If you’re so smart, why aren’t you rich? Turns out it’s just chance. - MIT Technology Review

50 bookmarks. First posted by randallr march 2018.

The distribution of wealth follows a well-known pattern sometimes called an 80:20 rule: 80 percent of the wealth is owned by 20 percent of the people. Indeed, a…
from instapaper
june 2018 by yudha87
But there is a problem with this idea: while wealth distribution follows a power law, the distribution of human skills generally follows a normal distribution that is symmetric about an average value. For example, intelligence, as measured by IQ tests, follows this pattern. Average IQ is 100, but nobody has an IQ of 1,000 or 10,000.
may 2018 by spectrevision
If you’re so smart, why aren’t you rich? Turns out it’s just chance.
may 2018 by kohlmannj
The team studied three models, in which research funding is distributed equally to all scientists; distributed randomly to a subset of scientists; or given preferentially to those who have been most successful in the past. Which of these is the best strategy? The strategy that delivers the best returns, it turns out, is to divide the funding equally among all researchers. And the second- and third-best strategies involve distributing it at random to 10 or 20 percent of scientists. In these cases, the researchers are best able to take advantage of the serendipitous discoveries they make from time to time. In hindsight, it is obvious that the fact a scientist has made an important chance discovery in the past does not mean he or she is more likely to make one in the future.
research  economics
march 2018 by elrob
The maximum success never coincides with the maximum talent, and vice-versa.
march 2018 by pcook
HELPS IF YOU'RE BORN RICH

"The distribution of wealth follows a well-known pattern sometimes called an 80:20 rule: 80 percent of the wealth is owned by 20 percent of the people. Indeed, a report last year concluded that just eight men had a total wealth equivalent to that of the world’s poorest 3.8 billion people."

UM, THAT AIN'T 80:20
MONEY
march 2018 by maoxian
The distribution of wealth follows a well-known pattern sometimes called an 80:20 rule: 80 percent of the wealth is owned by 20 percent of the people. Indeed, a report last year concluded that just eight men had a total wealth equivalent to that of the world’s poorest 3.8 billion people. via Pocket
Pocket
march 2018 by driptray
The most successful people are not the most talented, just the luckiest, a new computer model of wealth creation confirms. Taking that into account can maximize return on many kinds of investment.

The same is true of effort, as measured by hours worked. Some people work more hours than average and some work less, but nobody works a billion times more hours than anybody else.

And yet when it comes to the rewards for this work, some people do have billions of times more wealth than other people. What’s more, numerous studies have shown that the wealthiest people are generally not the most talented by other measures.
luck  wealth  economics  education
march 2018 by fallond
The team studied three models, in which research funding is distributed equally to all scientists; distributed randomly to a subset of scientists; or given preferentially to those who have been most successful in the past. Which of these is the best strategy?

The strategy that delivers the best returns, it turns out, is to divide the funding equally among all researchers. And the second- and third-best strategies involve distributing it at random to 10 or 20 percent of scientists.
fb
march 2018 by lorainell
When the team rank individuals by wealth, the distribution is exactly like that seen in real-world societies. “The ‘80-20’ rule is respected, since 80 percent of the population owns only 20 percent of the total capital, while the remaining 20 percent owns 80 percent of the same capital,” report Pluchino and co.

That may not be surprising or unfair if the wealthiest 20 percent turn out to be the most talented. But that isn’t what happens. The wealthiest individuals are typically not the most talented or anywhere near it. “The maximum success never coincides with the maximum talent, and vice-versa,” say the researchers.

So if not talent, what other factor causes this skewed wealth distribution? “Our simulation clearly shows that such a factor is just pure luck,” say Pluchino and co.
hunters
march 2018 by jaypcross
RT : The maximum success never coincides with the maximum talent, and vice-versa.
march 2018 by sevas
The most successful people are not the most talented, just the luckiest, a new computer model of wealth creation confirms. Taking that into account can maximize return on many kinds of investment.
articles  economics  inequality  wealth  luck
march 2018 by gmisra
The most successful people are not the most talented, just the luckiest, a new computer model of wealth creation confirms. Taking that into account can maximize return on many kinds of investment.
economics  luck  success  wealth
march 2018 by soobrosa
If you’re so smart, why aren’t you rich? Turns out it’s just chance.
march 2018 by jamescampbell
The distribution of wealth follows a well-known pattern sometimes called an 80:20 rule: 80 percent of the wealth is owned by 20 percent of the people. Indeed, a report last year concluded that just eight men had a total wealth equivalent to that of the world’s poorest 3.8 billion people. via Pocket
IFTTT  Pocket
march 2018 by arronpj
Interesting research on “Talent vs. Luck”: HT cc —Does this contradict ot…
march 2018 by oismail91
The most successful people are not the most talented, just the luckiest, a new computer model of wealth creation confirms.
economics  wealth  success  random  luck  myths  society  model
march 2018 by markhgn
The distribution of wealth follows a well-known pattern sometimes called an 80:20 rule: 80 percent of the wealth is owned by 20 percent of the people. Indeed, a report last year concluded that just eight men had a total wealth equivalent to that of the world’s poorest 3.8 billion people. via Pocket
IFTTT  Pocket
march 2018 by hansdorsch
The most successful people are not the most talented, just the luckiest, a new computer model of wealth creation confirms. Taking that into account can maximize return on many kinds of investment.
economics  statistics  science  research
march 2018 by deprecated
The distribution of wealth follows a well-known pattern sometimes called an 80:20 rule: 80 percent of the wealth is owned by 20 percent of the people. Indeed, a report last year concluded that just eight men had a total wealth equivalent to that of the world’s poorest 3.8 billion people.
Archive  smart  success  wealth
march 2018 by bruno
See also the book: “Success and Luck: Good Fortune and the Myth of Meritocracy” by Robert H. Frank
luck  success  society  economics  history  wealth  simulation
march 2018 by cwr
The distribution of wealth follows a well-known pattern sometimes called an 80:20 rule: 80 percent of the wealth is owned by 20 percent of the people. Indeed, a report last year concluded that just eight men had a total wealth equivalent to that of the world’s poorest 3.8 billion people.
march 2018 by marshallk
RT : The maximum success never coincides with the maximum talent, and vice-versa.
march 2018 by CamiloEL
The distribution of wealth follows a well-known pattern sometimes called an 80:20 rule: 80 percent of the wealth is owned by 20 percent of the people. Indeed, a…
from instapaper
march 2018 by spinnerin
If you’re so smart, why aren’t you rich? Turns out it’s just chance.