Skip to content

Nassim Nicholas Taleb on Rationality, Risk, and Skin in the Game

Nassim Nicholas Taleb on Rationality, Risk, and Skin in the Game

Nassim Nicholas Taleb, author of Skin in the Game, talks with EconTalk host Russ Roberts about the ideas in the book. This is the third episode of EconTalk with Taleb related to the general topic of skin in the game and how it affects decision-making and policy in an uncertain world. This episode focuses on rationality, religion, and the challenge of…

People

Notes

What Can Nassim Taleb Teach Us About Probabilities at 2:12

Most people don't understand probabilities. They think that if a probability of success is high, that means they can benefit from it indefinitely. Full answer
What Trading Rule Does Nassim Taleb Say Keeps a Trader Alive? at 6:42

Nassim Nicholas Taleb told Russ Roberts on EconTalk that surviving traders skip the ornate model. Full answer
How Do You Gamble Without Losing Money at 8:47

Be diligent about only playing with the house money. Start with a small bet, and if you lose, place an even smaller bet. Full answer
What Is Mental Accounting and Why Is It Important at 9:30

Mental accounting is a behavioral economics term which states that treating money according to its source is irrational. Full answer
How Can Something Safe Also Be Incredibly Risky at 16:26

If something is safe, but has a low probability of risk, then do it often enough and the risk factor rises. Full answer
Why Won't Nassim Taleb Sit Down at a Casino Table? at 24:04

Nassim Nicholas Taleb told Russ Roberts on EconTalk that years as a trader left him unable to gamble. Full answer
What Is the Rationality of Religion at 25:30

Religion enables people to convey a certain behavior throughout generations, it promotes survival for the people who have it. Full answer
What Is the Meaning of "skin in the Game" at 40:44

What people do is more meaningful than what people say. Full answer
How Did Losing Money Help President Trump Get Elected at 44:39

While his adversaries were implying that losing money was a negative trait, Trump's supporters saw it as a positive. Full answer
Who Should We Fail and Who Should We Bail at 46:41

It depends on the probabilistic outcomes and the value of one's output to our society. Full answer

Related notes

Related episodes

Plays from this note through the rest of the episode.

Note