and the appropriate conduct of macroprudential regulation.
  • The key result is that diagnostic expectations exacerbate financial instability relative to the benchmark of rational expectations.
  • This finding calls for tighter macroprudential regulation even when the regulator is also subject to misperceptions.

In a significant new paper published in MIT Sloan Management Review, Nobel laureate Daniel Kahneman and strategy professors Dan Lovallo and Olivier Sibony introduce a new approach to making smarter strategic decisions.

Retrieved on: 
Monday, March 4, 2019
Academic disciplines, Cognition, Articles, MIT Sloan School of Management, Massachusetts Institute of Technology, Decision-making, Creativity, Daniel Kahneman

CAMBRIDGE, Mass., March 4, 2019 /PRNewswire/ -- Nobel laureate Daniel Kahneman and strategy professors Dan Lovallo and Olivier Sibony offer a breakthrough approach to complex decision-making in a significant new paper, " A Structured Approach to Strategic Decisions ," published today by MIT Sloan Management Review.

Key Points: 
  • CAMBRIDGE, Mass., March 4, 2019 /PRNewswire/ -- Nobel laureate Daniel Kahneman and strategy professors Dan Lovallo and Olivier Sibony offer a breakthrough approach to complex decision-making in a significant new paper, " A Structured Approach to Strategic Decisions ," published today by MIT Sloan Management Review.
  • Yet, companies tend to approach their most complex decisions including both one-off and recurrent strategic decisions without discipline and rigor.
  • The antidote to this vulnerability is a structured, broadly applicable approach proven to reduce errors in decision-making.
  • MIT Sloan Management Review captures for thoughtful managers the creativity, excitement, and opportunity generated by rapid organizational, technological, and societal change.