Wednesday, January 14, 2009

Mediocristan and Extremistan


In the utopian province of Mediocristan, particular events don't contribute much individually --- only collectively. I can state the supreme law of Mediocristan as follows: When your sample is large, no single instance will significantly change the aggregate or the total." - Travels Inside Mediocristan, pp.32

"In Extremistan, inequalities are such that one single observation can disproportionately impact the aggregate, or the total" - The Strange Country of Extremistan pp.33

Nassim Nicholas Taleb
THE BLACK SWAN
Chapter Three
The Speculator and The Prostitute

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