Davidson graduated from University of California, Berkeley.

Davidson's first job was as a reporter with the Boston Globe. She has also written for magazines including The Atlantic Monthly, Esquire. Harper's Magazine, Life, McCall's, Ms., The New York Times Magazine, Newsweek, O, The Oprah Magazine, Ramparts and Rolling Stone.

In addition to having her novel Loose Change adapted for a mini-series, Davidson wrote and produced a number of television series. She created the series Jack and Mike, and HeartBeat. She was the co-executive producer for Dr. Quinn, Medicine Woman.