4. Epsilon-Delta thinking 🔗

August 30, 2016
In which I push back on Peter Thiel's "zero to one" framing by proposing epsilon-delta thinking — the calculus of small, continuous changes — as a richer model for navigating innovation and uncertainty than the discrete coin-flip logic of statistics.
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The true antithesis of 0 to 1 is not 1 to n; that's a strawman. The true antithesis is ε to δ: the evolutionary adjacent possible...
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Ironically 0 to 1 (understood as coin toss) is conceptual atom of statistics/indeterminacy, ε/δ is conceptual atom of calculus/determinacy
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Contra Thiel, the key distinction between stats/calculus is not indeterminate/determinate, but discrete/continuous blakemasters.com/post/234357439…
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Stats is intuitive in discrete (dice, coins, balls in urns), unintuitive in continuous. Calculus is opposite. This has deep effects.
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Calculus being more natural on continuum means discrete realities feel like approximations. You try to go more fine-grained for better truth
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Calculus is more fundamentally indeterminate view of the world: zoom in enuf (and you can do so infinitely in continuous), more bits appear
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Stats on the other hand, leads naturally to determinacy through finiteness. Like discrete set of futures with countable branching structure
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Of course, at limit, this gets to philosophical imponderables like quantum scale, or digital vs. regular physics.
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You get misled when you cherry pick example like predictability of space orbits as "proof" of precise predictability of calculus world.
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Try Navier-Stokes equations (also calculus!) for predicting turbulent fluid flow. Opposite of predictable.
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Equally, stats can lead to highly predictable results, as in dominant game theoretic strategies over long iteration horizons.
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Not nerd-quibbling with Thiel's model for no good reason. This has serious implications for mental models on the Thiel 2x2.
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The motivation for that 2x2 is to talk about luck and success as constructed by society, but the account is simplistic.
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ε/δ thinking gets at a more fundamental question: when do small changes lead to small effects, versus huge, rapid, snowball effects?
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