Barkley__Rosser comments on The Majority Is Always Wrong - Less Wrong

26 Post author: Eliezer_Yudkowsky 03 April 2007 01:12AM

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Comment author: Barkley__Rosser 03 April 2007 05:45:27PM 2 points [-]

I think the English measurement story is simply one of path dependence. It is entrenched, lots of people know it, and it would cost a lot in infrastructure and learning to switch, just like the QWERTY keyboard. OTOH, the English language has considerable nuance, given the many languages that go into it.

The Pareto distribution argument is in the right direction. Think of a skewed distribution versus a normal one. So, the mean of the normal one might be higher than that of the skewed one. On average it does better, and hence may be more popular. But the skewed one has this tail that does much better than the normal one a non-trivial amount of the time, so that risk lovers are attracted to it. This is not all that different from the argument about how noise traders survive in financial markets. Most go bankrupt, but those who actually did buy low and sell high do better than anybody else in the market and definitely survive.