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Taleb's Black-Swan: interpretation of the exponent

I finally got the idea behind the example. To illustrate it in a more general setting I will present a rigorous proof: Let $x_k$ denote the salary and $b_k$ the number of persons that earn $x_k$ or mo …
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Taleb's Black-Swan: interpretation of the exponent

In chapter 16 "The Aesthetics of Randomness" he describes the meaning of the exponent in the context of extrapolation. …