Friday, July 27, 2012

Ludic Fallacy...

 ...is a term coined by Nassim Nicholas Taleb in his 2007 book The Black Swan. "Ludic" is from the Latin ludus, meaning "play, game, sport, pastime." It is summarized as "the misuse of games to model real-life situations.

Taleb's argument centers on the idea that predictive models are based on platonified forms, gravitating towards mathematical purity and failing to take some key ideas into account:
  • it is impossible to be in possession of all the information.
  • very small unknown variations in the data could have a huge impact.
  • theories/models based on empirical data are flawed, as events that have not taken place before cannot be accounted for.

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