The Cosmetic Rises to the Surface
Humans are naturally drawn to the tangible, visible, and concrete while ignoring the abstract and unseen, leading to cognitive biases like confirmation bias and neglect of silent evidence. This results in a superficial understanding of uncertainty and randomness.
THE IDEA
The Cosmetic Rises to the Surface
All of the topics in Part One are actually only one. You can think about a subject for a long time, to the point of being possessed by it. Somehow you have a lot of ideas, but they do not seem explicitly connected; the logic linking them remains concealed from you. Yet you know deep down that all these are the same idea. Meanwhile, what Nietzsche calls bildungsphilisters,* or learned philistines, blue collars of the thinking business, tell you that you are spread out between fields; you reply that these disciplines are artificial and arbitrary, to no avail. Then you tell them that you are a limousine driver, and they leave you alone—you feel better because you do not identify with them, and thus you no longer need to be amputated to fit into the Procrustean bed of the disciplines. Finally, a little push and you see that it was all one single problem.
One evening I found myself at a cocktail party in Munich at the apartment of a former art historian who had more art books in its library than I thought existed. I stood drinking excellent Riesling in the spontaneously formed English-speaking corner of the apartment, in the hope of getting to a state where I would be able to start speaking my brand of fake German. One of the most insightful thinkers I know, the computer entrepreneur Yossi Vardi, prompted me to summarize “my idea” while standing on one leg. It was not too convenient to stand on one leg after a few glasses of perfumed Riesling, so I failed in my improvisation. The next day I experienced staircase wit. I jumped out of bed with the following idea: the cosmetic and the Platonic rise naturally to the surface. This is a simple extension of the problem of knowledge. It is simply that one side of Eco’s library, the one we never see, has the property of being ignored. This is also the problem of silent evidence. It is why we do not see Black Swans: we worry about those that happened, not those that may happen but did not. It is why we Platonify, liking known schemas and well-organized knowledge—to the point of blindness to reality. It is why we fall for the problem of induction, why we confirm. It is why those who “study” and fare well in school have a tendency to be suckers for the ludic fallacy.
And it is why we have Black Swans and never learn from their occurrence, because the ones that did not happen were too abstract. Thanks to Vardi, I now belonged to the club of single-idea people.
We love the tangible, the confirmation, the palpable, the real, the visible, the concrete, the known, the seen, the vivid, the visual, the social, the embedded, the emotionally laden, the salient, the stereotypical, the moving, the theatrical, the romanced, the cosmetic, the official, the scholarly-sounding verbiage (b*******t), the pompous Gaussian economist, the mathematicized crap, the pomp, the Académie Française, Harvard Business School, the Nobel Prize, dark business suits with white shirts and Ferragamo ties, the moving discourse, and the lurid. Most of all we favor the narrated.
Alas, we are not manufactured, in our current edition of the human race, to understand abstract matters—we need context. Randomness and uncertainty are abstractions. We respect what has happened, ignoring what could have happened. In other words, we are naturally shallow and superficial—and we do not know it. This is not a psychological problem; it comes from the main property of information. The dark side of the moon is harder to see; beaming light on it costs energy. In the same way, beaming light on the unseen is costly in both computational and mental effort.
When to use it
In investment, evaluating portfolio risk by only considering historical returns (visible) while ignoring tail risk (unseen).
In scientific research, publishing only positive results (visible) while ignoring null results (hidden).
In management, promoting employees based on visible achievements while ignoring quiet contributions.
In personal life, making judgments based on vivid anecdotes rather than base rates.
FROM THEORY TO EVERYDAY LIFE
In practice
Managerial Performance Evaluation
A manager evaluates employee performance based on recent visible achievements (e.g., completed projects) while ignoring long-term contributions that are less salient, such as mentoring or behind-the-scenes work.
Investment Decisions
Investors focus on past stock performance (visible) and ignore the risks of rare events (unseen), such as market crashes, leading to overconfidence in portfolio stability.
A MOMENT TO REFLECT
Put it to work.
In what areas of your life do you tend to focus on visible results while ignoring what could have happened but didn't?
How does the bias towards the tangible affect your decision-making in uncertain situations?
Can you identify a recent decision where you overlooked abstract risks because they were not salient?
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)