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> Apparently, the Cockerel makes a noise that signifies the proximity of food in order to entice the hens into the farmyard, so that he can mate with them. In e

> Apparently, the Cockerel makes a noise that signifies the proximity of food in order to entice the hens into the farmyard, so that he can mate with them. In essence, it is genetically bred into the animal kingdom, that the better the liar the chicken is, the more likely it is that his genes will be spread. The ultimate, in many ways for any life forms meaning of existence. Falling for the deceit is not actually bad, because you want to mate with the liar that gets away with it the best. If the male chicken then grow up to be the best liars, the hen wins. Interestingly, this probably means it's only a winning strategy if you are good at identifying liars. If you are easily pursuaded by the worst liars, there is no benefit. Like in investing: I want to invest in a company which can pursuade me, the same way I want them to pursuade the next investor, whom I can sell to. (It also means there is no incentive to expose the best liars, which creates a positive feedback loop of lauding them instead, allowing them to lie to the next person.)

kadoban 3y ago
> It also means there is no incentive to expose the best liars, which creates a positive feedback loop of lauding them instead, allowing them to lie to the next person. Are you ignoring that shorts exist here?
- tommiegannert 3y ago
  Yes, good point, though I suspect shorts are much less common than longs, especially in PE, so on average, the best liars would be raised. Maybe the shorts even have incentive to let the liars go further, so they can get a higher entry.
powersnail 3y ago
> creates a positive feedback loop of lauding them instead, allowing them to lie to the next person That's just pyramid selling, isn't it?
- tommiegannert 3y ago
  If you focus on the money, yes. But my point in your quote was about the incentive to continue to promote existing liars. If you've already found someone convincing (lying or not), you're likely to continue betting on them. The alternative would be to find the next promising company and invest in that instead. Either way, you'd be investing money and hope for the Greater Fool when you need to sell.

kadoban 3y ago

> It also means there is no incentive to expose the best liars, which creates a positive feedback loop of lauding them instead, allowing them to lie to the next person. Are you ignoring that shorts exist here?

tommiegannert 3y ago
Yes, good point, though I suspect shorts are much less common than longs, especially in PE, so on average, the best liars would be raised. Maybe the shorts even have incentive to let the liars go further, so they can get a higher entry.

powersnail 3y ago

> creates a positive feedback loop of lauding them instead, allowing them to lie to the next person That's just pyramid selling, isn't it?

tommiegannert 3y ago
If you focus on the money, yes. But my point in your quote was about the incentive to continue to promote existing liars. If you've already found someone convincing (lying or not), you're likely to continue betting on them. The alternative would be to find the next promising company and invest in that instead. Either way, you'd be investing money and hope for the Greater Fool when you need to sell.