Anthropic Bias (Self-Sampling Assumption)
Taleb’s anthropic-bias argument concerns the selection effect in reasoning from our own survival. We can observe only histories that allowed us to exist. Our presence therefore cannot, by itself, show that survival was likely or that our successes required exceptional skill.
THE IDEA
I AM A BLACK SWAN: THE ANTHROPIC BIAS
I want to stay closer to earth and avoid bringing higher-up metaphysical or cosmological arguments into this discussion—there are so many significant dangers to worry about down here on planet earth and it would be a good idea to postpone the metaphysical philosophizing for later. But it would be useful to take a peek (not more) at what is called the anthropic cosmological argument, as it points out the gravity of our misunderstanding of historical stability.
Philosophers and physicists (and people combining the two categories) have been examining the self-sampling assumption, which generalizes the Casanova bias—judging dangerous adventures from the accounts of those who survived them—to our own existence.
Consider our own fates. Some people reason that the odds of any of us being in existence are so low that our being here cannot be attributed to an accident of fate. Think of the odds of the parameters being exactly where they need to be to induce our existence (any deviation from the optimal calibration would have made our world explode, collapse, or simply not come into existence). It is often said that the world seems to have been built to the specifications that would make our existence possible. According to such an argument, it could not come from luck.
However, our presence in the sample completely vitiates the computation of the odds. Again, the story of Casanova can make the point quite simple—much simpler than in its usual formulation. Think again of all the possible worlds as little Casanovas following their own fates. The one who is still kicking (by accident) will feel that, given that he cannot be so lucky, there had to be some transcendental force guiding him and supervising his destiny: “Hey, otherwise the odds would be too low to get here just by luck.” For someone who observes all adventurers, the odds of finding a Casanova are not low at all: there are so many adventurers, and someone is bound to win the lottery ticket.
The problem here with the universe and the human race is that we are the surviving Casanovas. When you start with many adventurous Casanovas, there is bound to be a survivor, and guess what: if you are here talking about it, you are likely to be that particular one (notice the “condition”: you survived to talk about it). So we can no longer naïvely compute odds without considering that the condition that we are in existence imposes restrictions on the process that led us here.
Assume that history delivers either “bleak” (i.e., unfavorable) or “rosy” (i.e., favorable) scenarios. The bleak scenarios lead to extinction. Clearly, if I am now writing these lines, it is certainly because history delivered a “rosy” scenario, one that allowed me to be here, a historical route in which my forebears avoided massacre by the many invaders who roamed the Levant. Add to that beneficial scenarios free of meteorite collisions, nuclear war, and other large-scale terminal epidemics. But I do not have to look at humanity as a whole. Whenever I probe into my own biography I am alarmed at how tenuous my life has been so far. Once when I returned to Lebanon during the war, at the age of eighteen, I felt episodes of extraordinary fatigue and cold chills in spite of the summer heat. It was typhoid fever. Had it not been for the discovery of antibiotics, only a few decades earlier, I would not be here today. I was also later “cured” of another severe disease that would have left me for dead, thanks to a treatment that depends on another recent medical technology. As a human being alive here in the age of the Internet, capable of writing and reaching an audience, I have also benefited from society’s luck and the remarkable absence of recent large-scale war. In addition, I am the result of the rise of the human race, itself an accidental event.
My being here is a consequential low-probability occurrence, and I tend to forget it.
Let us return to the touted recipes for becoming a millionaire in ten steps. A successful person will try to convince you that his achievements could not possibly be accidental, just as a gambler who wins at roulette seven times in a row will explain to you that the odds against such a streak are one in several million, so you either have to believe some transcendental intervention is in play or accept his skills and insight in picking the winning numbers. But if you take into account the quantity of gamblers out there, and the number of gambling sessions (several million episodes in total), then it becomes obvious that such strokes of luck are bound to happen. And if you are talking about them, they have happened to you.
The reference point argument is as follows: do not compute odds from the vantage point of the winning gambler (or the lucky Casanova, or the endlessly bouncing back New York City, or the invincible Carthage), but from all those who started in the cohort. Consider once again the example of the gambler. If you look at the population of beginning gamblers taken as a whole, you can be close to certain that one of them (but you do not know in advance which one) will show stellar results just by luck. So, from the reference point of the beginning cohort, this is not a big deal. But from the reference point of the winner (and, who does not, and this is key, take the losers into account), a long string of wins will appear to be too extraordinary an occurrence to be explained by luck. Note that a “history” is just a series of numbers through time. The numbers can represent degrees of wealth, fitness, weight, anything.
When to use it
When analyzing the success factors of startups, remember that many similar ideas failed and we only see the survivors.
When evaluating investment strategies, account for survivorship bias by looking at the entire cohort of investors.
When reasoning about the probability of human existence in the universe, consider that we are observing from a sample that is conditioned on our existence.
When interpreting personal achievements, recognize the role of luck and the many opportunities that did not pan out.
FROM THEORY TO EVERYDAY LIFE
In practice
Casanova's Survival
Imagine many Casanovas pursuing dangerous adventures. A survivor might think he is protected by fate. Yet with enough adventurers, a survivor can arise by chance; his presence does not show that the adventures were safe.
Gambler's Winning Streak
A gambler who wins seven times in a row may attribute the streak to skill. Across thousands of gamblers and repeated sessions, however, an unusual streak becomes less surprising. The full number of opportunities matters, and a large pool makes a streak more likely without guaranteeing one.
Personal Survival
The author reflects on surviving typhoid fever and other diseases due to modern medicine, which might seem like low probability, but we are only here because of those favorable conditions.
A MOMENT TO REFLECT
Put it to work.
How might the anthropic bias affect our interpretation of historical events and the success of civilizations?
In what ways do we overestimate the role of personal skill in our own successes, ignoring the many who tried and failed?
How can we correct for the anthropic bias when evaluating probabilities in our daily decisions?
Often confused with
CONTINUE THE CONVERSATION
Source texts
- The Black Swan The Impact of the Highly Improbable With a new section On Robustness and Fragility (Nassim Nicholas Taleb)