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Reminds me of "the ludic fallacy": https://en.m.wikipedia.org/wiki/Ludic_fallacy https://en.m.wikipedia.org/wiki/Ludic_fallacy Which points out... Casinos are
by danblick 10y ago
Reminds me of "the ludic fallacy":
https://en.m.wikipedia.org/wiki/Ludic_fallacy https://en.m.wikipedia.org/wiki/Ludic_fallacy
Which points out... Casinos are sometimes a bad model for randomness in the real world. In a casino you have only "known unknowns", but in the real world it's "unknown unknowns" that often cause problems.
- pdkl95 10y agoFrom that wiki page: > gravitating towards mathematical purity and failing to take various aspects into account Mark Blyth puts a lot of blame specifically on the "seductive" quality of mathematical models. https://www.youtube.com/watch?v=hmWbkPezgtU https://www.youtube.com/watch?v=hmWbkPezgtU It may be beautiful math, but that doesn't mean it actually models anything useful with any amount of accuracy and precision. Combine that with the social inertia and status-quo-preserving reactions of the people who created or used the bad models, and you get our current economic situation.
- ikeboy 10y agoPlenty of people have exploited casinos' unknown unknowns (first card counting, then other tricks)