Basketball & Ergodicity
This game will show you why redistribution is often a good idea even when you're better than the people you redistribute with.
Imagine playing the following game. You start with $100. Every round, you shoot a basketball; if you make the shot, you double your money, and if you fail, you halve it. Your chances of making the shot are 60%.
Your friend is also playing this game. However, he is worse than you, and only has a 50% chance of making the shot.
You have the option, after each round, to poll your money together with your friend and split it evenly. Would you take this option?
Let's find out what's the best strategy!
Play 10 rounds to see what happens over time.
Shots
| Round | Your Shot | Their Shot |
|---|
Without redistribution
| Round | Your Money | His Money |
|---|
With redistribution
| Round | Your Money | His Money |
|---|
Note: the results are randomly generated using the parameters above.
This game is part of my book Ergodicity.
Ergodicity
How irreversible outcomes affect long-term performance in work, investing, relationships, sport, and beyond
Some reviews
"One of the most important books I’ve read, period. It’s short, articulate, and expansive on a singular subject matter — ergodicity, which is really the key ingredient to success in life, marriage, business, family, happiness, health, etc."
Blake Janover
CEO, Janover Inc.
"One of the most important books for everyone to read. Ergodicity should be taught in school and it should be a common metric in businesses that leaders pay attention to and are deliberate about."
Matt Cannon
"A fascinating book […] Once I started, I couldn’t put it down […] the math is minimal, and Luca treats the subject well. I wish I had read it two years earlier"
Robert Matthews
VP of Engineering, Equifax
"Profoundly insightful [...] If you are someone who often needs to make decisions under uncertainty and using incomplete information (which I think applies to most of us), then Ergodicity is a must-read."
Dev Ashish
StableInvestor Founder
"Brilliant. Must read."
N. S. Ramnath
Journalist & Author
"A great book for those who quickly want to familiarize themselves with the concept of ergodicity. The author goes to great lengths explaining the concept in easily understandable terms. Highly recommended!"
Auke Hunneman
BI Norwegian Business School