Probability cannot be understood in isolation from a payoff function—probability density is a kernel that must be multiplied by a payoff function g(x) and integrated, and talking about probability alone has no meaning; for binary forecasts g(x) is an indicator function, but g(x) can be any continuous, convex, or concave function.

definitionpending

Speaker

Nassim Nicholas Taleb

Evidence Quote

you should look at what you're doing with probability it's on by itself doesn't come alone so you're multiplying within an integral P of X with some function G of X yeah okay P of X by itself has no meaning yeah all right G of X all right has some meaning

Source

Nassim Taleb — Meditations on ExtremistanJoseph Noel Walker
Created: 8/11/2026, 7:44:21 AM

My Notes

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