Asymmetry

Inoculating Against the Anti-Vaccine Meme

The debate over vaccination is raging (c.f. Wired article) and it smacks of one of those conundrums that is unlikely to get resolved by scientific inquiry.  I offer the following hypothesis and a way out of the dilemma.

Hypothesis: Vaccination is something that is good at the societal level but bad at the individual level.  That is, it is a tragedy of the commons.  You want all your neighbors to get vaccinated so they don’t pass on the germs to you, but there is enough risk from the vaccination process (at least for certain ones) that you’d rather not do it yourself.

The mathematics of the commons tragedies suggests that there are two ways out.   One is to change the payout/incentive structure, in other words, make the vaccine’s less risky to the individual, or at least change the perception of the individual risk (as the Wired article suggests).  The problem with manipulating perception is, what if you’re wrong?  The marketplace of ideas …

Robin Hood Foreclosure Fund

Have you ever heard of anyone selflessly helping out a stranger by buying their house at a bank foreclosure auction and just giving it back to them?  Well, now you have.

More likely, you’ve probably heard of private investors taking advantage of the banks’ unwillingness (or inability) to deal with all the bad loans on their books. Like the group of investors in Act 2 of this This American Life episode, you buy a house that’s in foreclosure for a significant discount on its true market value and then “you get the homeowner into either a mortgage they can afford, or they’re able to rent it, or you pay them a bit to move somewhere else.”

Well, what if there was a way to combine these two activities so that you are doing good for someone else while doing well for yourself financially?  There are many variants of how this could work, but here’s the basic concept:…

Newcomb's Meta-Paradox

Tweeter, Claus Metzner (@cmetzner) alerted me to this cool area of study with this paper.

Suppose you meet a Wise being (W) who tells you it has put $1,000 in box A, and either $1 million or nothing in box B. This being tells you to either take the contents of box B only, or to take the contents of both A and B. Suppose further that the being had put the $1 million in box B only if a prediction algorithm designed by the being had said that you would take only B. If the algorithm had predicted you would take both boxes, then the being put nothing in box B.  Presume that due to determinism, there exists a perfectly accurate prediction algorithm. Assuming W uses that algorithm, what choice should you make?…

Asymmetry Is the Root of All Value

It’s not hard these days to find vignettes like this one (starting at minute 1:45) that describe a microeconomic chain of events that give you a glimpse into the recessionary dynamic.  I think it’s a good starting point to explain my personal theory of why asymmetry is the root of all value (economic and otherwise).…