Relevance of Kahneman and Tversky's

Whilst the greatest effort has been made to ensure the quality of this text, due to the historical nature of this content, in some rare cases there may be minor issues with legibility. 1. This research was funded by National Science Foundation Grant BNS-8107331. The author benefitted from numerous insightful comments from Ed Conlon, Terry Connelly, Kathy Kram, John Martin, Phil Mirvis, and two anonymous reviewers. Correspondence should be sent to Max H. Bazerman, Massachusetts Institute of Technology, Sloan School of Management, 50 Memorial Drive, Cambridge, Ma, 02139.