Nassim Nicholas Taleb is the author of The Black Swan, one of the most influential books of the past 50 years. The book is concerned with randomness and uncertainty, and our chronic inability to accurately fathom and measure these phenomena. According to Taleb, a Black Swan event is one that is unpredictable yet has wide-spread ramifications. This article is about the problem of induction and how this relates to Black Swan events.
The name for the Black Swan Theory comes from history. Prior to 1697, a black swan had never been observed by anyone in Western civilization. Many people therefore believed that all swans were white and there was no such thing as a black swan. However, a black swan was finally observed in western Australia in 1697, and the fallacy that black swans didn’t exist was proven wrong.
This idea illustrates the problem of induction, one of Taleb’s primary arguments. Just because every swan observed in the west until 1697 was white does not allow you to conclude that every swan is white, or that other types of swans (like black swans) don’t exist. However, this is a mistake that many people make.
Taleb also illustrates the problem of induction with the parable of the Thanksgiving turkey. Imagine that a turkey is born on a farm. Every day, it is fed regularly and has a shelter to sleep in. For 1,000 days, the turkey has a very happy and perfectly content existence. The turkey wakes up on the 1,001st day and expects more of the same. However, that day is Thanksgiving and the turkey finds himself on the chopping block. The turkey used inductive reasoning to conclude that because every day so far had been happy, the next day must be happy as well, and his conclusion was obviously false. Thanksgiving day is a Black Swan event for the turkey because he couldn’t have predicted his fate, but it is a white swan event for the farmer. After all, he’s the one doing the chopping.
Mediocristan vs. Exstremistan
Nassim Nicholas Taleb is the author of The Black Swan, one of the most influential books of the past 50 years. The book is concerned with randomness and uncertainty, and our chronic inability to accurately fathom and measure these phenomena. According to Taleb, a Black Swan event is one that is unpredictable yet has wide-spread ramifications. This article is about Mediocristan vs. Exstremistan and why understanding the difference between the two is crucial.What is a Black Swan Event?
Nassim Nicholas Taleb is the author of The Black Swan, one of the most influential books of the past 50 years. The book is concerned with randomness and uncertainty, and our chronic inability to accurately fathom and measure these phenomena. According to Taleb, a Black Swan event is one that is unpredictable yet has wide-spread ramifications. This article is about how we can define a Black Swan event.