<ul><li> In mediocristan environments, there’s a limit to the amount of randomness or deviation from the average. Inequalities exist, but they’re mild or controlled. Usually, there’re some physical constraints (e.g. height, weight, running speed) which limit the amount of variability. For example, if you add the tallest or heaviest man in history to a sample size of 1,000 people, the outlier won’t make a real difference to the average.</li></ul>

2 Types Of Uncertainty: Extremistan Vs Mediocristan

Trying To Assess Real - World Like You Would In A Game Can Lead you to making the wrong choicesAnother fallacy Taleb describes is called the music fallacy. This one explains why we do such bad jobs at getting the right insurance policy, for example.When faced with the task to assess risk in the real world, we usually try to imagine the risk like a game, where there’s a set of rules and probabilities that we can determine up front, in order to then make the right decision.

In Extremistan environments, there can be wild randomness and extreme deviations. Typically, there’re no physical constraints and no known upper/lower limits (e.g. knowledge, financial markets, e-books sales, social media “likes”). Thus, the outliers can make a big difference - if you add the net worth of Jeff Bezos or Bill Gates to a group of 1,000 people, it will drastically shift the average.

Extremistan

For thousands of years, it was widely believed that all swans were white. Then in 1697, a Dutch explorer Willem de Vlamingh discovered black swans in Australia, debunking this universal “truth” overnight. The term “Black Swan” has since been used to describe the occurrence of a seemingly impossible event

What Are Black Swans And Why Are They Imp

Black Swans dramatically change the reality of those, who aren’t aware that they’re comingThe author calls an even a “Black Swan” if it’s unpredictable not because it’s random, but because our outlook on what’s possible was too narrow. Imagine you’d known about the 9/11 attacks in advance. You wouldn’t have been surprised. In some cases, a Black Swan is only a tragedy for a single person. However, often it affects entire societies. Just think of Copernicus’s discovery that the sun is the centre of the universe, not the earth, or Armstrong set foot on the moon.

Taleb identifies 3 key features of Black Swans: <ul><li> Rarity: Black Swans are outliers that can’t be reasonably expected to happen based on based past events.</li><li>They have a profound impact on our society/world.</li><li>Retrospective predictability: Although the events are unpredictable, humans tend to explain then on hindsight as if they could be perfectly understood and predicted.</li></ul>

Three Lessons:

Black swans are not inconsequential anomalies, but a significant phenomenon that shapes the very world we live in. Many historical events that drastically impacted our societies and lives were actually Black Swan events. These include the 2 world wars, the fall of the Berlin Wall, the 11th September 2001 terrorist attacks, the rise of the internet or the 2019 - 2020 Covid pandemic.In all these cases, no one could’ve predicted the events in advance

Overview

Based on the only we can be certain of - what was happened in our lives in the past - we weave a narrative that makes sense and expect that the future simply must unfold this way. For example, imagine you’re turkey and for years you live on a farm, get to roam free everyday and are fed great food by a farmer. Why would you expect anything to change? But if tomorrow’s Thanksgiving, you’re just 24 hours away from getting killed, stuffed and roasted.

Don’t Use Your Past To Explain The Future

The uncertainties to the world events can b me unpredictable.

The most influential book of the past seventy-five years: a groundbreaking exploration of everything we know about what we don’t know, now with a new section called “On Robustness and Fragility.” A black swan is a highly improbable event with three principal characteristics: It is unpredictable; it carries a massive impact; and, after the fact, we concoct an explanation that makes it appear less random, and more predictable, than it was. The astonishing success of Google was a black swan; so was 9/11. For Nassim Nicholas Taleb, black swans underlie almost everything about our world, from the rise of religions to events in our own personal lives. Why do we not acknowledge the phenomenon of black swans until after they occur? Part of the answer, according to Taleb, is that humans are hardwired to learn specifics when they should be focused on generalities. We concentrate on things we already know and time and time again fail to take into consideration what we don’t know. We are, therefore, unable to truly estimate opportunities, too vulnerable to the impulse to simplify, narrate, and categorize, and not open enough to rewarding those who can imagine the “impossible.” For years, Taleb has studied how we fool ourselves into thinking we know more than we actually do. We restrict our thinking to the irrelevant and inconsequential, while large events continue to surprise us and shape our world. In this revelatory book, Taleb will change the way you look at the world, and this second edition features a new philosophical and empirical essay, “On Robustness and Fragility,” which offers tools to navigate and exploit a Black Swan world. Taleb is a vastly entertaining writer, with wit, irreverence, and unusual stories to tell. He has a polymathic command of subjects ranging from cognitive science to business to probability theory. Elegant, startling, and universal in its applications, The Black Swan is a landmark book—itself a black swan.

productivity

Productivity

problemsolving

Problem Solving

books

Books

The Black Swan is a standalone book in Nassim Nicholas Taleb’s landmark Incerto series, an investigation of opacity, luck, uncertainty, probability, human error, risk, and decision-making in a world we don’t understand. The other books in the series are Fooled by Randomness, Antifragile, and The Bed of Procrustes. A black swan is a highly improbable event with three principal characteristics: It is unpredictable; it carries a massive impact; and, after the fact, we concoct an explanation that makes it appear less random, and more predictable, than it was. The astonishing success of Google was a black swan; so was 9/11. For Nassim Nicholas Taleb, black swans underlie almost everything about our world, from the rise of religions to events in our own personal lives.   Why do we not acknowledge the phenomenon of black swans until after they occur? Part of the answer, according to Taleb, is that humans are hardwired to learn specifics when they should be focused on generalities. We concentrate on things we already know and time and time again fail to take into consideration what we don’t know. We are, therefore, unable to truly estimate opportunities, too vulnerable to the impulse to simplify, narrate, and categorize, and not open enough to rewarding those who can imagine the “impossible.”   For years, Taleb has studied how we fool ourselves into thinking we know more than we actually do. We restrict our thinking to the irrelevant and inconsequential, while large events continue to surprise us and shape our world. In this revelatory book, Taleb explains everything we know about what we don’t know, and this second edition features a new philosophical and empirical essay, “On Robustness and Fragility,” which offers tools to navigate and exploit a Black Swan world.   Elegant, startling, and universal in its applications, The Black Swan will change the way you look at the world. Taleb is a vastly entertaining writer, with wit, irreverence, and unusual stories to tell. He has a polymathic command of subjects ranging from cognitive science to business to probability theory. The Black Swan is a landmark book—itself a black swan.   Praise for Nassim Nicholas Taleb   “The most prophetic voice of all.”—GQ   Praise for The Black Swan   “[A book] that altered modern thinking.”—The Times (London)   “A masterpiece.”—Chris Anderson, editor in chief of Wired, author of The Long Tail   “Idiosyncratically brilliant.”—Niall Ferguson, Los Angeles Times   “The Black Swan changed my view of how the world works.”—Daniel Kahneman, Nobel laureate   “[Taleb writes] in a style that owes as much to Stephen Colbert as it does to Michel de Montaigne. . . . We eagerly romp with him through the follies of confirmation bias [and] narrative fallacy.”—The Wall Street Journal   “Hugely enjoyable—compelling . . . easy to dip into.”—Financial Times   “Engaging . . . The Black Swan has appealing cheek and admirable ambition.”—The New York Times Book Review From the Hardcover edition.

Nassim Nicholas Taleb is an accomplished writer whose work has resonated with readers around the world. Nassim Nicholas Taleb has published several books that explore a range of topics, from fiction to nonfiction, and has received critical acclaim for the ability to weave compelling narratives. Nassim Nicholas Taleb's writing style is known for its depth and authenticity, and has earned quite a loyal following of readers.

What Are Black Swans And Why Are They Imp

Similar ideas to What Are Black Swans And Why Are They Imp

What are Black Swans and why are they important