Skin in the game: Hidden
Asymmetries in daily life by Nassim Nicholas Taleb is a collection
of essays, philosophical discussion and commentary on events,
personalities, and things that are all around us and experienced by
us on a daily basis but we never stop and think about. As the title
suggests its about asymmetries in daily life. For example, have you
ever come across a person who benefits if you benefits but has
nothing to lose even if you lose everything. Who falls under this
category well...brokers, traders, policy makers and high level
administration.
Let's take another
example, have you ever thought how 3-4% minority population can
enforce their rule on 95% majority population? Think about Kosher
food. Even though majority of population is not Jewish, most of the
products are Kosher. Why? Well simple people who eat Kosher will not
eat non-Kosher food but people who do not eat Kosher food will eat
Kosher food with no reservations. Asymmetry.
This book is full of such
practical discussions and offers a higher level analysis to things
that we take for granted. The basis premise of this book as the title
says is that to understand anything you need skin in the game. You
cannot understand things by philosophical discussions. Most of the
academicians have no skin in the game but to come up with complex and
often non-applicable theories that fail in real world. In academics
there is no difference between academics and real world. In real
world there is.
The concept of the book
and its essays are beautifully summarized by authors own words. No
muscle without strength, no friendship without trust, no opinion
without consequences, no change with aesthetics, no age without
values, no life without effort, no water without thirst, no food
without nourishment, no love without sacrifice, no power without
fairness, no facts without rigor, no statistics without logic, no
math without proof, no teaching without experience, no politeness
without warmth, no values without embodiment, no degrees without
erudition, no militarism without fortitude, no progress without
civilization, no virtue without risk, no probability without
ergodicity, no wealth without exposure, no complication without
depth, no fluency without content, no decision without asymmetry, no
science without skepticism, no religion without tolerance and most
of all NOTHING WITHOUT SKIN IN THE GAME.
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