April 2012
10 posts
“The alarming thing is, the mistakes that produce these regrets are all errors of...”
Efficiency & Resilience
Modern economics is obsessed with efficiency. But an efficient system is antithetical to a resilient one. Perfect efficiency means zero waste, but any resources dedicated to disaster tolerance appears wasteful under normal circumstances.
Such is the case using antibiotics on livestock. You could of course dose every single animal you have. You could do this cheaply and it virtually eliminates...
Tail risk, a big scary non-finance example →
Loop hole 101
Say you’re Comcast and you’re not a fan of the net-neutrality rules passed in 2010. Say for some reason, you can carve out a chunk of your bandwidth and call it a “Private IP network” and it won’t be subject to the same net-neutrality rules that beleaguers the “Public internet”. So you do, and you use that private network to carry traffic for your...
