Accounting Fast and Slow: Thinking About Analysis

John F. Levy, MBA, CPA

Do we really understand why we, and our companies, make the decisions? We may believe that we make decisions only after acquiring all the facts, carefully considering all the alternatives and logically choosing the best option. However, Nobel prize-winner in Economics Daniel Kahneman and his long-time collaborator Amos Tversky have proven in numerous experiments and studies that we make most decisions by intuition and not analysis. We will examine Kahneman and Tversky’s groundbreaking work and its implications on us, our companies and the accounting profession.