Ergodicity by Luca Dellanna

Author:Luca Dellanna
Language: eng
Format: epub

Chapter 5.4

Summary of the second strategy,

skin in the game

We saw how:

- Skin in the game acts as an incentive and as a filter that removes dangerous individuals from the community and prevents dangerous behaviors from spreading.

- Sociality helps aligning incentives within a community and conserving precious variance. It makes one feel like he cannot act against his community and then “jump ships.”

Here are some practical applications:

- Be wary of advice from people without skin in the game. They might be incompetent or not have your best interest at heart.

- Be wary of envying people without skin in the game. Imitating them might expose you to problems you didn’t consider.

- Careful of removing social bonding from your life or organization in the name of efficiency: it has a purpose.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.