Skin in the Game: Hidden Asymmetries in Daily Life

Skin in the game helps to solve the Black Swan problem and other matters of uncertainty at the level of both the individual and the collective: what has survived has revealed its robustness to Black Swan events and removing skin in the game disrupts such selection mechanisms.

all warlords and warmongers were warriors themselves, and, with a few curious exceptions, societies were run by risk takers, not risk transferors. Prominent

shinola”); he doesn’t know that there is no difference

Survival comes first, truth, understanding, and science later.

Avoid taking advice from someone who gives advice for a living, unless there is a penalty for their advice.

happens in our first example that making lemonade compliant with kosher laws doesn’t change the price by much—it is a matter of avoiding some standard additives.

justice,

Decentralization reduces large structural asymmetries.

So I will diverge from Popper in the following. For things to survive, they necessarily need to fare well in the risk dimension, that is, be good at not dying.