4th Quadrant

My favorite ex-quant, N. N. Taleb, outlines the 4th Quadrant.
Thoroughly enjoyable, but I’m a fan.

This table made sense to me:

In information risk management, what sort of events are fat tailed with complex payoff? Or which are not?
I’ve suspected that there is a parallel between software and markets, as both proxy human behavior, yet are percieved as acting autonomously.

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1 Response to 4th Quadrant

  1. Unknown's avatar Anonymous says:

    My problems with Taleb aside, I did think it was interesting that he seems to leave security and op. risk out of the 4th quadrant.

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