Economics, Videos

Nassim Nicholas Taleb: “Skin In The Game”

American essayist, scholar and former trader Nassim Nicholas Taleb, whose work focuses on problems of randomness, probability, and uncertainty, discusses his latest book “Skin in the Game“.

Nassim explores the notion that ‘skin in the game’ is necessary for fairness, commercial efficiency, and risk management, and key to making sense of the world at large.

Nassim Nicholas Taleb
Image source: Bloomberg Video Screenshot

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Nassim Nicholas Taleb: “Skin in the Game” | Talks at Google

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Transcript

Thank you very much for your phone. Yeah. I was very privileged to present at Google when Antifragile came out. In California. And won. It was six years ago and one observation I would make is that the average age in this room is six years older. Than it was six years ago. So. So I'm gonna talk about my book skin in the game and the book is not idea. And the first thing before we start. To discuss how I write. How. The whole body of work is organized. And what is the. And why it's in a fractal. Organize effectively. My my idea that this book can be summarized. Two things One it will not survive. And the second thing is not worth reading. You read a summary a book cannot be about an idea no more than a painting is about something other than being a painting. So the book has to be a self standing item that you cannot reuse. And that may communicate some message or not that's not the relevant point. It's got to be organized in a way that read it in a fractal way. So the way it's written you have sentences. Paragraphs. Sections chapters and volumes and everything has to be integrated as a whole. So. So that was the idea that the idea of the Certeau five volumes. On uncertainty and the idea is. To write for the author to write on his or her own terms. That's my home office right. And I do it myself with passion.

All right I write on my own terms. The first volume was Fooled by Randomness is an interesting book but nobody wanted to publish it. Nobody could figure out what it was about. It had probability had finance. People. I mean what does finance have to those is probably. It had fictional characters. Nero tulip. And then there's me. What does a fictional crack or a fable have to do with a book. That can figure out what it was about 10 0. The book is about philosophy. OK. Why is there any finance and a philosophy book. Or why nonfiction fictional and philosophy books so I wrote them I want them to get lost. And I keep writing on my own terms and in the end the book survives. So what is my modus operandi when writing the insert. Now. There is a restaurant. Called. Used to be a restaurant called Vendy that closed on the day. This was published. It went bankrupt. This was published. It delivered very very. I would say I don't know if inedible. Conveys the right impression. The absolutely horrible that was known for its cheesecake. But you know what happens when you get famous for cheesecake. You sort of cut corners and it becomes inedible after a while but to just keep plugging in for a while until they know. So the thing went bust. Right. Or my book. And the problem that there's something named after that restaurant called The Lindi effect. Now what does a Lindi effect.

It was discovered that restaurant by actors that plays because the restaurant specialized in. Given a cheap coffee or undrinkable coffee to unemployed actors employed actors. By the way are usually unemployed. Particularly on Broadway so they sit down and talk about plays right. So. The. They discovered that a play that had been around for 200 days had an expert 100 days of the pregnancy