Taleb and others spread this idea that "skin in the game" is some kind of magical anecdote to faulty thinking, incomplete risk analysis, incorrect application of heuristics, and other things. That just doesn't seem true. Lots of people do risky things every day based on social proof, or familiarity, or commitment, or scarcity, or many of the other risk-perception-altering heuristics that govern our lives. We do it when we drive, when we drink, when we ski, and in all kinds of other occasions. "Skin in the game" seems like an extremely faulty heuristic in its own way, with little evidence to support a strong assurance effect.
Conversely, I know lots of people who take risks themselves who'd never recommend the same risks to others (especially outdoor and motor sports enthusiasts). That's the opposite of Taleb's hypothesis.
Taleb and others spread this idea that "skin in the game" is some kind of magical anecdote to faulty thinking, incomplete risk analysis, incorrect application of heuristics, and other things. That just doesn't seem true. Lots of people do risky things every day based on social proof, or familiarity, or commitment, or scarcity, or many of the other risk-perception-altering heuristics that govern our lives. We do it when we drive, when we drink, when we ski, and in all kinds of other occasions. "Skin in the game" seems like an extremely faulty heuristic in its own way, with little evidence to support a strong assurance effect.
Conversely, I know lots of people who take risks themselves who'd never recommend the same risks to others (especially outdoor and motor sports enthusiasts). That's the opposite of Taleb's hypothesis.