Skin in the Game: Hidden Asymmetries in Daily Life

Implementation Notes

• The principle of 'skin in the game' means that people should bear personal responsibility for their actions and decisions. This implies that decision-makers should be exposed to the same risks as those affected by their decisions.
• Do not trust experts who do not bear personal responsibility for their advice. If someone does not have skin in the game, their opinion may be biased and not account for real consequences.
• Avoid risk asymmetry, where one person gains the benefits of actions while another bears the risks. This can lead to unethical behavior and unfair outcomes.
• Strive to make decisions based on experience and intuition, not just theoretical models. Practical experience allows for better assessment of risks and consequences.
• In business and life, it is important to consider the long-term consequences of your actions. Short-term gains can turn into long-term losses if all risks are not accounted for.
• Be prepared for surprises and uncertainty. The world is full of randomness, and it is important to have a plan for unforeseen circumstances.
• Ethics and honesty should be the foundation of any action. Long-term success is only possible by adhering to moral principles and honesty in relationships with others.