{"id":33,"date":"2009-06-03T13:13:05","date_gmt":"2009-06-03T20:13:05","guid":{"rendered":""},"modified":"2011-06-16T12:31:49","modified_gmt":"2011-06-16T19:31:49","slug":"ssrn-too-big-to-fail-hidden-risks-and-the-fallacy-of-large-institutions-by-nassim-taleb","status":"publish","type":"post","link":"https:\/\/www.blackswanreport.com\/blog\/2009\/06\/ssrn-too-big-to-fail-hidden-risks-and-the-fallacy-of-large-institutions-by-nassim-taleb\/","title":{"rendered":"SSRN-Too Big to Fail, Hidden Risks, and the Fallacy of Large Institutions by Nassim Taleb"},"content":{"rendered":"<blockquote><p>Shared by  Woolwit<br \/>\n<br \/>\nPDF available for download at link location.<\/p><\/blockquote>\n<div>Too Big to Fail, Hidden Risks, and the Fallacy of Large Institutions<\/div>\n<p><center><font face=\"Myriad Roman, Arial, Helvetica, Sans-serif;\" size=\"2\"><br \/><a href=\"http:\/\/papers.ssrn.com\/sol3\/cf_dev\/AbsByAuth.cfm?per_id=475810\" style=\"font-size:14px;font-weight:bold\" title=\"View other papers by this author\">Nassim Nicholas Taleb <\/a><br \/>NYU-Poly Institute; London Business School<br \/><\/font><\/p>\n<p><font face=\"Myriad Roman, Arial, Helvetica, Sans-serif;\" size=\"2\">May 2, 2009<\/font><\/p>\n<p><\/center><br \/><strong><font face=\"Myriad Roman, Arial, Helvetica, Sans-serif;\" size=\"2\">Abstract: <\/font><\/strong>\u00a0\u00a0\u00a0\u00a0<br \/><font face=\"Myriad Roman, Arial, Helvetica, Sans-serif;\" size=\"2\">Large institutions are disproportionately more fragile to Black Swans.<br \/>This paper establishes the case for a fallacy of economies of scale in large aggregate institutions.  The problem of rogue trading is taken as a case example of hidden risks where rogue traders and losses are considered independently and dependently of the institution\u2019s size.  Both independent and dependent loss and hidden positions are shown to lead to the paper\u2019s conclusion, that size and economies of scale have commensurate risks that mitigate the advantages of size.<\/font><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Shared by  Woolwit <\/p>\n<p>PDF available for download at link location.<br \/>\nToo Big to Fail, Hidden Risks, and the Fallacy of Large InstitutionsNassim Nicholas Taleb NYU-Poly Institute; London Business SchoolMay 2, 2009Abstract: \u00a0\u00a0\u00a0\u00a0Large institutions are di&#8230;<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,445,73],"tags":[],"class_list":["post-33","post","type-post","status-publish","format-standard","hentry","category-feeds","category-papers","category-pdf"],"_links":{"self":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts\/33","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/comments?post=33"}],"version-history":[{"count":2,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts\/33\/revisions"}],"predecessor-version":[{"id":3664,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/posts\/33\/revisions\/3664"}],"wp:attachment":[{"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/media?parent=33"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/categories?post=33"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.blackswanreport.com\/blog\/wp-json\/wp\/v2\/tags?post=33"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}