Ok, so the headline might be a bit deceptive. I was not actually, physically present
when these two scholars met. But if we take the meta-universe as our context, then I could…oh, I’ll just move along.
Check out this discussion between Daniel Kahneman and Nassim Nicholas Taleb. Trying to summarize an 80-minute discussion would make me an even larger fool of randomness than I was before, so I’ll just subject you to some of it instead! Cha-ching.
A key point of the discussion centered around the following theme: Size means fragility. In percentage terms, the larger the project, the greater the overruns; the larger the organization, the more susceptible they are to risk of bankruptcy; generally, the greater the degree of centralization, the more susceptible we are to extreme negative outcomes.
Most people will understand this point at some level. Taleb used the example of government, the economy, and large banks. I’ll use the example of decision-making in just about any context. Where one person or a small group of people make decisions from on high without a very good knowledge of the details of a situation, they may make small gains in terms of continuity. They may also cause large problems.
The effect is even worse when the person or group is focused on things that will have little impact, instead of those that will have a large one.
- Daniel Kahneman and Nassim Taleb NYPL 80 Minute Talk (valuewalk.com)
- What Nassim Taleb Misses About Technology and Innovation (forbes.com)
- A Reddit “Ask Me Anything” with Nassim Nicholas Taleb (readingbyeugene.com)
- Black Swan Author Nassim Nicholas Taleb on Fragility, Centralization, and Capitalism (txwclp.org)
- Black Swan Author Nassim Nicholas Taleb on Fragility, Centralization, and Capitalism (reason.com)