Lessons from Enron -- And Why We Don't Learn from Them
Commercial Lending Review, p. 23, May-June 2009
5 Pages Posted: 5 Jun 2009 Last revised: 1 Aug 2009
Date Written: June 3, 2009
This article discusses why even the smartest of people can make boneheaded decisions, and it suggests that the only way to avoid future Enrons is to take into account the cognitive mistakes that humans tend to make.
Keywords: Corporate scandals, corporate governance, cognitive errors, cognitive dissonance, Milgram, Asch, Enron
JEL Classification: M10, K1, K19, K20, K22, K42
Suggested Citation: Suggested Citation