Derek Saville's intuitive response to the 2008 Iceland financial collapse—that Iceland is smaller than Fresno and therefore can't matter to the global financial system—was wrong because it failed to use the appropriate model (network of interconnected financial obligations) and instead used a simple supply-and-demand model, illustrating how model selection matters enormously.

factualpending

Speaker

Scott Page

Evidence Quote

Iceland is smaller than Fresno go back to work... that's his experience it it's a tiny country it's not gonna matter [12:26]

Source

Mental Models for complexity | Scott Page and Shane Parrish | The Knowledge Project #55The Knowledge Project Podcast
Created: 8/10/2026, 11:30:19 PM

My Notes

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