| Good to reference Black Swan, but Taleb would call these events gray swans, not black swans. A true black swan is something that's basically inconceivable before it occurs. It is outside the mental model used to evaluate outcome probabilities. Black swan events include things like: ---Your enemy in a war invents the nuclear bomb and drops it on your cities (this happened to Japan in 1945) ---You are a turkey. The farmer comes, as he does every day. Instead of feeding you, he slaughters you (something which you've got no experience or conception of). ---It's 1994 and you own Blockbuster Video, a solid earning company. Then someone invents the Internet... Biological warfare attacks are quite well-known as a concept, making them gray swans. Also in the gray swan category are asteroid strikes, supervolcanoes, etc etc. I try to spread this distinction because if we start calling gray swans black swans, that will hide from us the most important part of Taleb's argument, which is that true black swans are the most important events. The idea of the black swan is hard to keep in your mind (how do you keep in mind the inconceivable?) so it's very easy for a pretender concept to sneak in and steal the label. |