Former derivatives traderturned philosophical essayist,Nassim Nicholas Taleb, joins us to talk about his new book, ‘Skin in the Game,” about the role risk and reward plays not only in politics but also our daily lives.
In a world where some people have certain advantages that others do not, how do you navigate the landscape while still acting ethically? My guest today argues that we all need to put some more skin in the game.
His name is Nassim Nicholas Taleb. If you read the AoM site, you’ve likely seen our articles about his antifragility concept. In his latest book, Skin in the Game: Hidden Asymmetries in Daily Life, he explores the ethics of living in a complex and uneven world. We begin our conversation discussing what Taleb means by skin in the game and how it’s similar to traditional notions of honor. Nassim then explains what he means by asymmetries, how people exploit them unethically, and how skin in the game can reduce that exploitation. Taleb then explains why ethics are hard to scale, why minorities end up ruling, and what it means to put not only skin, but soul in the game.
“Though what Taleb was really after was a discussion with Bryan, the philosopher, mathematician, and author most recently of Skin in the Game also generously agreed to a conversation with Tyler.
Nassim Nicholas Taleb talks with EconTalk host Russ Roberts about the manuscript version of his forthcoming book, Skin in the Game. Topics discussed include the role of skin in the game in labor markets, the power of minorities, the Lindy effect, Taleb’s blind spots and regrets, and the politics of globalization.
Nassim Nicholas Taleb, author of Antifragile, Black Swan, and Fooled by Randomness, talks with EconTalk host Russ Roberts about a recent co-authored paper on the risks of genetically modified organisms (GMOs) and the use of the Precautionary Principle. Taleb contrasts harm with ruin and explains how the differences imply different rules of behavior when dealing with the risk of each. Taleb argues that when considering the riskiness of GMOs, the right understanding of statistics is more valuable than expertise in biology or genetics. The central issue that pervades the conversation is how to cope with a small non-negligible risk of catastrophe.
Nassim Taleb is a literary essayist, hedge fund manager, derivatives trader and professor of risk engineering at The Polytechnic Institute of New York University. But he is best known these days as the author of The Black Swan: The Impact of the Highly Improbable. During a recent visit to Wharton as part of The Goldstone Forum, he spoke with Wharton finance professor Richard Herring — who taught Taleb when he was a Wharton MBA student — about events in the Middle East, the oil supply, investing in options, the U.S. economy, the dollar, health care and of course, black swans.
Nassim Taleb has been interviewed by James Altucher on his Podcast The James Altucher Show talking about technology and how different systems handle disorder.
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.
Friends, presenting Book IV of Antifragile at Stanford, 4:30, Open to the Public. Focus on Optionality/Convexity, or why you’d rather be antifragile and dumb than robust and educated & why they built cathedrals without knowledge of Euclidian geometry….