OPEN DISCUSSION: Back to skin in the game.

It looks like skin in the game does not necessarily work because it makes people more careful, rather but because it allows the risk taker to exit the gene pool and stop transferring the risk to others. A bad driver exposed to harm would eventually die and stop killing people on the road; shielded from harm he would keep killing others ad infinitum, as if he were an economist a la JS or PK.

Let us discuss: is skin-in-the-game largely a selection mechanism, or is it a behavioral modifier, or both, and in what proportion?

Thanks, friends.

[Please feel uninhibited but stay rigorous, and observe rules meant to prevent the discussion from moving away from the core point. This site has been working very, very, very well because trolls have had zero second option.]

via OPEN DISCUSSION: Back to skin in the… – Nassim Nicholas Taleb | Facebook.