Thursday, 2 January 2014

A Black Swan ?



Will the 2014 national elections throw up a " Black Swan " event  ?


Nassim Taleb ( author of " Black Swan "  ) , describes a Black Swan event as follows :


>  It is an " OUTLIER ", as it lies outside the realm of regular expectations ,
    because nothing in the past can convincingly point to its possibility


>  It carries an " EXTREME  IMPACT "


>  In spite of its outlier status , human nature makes us concoct  
     " EXPLANATION " for its occurrence , after the fact , making it
     explainable and  PREDICTABLE

   

In brief ,


>   Rarity


>   Extreme Impact


>   Retrospective Predictability


According to Taleb ,


>   The highly expected  " not happening ",  is also a Black Swan


Example of Black Swan  ?


>  Kumar Vishwas ( AAP ) contesting Amethi Lok Sabha seat against Rahul
    Gandhi in 2014 - and defeating him  !


Here is why  :


>   Amethi Lok Sabha seat is kind of " Reserved " for the Gandhi Family for
     past many decades . To save face , no other political party fields any
    heavy-weight candidate from Amethi  (  RARITY  )



>   A Kumar Vishwas contesting Rahul Gandhi will encourage , hundreds
     of Aam Aadmi Davids to take on mighty Congress / BJP Goliaths , in
     their respective constituencies . All the Congress / BJP stalwarts lose
    their deposits ! ( EXTREME  IMPACT  )



>   What makes Kumar Vishwas victory over Rahul , so PREDICTABLE  ?


     Simple


     *  People don't want " more of the same " for another 5 years .
        ( viz : Dynasty Rule )


     *  People want a change


     *  People believe , AAP will eliminate corruption


     *  People think AAP will work for the benefit of the poor

     *  People have seen what AAP government delivered within 48 hours
         of assuming power in Delhi


     *  BJP / Congress leaders will neither read this blog nor read " Black
         Swan  " !


No doubt , experts debating election results on TV channels , in June 2014
( after the fact ) , will concoct many other " Explanations " to justify the
occurrence of this Black Swan  !




*   hemen   parekh   (  03  Jan  2014  /  Mumbai )

   

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