Nov. 14 (Bloomberg) — Nassim Nicholas Taleb, a professor at New York University and author of “The Black Swan” and “Antifragile: Things That Gain From Disorder,” talks about risks created by government debt and Federal Reserve monetary policy. He speaks with John Dawson on Bloomberg Television’s “First Up” on the sidelines of Barclays Asia Forum in Hong Kong. (Source: Bloomberg)
What can we learn from Mr Dawkins’ errors and misuse of probability?
How to Love Randomness: Antifragile Responses in the Human Body and Their Consequences
Nassim Taleb, Ph.D., M.B.A.
“Micro-Mooc on a paper by Taleb and Tetlock (one manifestation of the LUDIC FALLACY). There are serious statistical differences between predictions, bets, and exposures that have a yes/no type of payoff, the “binaries”, and those that have varying payoffs, which we call the “vanilla”. Real world exposures tend to belong to the vanilla category, and are poorly captured by binaries. Yet much of the economics and decision making literature confuses the two. Vanilla exposures are sensitive to Black Swan effects, model errors, and prediction problems, while the binaries are largely immune to them. The binaries are mathematically tractable, while the vanilla are much less so. Hedging vanilla exposures with binary bets can be disastrous–and because of the human tendency to engage in attribute substitution when confronted by difficult questions,decision-makers and researchers often confuse the vanilla for the binary.”
The paper is here: http :// papers. ssrn. com/ sol3/ papers.cfm? abstract_id= 2284964
More general Fat Problems with Tails: http:// www. fooled by randomness. com/ FatTails. html
Micro Mooc #3. The law of large numbers is the most important thing in life and science. It is the basis of epistemology and problem of induction. How many observations do you need to know if something is true? We get into the plumbing and show how it is too slow under fat tails. This is a simplified (but technical) presentation of a segment of “Probability and Risk in the Real World”, the Technical Companion for The Black Swan http:// www. fooled by randomness. com/ FatTails. html
A quick tutorial introducing the idea of Fat Tails in about 8 minutes, as simply as possible. Fat Tails make us understand the world much less than we think; they make much of the quantitative results in social “science” anecdotal (or worse, negative information).
The main (more complicated) text is at http:// www. fooled by randomness. com/ FatTails. html
A definition of fragility from Part V of Antifragile by Nassim Nicholas Taleb and technical papers. This is simplified.
This starts a series of micro Moocs. The aim is an intuitive discussion of technical points in Nassim Nicholas Taleb’s Antifragile. Sort of Video footnotes.
Rafael del Pino Foundation organized, on July 3, 2013, the keynote of Nassim Nicholas Taleb titled “Antifrágil. Las cosas que se benefician del desorden” (Antifragile: Things that gain from disorder) on the occasion of the presentation of his work with the same title.
Preview: Entrevista. Antifrágil. Las cosas que se benefician del desorden
Full talk: Conferencia. Antifrágil. Las cosas que se benefician del desorden.
The author and philosopher and the Ogilvy Group UK vice-chairman join John Plunkett at the Cannes Lions International Festival of Creativity to discuss how ideas relating to resilience, uncertainty, randomness and variation can apply to the advertising industry. They look at how the ’80/20′ theory of resource allocation can lead to disproportionate gains for minimal risk