WHY NOT TO ENGAGE IN STANDARD DEBATES/FOLLOW NEWS (LESS IS MORE, or “It is not the quantity but the *quality* of arguments that matters”). This graph shows the relative role of independent factors in a system, with among, say 30 identifiable factors, 97% of the variations can be attributed to the first 2 factors (a system with “fat tails” will be even more concentrated with 99.999% coming from one single factor). The remaining 28 factors are chickens**t. The graph presents a statistical view of the “less is more” argument, and why one should not follow the news for, in a given month, “low loads” represent 99.99% of the conversation and .01% of the contribution.
If you are right on factor 1 (& possibly 2), the rest is irrelevant. But the problem is that those trained in debate will drag you into factors 3 through 99, just to distract from the core issue.
I have decided to avoid Cambridge and Oxford Union debates, those discussion with people trained in argument by debating societies. The Oxbridge system of “covering all sides of an issue” drives you to the irrelevant and drowns your Factor 1 argument. If you do things right you should have “only one argument”, which clashes with this culture.
(This graph also explains in statistical terms the “lady complains too much”, or why a “balanced” view presenting drawbacks is everything but balanced.)
Monthly Archives: January 2013
sp!ked review of books | Body-building for nation states
Nevertheless, his claims should be taken seriously and the institutions that receive the most caustic criticism are the media, academia and government. These analyses are among his most interesting and amusing. The government and academia suffer from what he drily calls the ‘Soviet-Harvard’ fallacy: top-down research initiatives resulting in papers that are only read by those wishing to become research directors themselves. Society benefits from its true builders – entrepreneurs and traders – not academics. The numerous failures of businessmen are heroic acts, according to him, ensuring that some succeed where others fail.
via sp!ked review of books | Body-building for nation states.
Antifragile, Flexibility, Robust, Resilience, Agility, and Fragile « Si Alhir (Sinan Si Alhir)
Fundamentally, Taleb’s approach focuses on Gain and Loss while Hamel’s, Holling’s, and Husdal’s approaches focuses on Adaptation — each perspective and approach emphasizes various aspects of Reality.
Taleb’s Antifragile is tremendous in reinforcing and expanding the concept of creative destruction. We now have the onus to further explore antifragility, integrate antifragility with other concepts, and leverage antifragility in practice… our journey begins!
via Antifragile, Flexibility, Robust, Resilience, Agility, and Fragile « Si Alhir (Sinan Si Alhir).
Nassim Nicholas Taleb | The age of black swans – Livemint
The highlight of 2012 for me was when, during a difficult moment, I received a message of encouragement from a firefighter.
His point was that he found my ideas on tail risk extremely easy to understand. His question was: How come risk gurus, academics, and financial modellers don’t get it?
Well, the answer is right there, staring at me, in the message itself. The fellow is a firefighter; he cannot afford to misunderstand risk. He is the one who would be directly harmed by his error. In other words, he has skin in the game. And, in addition, he is honourable, risking his life for no bonus.
This idea of skin in the game is central to the proper functioning of a complex world. In an opaque system, alas, there is an incentive for operators to hide risk, taking upside without downside. And there is no possible risk-management method that can replace skin in the game—particularly when informational opacity is compounded by informational asymmetry, along with what economists call the principal-agent problem.
via Nassim Nicholas Taleb | The age of black swans – Livemint.