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Digital Canary 💪💪🇨🇦🇺🇦🗽's avatar

Great follow up, Matt, and glad I could spur this further.

FWIW, I don’t use Hari Seldon as a derogatory comparison, but as an expositive one:

When I took Stat Mech way way back, my very first thought after deriving Boyle’s Law from a few simple axioms around elastic scattering of individual constituents was that Asimov/Seldon had it wrong, but had the right idea of wanting to understand societal change as an *emergent property* of individual behaviours.

(Just as one refers to Navier-Stokes when modelling fluid flows, as accurately modelling individual molecules is is both practically impossible & also runs into Heisenberg’s uncertainty inequality)

So here is my real question, or two:

1. What makes you believe that your axioms are true?

2. Are individual humans as predictable as you require them to be when engaging with markets, or are you running into the same problem as economists with “rational actors”?

In effect, the key question for both top-down & bottom-up models is where do the models break down.

In Seldon’s case, Asimov used the periodic apparitions of AI Seldon to enable course correction; in a bottom-up case, at what point do the accumulating error bars result in meaningless noise?

Good luck to you, Matt; the better we model human behaviour, the more likely we are to come up with valuable insights into how to change that behaviour through incentives and disincentives. Just remember that we’re really complex, and that empiricism demands that you compare your model against past results as well as make new predictions to test 🙏

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