Against the Gods. Bernstein Peter L.
Чтение книги онлайн.

Читать онлайн книгу Against the Gods - Bernstein Peter L. страница 5

Название: Against the Gods

Автор: Bernstein Peter L.

Издательство: Автор

Жанр: Зарубежная образовательная литература

Серия:

isbn: 9780470534533

isbn:

СКАЧАТЬ nature of risk is shaped by the time horizon: the future is the playing field.

      Time matters most when decisions are irreversible. And yet many irreversible decisions must be made on the basis of incomplete information. Irreversibility dominates decisions ranging all the way from taking the subway instead of a taxi, to building an automobile factory in Brazil, to changing jobs, to declaring war.

      If we buy a stock today, we can always sell it tomorrow. But what do we do after the croupier at the roulette table cries, “No more bets!” or after a poker bet is doubled? There is no going back. Should we refrain from acting in the hope that the passage of time will make luck or the probabilities turn in our favor?

      Hamlet complained that too much hesitation in the face of uncertain outcomes is bad because “the native hue of resolution is sicklied o’er with the pale cast of thought.. and enterprises of great pith and moment.. lose the name of action.” Yet once we act, we forfeit the option of waiting until new information comes along. As a result, not-acting has value. The more uncertain the outcome, the greater may be the value of procrastination. Hamlet had it wrong: he who hesitates is halfway home.

      To explain the beginning of everything, Greek mythology drew on a giant game of craps to explain what modern scientists call the Big Bang. Three brothers rolled dice for the universe, with Zeus winning the heavens, Poseidon the seas, and Hades, the loser, going to hell as master of the underworld.

      Probability theory seems a subject made to order for the Greeks, given their zest for gambling, their skill as mathematicians, their mastery of logic, and their obsession with proof. Yet, though the most civilized of all the ancients, they never ventured into that fascinating world. Their failure to do so is astonishing because the Greeks had the only recorded civilization up to that point untrammeled by a dominating priesthood that claimed a monopoly on the lines of communication with the powers of mystery. Civilization as we know it might have progressed at a much faster pace if the Greeks had anticipated what their intellectual progeny – the men of the Renaissance – were to discover some thousand years later.

      Despite the emphasis that the Greeks placed on theory, they had little interest in applying it to any kind of technology that would have changed their views of the manageability of the future. When Archimedes invented the lever, he claimed that he could move the earth if only he could find a place to stand. But apparently he gave no thought to changing it. The daily life of the Greeks, and their standard of living, were much the same as the way that their forebears had subsisted for thousands of years. They hunted, fished, grew crops, bore children, and used architectural techniques that were only variations on themes developed much earlier in the Tigris-Euphrates valley and in Egypt.

      Genuflection before the winds was the only form of risk management that caught their attention: their poets and dramatists sing repeatedly of their dependence on the winds, and beloved children were sacrificed to appease the winds. Most important, the Greeks lacked a numbering system that would have enabled them to calculate instead of just recording the results of their activities.15

      I do not mean to suggest that the Greeks gave no thought to the nature of probability. The ancient Greek word εικος (eikos), which meant plausible or probable, had the same sense as the modern concept of probability: “to be expected with some degree of certainty.” Socrates defines εικος as “likeness to truth.”16

      Socrates’ definition reveals a subtle point of great importance. Likeness to truth is not the same thing as truth. Truth to the Greeks was only what could be proved by logic and axioms. Their insistence on proof set truth in direct contrast to empirical experimentation. For example, in Phaedo, Simmias points out to Socrates that “the proposition that the soul is in harmony has not been demonstrated at all but rests only on probability.” Aristotle complains about philosophers who, “.. while they speak plausibly… do not speak what is true.” Elsewhere, Socrates anticipates Aristotle when he declares that a “mathematician who argues from probabilities in geometry is not worth an ace.”17 For another thousand years, thinking about games and playing them remained separate activities.

      Shmuel Sambursky, a distinguished Israeli historian and philosopher of science, provides the only convincing thesis I could find to explain why the Greeks failed to take the strategic step of developing a quantitative approach to probability.18 With their sharp distinction between truth and probability, Sambursky contends in a paper written in 1956, the Greeks could not conceive of any kind of solid structure or harmony in the messy nature of day-to-day existence. Although Aristotle suggested that people should make decisions on the basis of “desire and reasoning directed to some end,” he offered no guidance to the likelihood of a successful outcome. Greek dramas tell tale after tale of the helplessness of human beings in the grasp of impersonal fates. When the Greeks wanted a prediction of what tomorrow might bring, they turned to the oracles instead of consulting their wisest philosophers.

      The Greeks believed that order is to be found only in the skies, where the planets and stars regularly appear in their appointed places with an unmatched regularity. To this harmonious performance, the Greeks paid deep respect, and their mathematicians studied it intensely. But the perfection of the heavens served only to highlight the disarray of life on earth. Moreover, the predictability of the firmament contrasted sharply with the behavior of the fickle, foolish gods who dwelt on high.

      The old Talmudic Jewish philosophers may have come a bit closer to quantifying risk. But here, too, we find no indication that they followed up on their reasoning by developing a methodical approach to risk. Sambursky cites a passage in the Talmud, Kethuboth 9q, where the philosopher explains that a man may divorce his wife for adultery without any penalty, but not if he claims that the adultery occurred before marriage.19

      “It is a double doubt,” declares the Talmud. If it is established (method unspecified) that the bride came to the marriage bed no longer a virgin, one side of the double doubt is whether the man responsible was the prospective groom himself – whether the event occurred “under him.. or not under him.” As to the second side of the doubt, the argument continues: “And if you say that it was under him, there is doubt whether it was by violence or by her free will.” Each side of the double doubt is given a 50–50 chance. With impressive statistical sophistication, the philosophers conclude that there is only one chance in four (1/2 × 1/2) that the woman committed adultery before marriage. Therefore, the husband cannot divorce her on those grounds.

      One is tempted to assume that the lapse of time between the invention of the astragalus and the invention of the laws of probability was nothing more than a historical accident. The Greeks and the Talmudic scholars were so maddeningly close to the analysis that Pascal and Fermat would undertake centuries later that only a slight push would have moved them on to the next step.

      That the push did not occur was not an accident. Before a society could incorporate the concept of risk into its culture, change would have to come, not in views of the present, but in attitudes about the future.

      Up to the time of the Renaissance, people perceived the future as little more than a matter of luck or the result of random variations, and most of their decisions were driven by instinct. When the conditions of life are so closely linked to nature, not much is left to human control. As long as the demands of survival limit people to the basic functions of bearing children, growing crops, hunting, fishing, and providing shelter, they are simply unable to conceive of circumstances in which they might be able to influence the outcomes of their decisions. A penny saved is not a penny earned unless the future is something more than СКАЧАТЬ



<p>15</p>

See David, p. 2.

<p>16</p>

Sambursky, 1956, p. 36.

<p>17</p>

Ibid., p. 37.

<p>18</p>

Ibid., pp. 36–40.

<p>19</p>

Rabinovitch, 1969.