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But then how does that jive with skin in the game? In his Nassim's teaching he brings up the example of the idea that the Roman engineers that built/designed th
by petermcneeley 3y ago
But then how does that jive with skin in the game?
In his Nassim's teaching he brings up the example of the idea that the Roman engineers that built/designed the bridges were forced to have their families live under the bridges. It sounds like those engineers directly involved in the practice do understand the risk of their domains it is merely their incentives that need to be aligned.
- dist-epoch 3y ago> But then how does that jive with skin in the game Simple. Nassim says there are 4 quadrants, one axis Mediocristan-Extremistan, the other Simple-Complex payoff. Building a bridge is Mediocristan/Simple payoff, a well understood problem with no black swans. So it's easy to compute risk. Other stuff is Extremistan/Complex payoff - financial trading, pandemics, AI. And he argues that you need RISK professionals for this quadrant, because people working here (traders, virologists, AI builders) do not understand how to compute the risk correctly. https://www.researchgate.net/profile/Gaute-Bjorklund-Wangen/publication/318853336/figure/fig4/AS:931308163301378@1599052577229/Talebs-four-quadrants-for-Risk-Classification-Based-on-Taleb143.ppm https://www.researchgate.net/profile/Gaute-Bjorklund-Wangen/...
- petermcneeley 3y agoYou think the virologists do not understand the risks? And what are the biases of the risk professionals? What are their motives?