Nassim Taleb of NYU-Poly talks with EconTalk host Russ Roberts about his recent paper (with Constantine Sandis) on the morality and effectiveness of “skin in the game.” When decision makers have skin in the game–when they share in the costs and benefits of their decisions that might affect others–they are more likely to make prudent decisions than in cases where decision-makers can impose costs on others. Taleb sees skin in the game as not just a useful policy concept but a moral imperative. The conversation closes with some observations on the power of expected value for evaluating predictions along with Taleb’s thoughts on economists who rarely have skin in the game when they make forecasts or take policy positions.
Direct Link (mp3): http://files.libertyfund.org/econtalk/y2013/Talebskin.mp3
Link to the Paper: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2298292
Nassim Taleb, the banker-turned-philosopher who predicted the financial collapse of 2008, has been called ‘the hottest thinker in the world’. His internationally bestselling book, The Black Swan, was about the impact of rare, unpredictable events. In his latest book he expands on this theory and comes up with the concept of ‘antifragile’ – the idea that through small shocks and surprises humans (and financial systems) can become more than robust – they can thrive and become antifragile. But critics have labelled this theory ‘antisocial’. Rana Mitter meets Nassim Taleb to test the robustness of his ideas, on Night Waves, at 10pm.
Audio Link: http://www.bbc.co.uk/programmes/b01nzq6p
From the Sept. 11 terrorist attacks to the 2008 financial collapse, many of the most consequential events in recent history caught government and investors off guard. In 2007, Nassim Nicholas Taleb provided a highly influential framework for explaining, and adapting to, these unpredictable shocks to political and financial systems, with his book “The Black Swan.” His latest work, “Antifragile,” expands on his theory of the unknown to explain how we can succeed and thrive in a world ruled by disorder.
Direct Audio Link: http://thekojonnamdishow.org/audio-player?nid=22510
The Predictability of Unpredictability from The RSA on Vimeo.
Renowned academic and author Nassim Nicholas Taleb discusses his groundbreaking ideas and their relevance to the current economic crisis, national policy making and other topics with Rohan Silva, senior policy advisor to the Prime Minister.
Watch on YouTube | Audio Download | Video Download | Nassim’s Presentation (PDF) | Nassim Nicholas Taleb’s Biography on RSA