Abstract

http://ssrn.com/abstract=1490769
 


 



Common Errors in the Interpretation of the Ideas of The Black Swan and Associated Papers


Nassim Nicholas Taleb


NYU-Tandon School of Engineering; New England Complex Systems Institute

October 18, 2009


Abstract:     
The point of The Black Swan is that both empirical knowledge (i.e. extrapolating statistics) and a priori theories fail in the tails and it is vital to "robustify" against it using the concepts of "the fourth quadrant". The point has been garbled by members of the economics establishment that claim mistakenly "we know that" and "we know about fat tails" or "power laws". This is both wrong and not my point. The paper presents corrections to the misperceptions.

Keywords: Black Swan, Risk Management, Finance, Markets

JEL Classification: D8, G11, G12, G13, N


Not Available For Download

Date posted: October 21, 2009  

Suggested Citation

Taleb, Nassim Nicholas, Common Errors in the Interpretation of the Ideas of The Black Swan and Associated Papers (October 18, 2009). Available at SSRN: http://ssrn.com/abstract=1490769 or http://dx.doi.org/10.2139/ssrn.1490769

Contact Information

Nassim Nicholas Taleb (Contact Author)
NYU-Tandon School of Engineering ( email )
Bobst Library, E-resource Acquisitions
20 Cooper Square 3rd Floor
New York, NY 10003-711
United States
New England Complex Systems Institute ( email )
24 Mt. Auburn St.
Cambridge, MA 02138
United States
Feedback to SSRN


Paper statistics
Abstract Views: 20,451

© 2016 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollobot1 in 0.718 seconds