Wednesday, July 31, 2013

Speaking of Leakers...

Nice explication of the Ellsberg paradox with a simple card gambit from Presh Talwalkar. I like the way this little problem interweaves risk (or ambiguity) aversion, uncertainty, and probability all together in one presentation, and doesn't require any deep math to comprehend:

(p.s., this paradox indeed comes from Daniel Ellsberg, who before his fame as the 'Pentagon Papers' leaker, was an economic theorist specializing in decision theory)

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