Nassim Taleb's The Black Swan is an excellent read about unpredictability, risk, forecasting, and falsification. A black swan is an event with three distinct characteristics: 1) it is unexpected, 2) its impact is profound, and 3) we explain its occurrence too readily (and incorrectly) by invoking hindsight bias. Examples of black swans include 9/11 attacks, Trump's presidential victory, or the international success of Jordan Peterson's book 12 Rules for Life . Taleb's book is full of insight, and he does an excellent job of demonstrating how we tend to underappreciate many essential concepts. Consider the problem of risk and casinos. Casinos have to manage risk to remain profitable. Odds in any game are stacked against individual players, especially in the long run. Even the risk of a "whale" (a high roller) getting "hot" can be factored in. Overall, then, casinos are very good at managing game related risks using mathematical modeling. ...
Hi! I'm Dawid and I study politics. Click here to learn about my research.