Monthly Archives: February 2013

Book Culture Book Store New York CityStop in on Tuesday, February 26th at 7pm for Nassim Taleb’s book party for Antifragile.

536 West 112th Street
Between Broadway and Amsterdam
New York, NY 10025-1601
Phone – 212-865-1588 Fax – 212-865-2749
info@bookculture.com

Event link: http://site.booksite.com/6665/events/?&list=EVC1&group=current&preview=1
Facebook Discussion: https://www.facebook.com/permalink.php?story_fbid=214165742061434&id=13012333374

 Here is what I wrote in my endorsement: Emanuel Derman has written my kind of a book, an elegant combination of memoir, confession, and essay on ethics, philosophy of science and professional practice. He convincingly establishes the difference between model and theory and shows why attempts to model financial markets can never be genuinely scientific. It vindicates those of us who hold that financial modeling is neither practical nor scientific. Exceedingly readable.

From the remarks here, people seem to be blaming Derman for not having written the type of books they usually read… They are blaming him for being original! This is very philistinic. This book is a personal essay; if you don’t like it, don’t read it, there is no need to blame the author for not delivering your regular science reporting. Why don’t you go blame Montaigne for discussing his personal habits in the middle of a meditation on war inspired by Plutarch?

Customer Review: Models.Behaving.Badly.: Why Confusing Illusion with Reality Can Lead to Disaster, on Wall Street and in Life (Paperback)

From Nassim Taleb’s Facebook Page:

Friends, comments are invited for this draft on a philosophy paper w/ Constantine Sandis, “ETHICS AND ASYMMETRY: SKIN IN THE GAME AS A REQUIRED HEURISTIC FOR ACTING UNDER UNCERTAINTY

C. Sandis & N.N. Taleb
Abstract: We propose a global and mandatory heuristic that anyone involved in an action that can possibly generate harm for others, even probabilistically, should be required to be exposed to some damage, regardless of context. We link the rule to various philosophical approaches to ethics and moral luck.

http://www.fooledbyrandomness.com/SandisTaleb.pdf

Link to Paper: http://www.fooledbyrandomness.com/SandisTaleb.pdf
Link to Facebook Discussion: https://www.facebook.com/permalink.php?story_fbid=515541175165176&id=13012333374

We’re more fooled by noise than ever before, and it’s because of a nasty phenomenon called “big data.” With big data, researchers have brought cherry-picking to an industrial level.

Modernity provides too many variables, but too little data per variable. So the spurious relationships grow much, much faster than real information.

In other words: Big data may mean more information, but it also means more false information.

Link: Beware the Big Errors of ‘Big Data’
http://www.wired.com/opinion/2013/02/big-data-means-big-errors-people/