Third-Order Consequences
This is where things start getting really wild. Unshackled by the office’s location, people will move where they want to move, often out of expensive cities and into more affordable towns with better weather. Those are first-and second-order effects. Some third-order effect might be that because they’re saving more money, they have more money to invest, and the trends that I wrote about in Software is Eating the Markets towards more retail investment in stocks, art, real estate, and more will accelerate.Other potential third-order effects include:
Rise of Alternative Education. As mobility increases, more people will need to give online or alternative education a real shot, because they’ll be loath to gain freedom from the office but remain tied down by their childrens’ schools. Homeschooling options like SchoolHouse, which matches groups of families with teachers to form microschools, Primer, an online homeschooling community and infrastructure startup, or Outschool, which lets kids take online classes or camps from anywhere, will appeal to parents who want to move while keeping their kids well-educated.
More Fluid Employment. Productive employees may work multiple full-time roles. In GitLab’s fourth phase, Intentionality, employees are measured on output. If employees can keep up the output, employers will be comfortable letting them work multiple jobs. The absolute star performers, who Dror calls “The 10x Class,” will put their talents up for a global auction, and will reach income levels similar to top athletes and celebrities.
New Employee Stock Options. As companies and employees enjoy a more transitory relationship, and as Remote leads to more precise performance tracking, equity will have to evolve to be rewarded for performance and contribution instead of tenure and rank. As Sari and I wrote, we think that Fairmint is in a great position to make this possible technically. Remote will make it acceptable culturally.
Tag: analysis
Legibility
the idea to change a complex system to make it “easy” to understand, like straightening rivers or removing underbrush from forests, with predictably bad results.
Organizational Metaphors
NOBL Academy
Machine: an organization is a series of connected parts arranged in a logical order in order to produce a repeatable output
Organism: an organization is a collective response to its environment and, to survive, must adapt as the environment changes
Brain: an organization is a set of functions designed to process information and learn over time
Cultural System: an organization is a mini-society, with its own culture and subcultures defined by their values, norms, beliefs, and rituals
Political System: an organization is a game of gaining, influencing, and coordinating power
Psychic Prison: an organization is a collection of myths and stories that restrict people’s thoughts, ideas, and actions
Instrument of Domination: an organization is a means to impose one’s will on others and exploit resources for personal gains
Flux and Transformation: an organization is an ever-changing system indivisible from its environment
100 Little Ideas
A list of ideas, in no particular order and from different fields, that help explain how the world works.
- Depressive Realism
- Skill Compensation
- Curse of Knowledge
- Base Rates
- Base-Rate Neglect
- Compassion Fade
- System Justification Theory
- 3 Men Make a Tiger
- Burdian’s Ass
- Pareto Principle
- Sturgeon’s Law
- The Matthew Effect
- Impostor Syndrome
- Anscombe’s Quartet
- Ringelmann Effect
- Semmelweis Reflex
- False-Consensus Effect
- Boomerang Effect
- Chronological Snobbery
- Outgroup Homogeneity
- Planck’s Principle
- McNamara Fallacy
- Courtesy Bias
- Berkson’s Paradox
- Group Attribution Error
- Baader-Meinhof Phenomenon
- Ludic Fallacy
- Normalcy Bias
- Actor-Observer Asymmetry
- The 90-9-1 Rule
- Texas Sharpshooter Fallacy
- Fredkin’s Paradox
- Poisoning the Well
- Golem Effect
- Appeal to Consequences
- Plain Folks Fallacy
- Behavioral Inevitability
- Apophenia
- Self-Handicapping
- Hanlon’s Razor
- False Uniqueness Effect
- Hard-Easy Effect
- Neglect of Probability
- Cobra Effect
- Braess’s Paradox
- Non-Ergodic
- Pollyanna Principle
- Declinism
- Empathy Gap
- Abilene Paradox
- Collective Narcissism
- Moral Luck
- Feedback Loops
- Hawthorne Effect
- Perfect Solution Fallacy
- Weasel Words
- Hormesis
- Backfiring Effect
- Reflexivity
- Second Half of the Chessboard
- Peter Principle
- Friendship Paradox
- Hedonic Treadmill
- Positive Illusions
- Ironic Process Theory
- Clustering Illusions
- Foundational Species
- Bizarreness Effect
- Nonlinearity
- Moderating Relationship
- Denomination Effect
- Woozle Effect
- Google Scholar Effect
- Inversion
- Gambler’s Ruin
- Principle of Least Effort
- Dunning-Kruger Effect
- Knightian Uncertainty
- Aumann’s Agreement Theorem
- Focusing Effect
- The Middle Ground Fallacy
- Rebound Effect
- Ostrich Effect
- Founder’s Syndrome
- In-Group Favoritism
- Bounded Rationality
- Luxury Paradox
- Meat Paradox
- Fluency Heuristic
- Historical Wisdom
- Fact-Check Scarcity Principle
- Emotional Contagion
- Tribal Affiliation
- Emotional Competence
Idea Adoption Curve
ideas are also on an adoption curve. This is why NYT, Vox etc are fundamentally uncompelling, since they sit too late in the cycle.
Pandemic futures

a very wide range of outcomes.
TikTok and the Sorting Hat
TikTok doesn’t bump into the negative network effects of using a social graphs at scale because it doesn’t really have one. It is more of a pure interest graph, one derived from its short video content, and the beauty is its algorithm is so efficient that it its interest graph can be assembled without imposing much of a burden on the user at all. It is passive personalization, learning through consumption. Because the videos are so short, the volume of training data a user provides per unit of time is high. Because the videos are entertaining, this training process feels effortless, even enjoyable, for the user.
the reason tiktok has taken off is because it’s recommendation algorithm is really good, and it doesn’t need a social graph to thrive.
COVID-19 winners/losers
a good framework for thinking about winners / losers post COVID-19, with a focus on which services scale worldwide vs stay at the 1:1 scale, with opportunities on both ends.
Solving online events
It’s often struck me that networking events are pretty inefficient and random. If you’re going to spend 1 hour or 2 in a room with 50 or 500 people, then you could take that as a purely social occasion and enjoy yourself. But if your purpose is to have professionally useful conversations, then what proportion of the people in the room can you talk to in 1 hour and how likely is it that they’ll be the right ones? Who’s there? I sometimes suggest it would be helpful if we all wore banners, as in the image at the top, so that you could look across the room and see who to talk to. (First Tuesday did something like this in 1999, with different colored badges.)
This might just be that I’m an introvert asking for a machine to manage human connections for me (and I am), but there is also clearly an opportunity to scale the networking that happens around events in ways that don’t rely on random chance and alcohol tolerance. A long time ago Twitter took some of that role, and the explosion of online dating also shows how changing the way you think about pools and sample sets changes outcomes. In 2017, 40% of new relationships in the USA started online. Next, before lockdown, you would often have planned to schedule a non-urgent meeting with a partner or client or connection ‘when we’re in the same city’. That might be at some specific event, but it might also just be for some ad hoc trip – ‘next time I’m in the Bay Area’ or ‘next time you’re in New York’. In January most people would never actually have thought of making that a video call, but today every meeting is a video call, so all of those meetings can be a video call too, and can happen this week rather than ‘next time I fly to that city’ – or ‘at CES/NAB/MIPCOM’. In the last few months video calls have broken through that habit. I wonder what happens if we accelerate all of those meetings in that way.
On the unbundling of events, and how networking might be done better.
On GPT-3
GPT-3 is scary because it’s a tiny model compared to what’s possible, with a simple uniform architecture trained in the dumbest way possible (prediction of next text token) on a single impoverished modality (random Internet text dumps) on tiny data (fits on a laptop), and yet, the first version already manifests crazy runtime meta-learning—and the scaling curves still are not bending! The samples are also better than ever, whether it’s GPT-3 inventing new dick jokes or writing (mostly working) JavaScript tutorials about rotating arrays. Does it set SOTA on every task? No, of course not. But the question is not whether we can lawyerly find any way in which it might not work, but whether there is any way which it might work.
