I first heard the term ergodicity in Nassim Taleb’s writing. I first learned of ergodicity economics from this article about its history. Definition from wikipedia: “Ergodicity economics is a school of thought that questions whether expected value is a reliable […]
He thinks its worthless for various reasons. “If any non-dividend yielding asset has the tiniest constant probability of hitting an absorbing barrier (causing its value to become 0), then its present value must be 0.” | learn more
Popularized by Nassim Taleb, the thing to know about ergodicity is that the average outcome of the group is rarely the same as the average outcome of the individual over time. This article is a great way to digest Taleb’s […]
The term was popularized by Nassim Taleb and in this post Farnam Street explains the concept well. “Iatrogenics is when we cause more harm by intervention than we do good.” | learn more