- Title: Skin in the Game – Hidden Asymmetries in Daily Life
- Author: Nassim N. Taleb
- Publication Date: 2018
- Recommendation Score: 5 / 5
Nassim Taleb is a non-conventional thinker. He is a mathematician and cares a lot about rigor and logic. He is a philosopher and cares about the consequences of theory on people’s life. This is reflected in his writings when theory (science) and practice (real life) are intertwined.
“Skin in the Game” is the 5th book in Nassim Taleb’s Incerto series. It deals with asymmetries in daily life (decision-making, risk management, politics, religion, etc.). This post summarizes some of the ideas of the book.
Ethics and Competence
In the introduction, the author focuses on the idea that one cannot disentangle ethics and competence when dealing with human beings. What does it mean that you trust a professional? Do you trust their knowledge and skills? Or their ethics and moral values? Or both?
Some people have skin in the game, such as citizens, merchants, businessmen, entrepreneurs, artisans, etc. Others have no skin in the game such as bureaucrats, administrators, policy wonks, consultants, etc.
No-skin-in-the-game people keep the upside and transfer the downside to others. Skin-in-the-game people, on the other hand, take their own risk and keep their own downside.
Avoid taking advice from someone who gives advice for a living, unless there is a penalty for their advice.
The golden rule vs the silver rule
The golden rule is: Treat others the way you would like them to treat you. The author argues that the following silver rule is more robust: Do not treat others the way you would not like them to treat you.
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