{"id":37083,"date":"2021-05-23T07:13:22","date_gmt":"2021-05-23T11:13:22","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=37083"},"modified":"2021-06-06T21:22:55","modified_gmt":"2021-06-07T01:22:55","slug":"optionality-meaning","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/optionality-meaning\/","title":{"rendered":"Optionality: Meaning and Why It Matters for Antifragility"},"content":{"rendered":"\n

What is the meaning of optionality? How does optionality work and how can it improve choices and outcomes? <\/p>\n\n\n\n

A key aspect of antifragility is having a variety of choices available. Having many options maximizes your chances of achieving success in most situations, whether it’s political, economic, or another type of system. <\/p>\n\n\n\n


Read more about optionality, its meaning, and how it relates to antifragility. <\/p>\n\n\n\n\n\n\n\n

Rationality and Optionality Meaning<\/strong><\/h2>\n\n\n\n

As stated in the previous chapter, optionality\u2014meaning having a variety of choices available\u2014is one key aspect of antifragility. An anecdote in Aristotle\u2019s Politics<\/em> shows this, although, oddly, Aristotle seems to have gotten exactly the wrong point from his own story. <\/p>\n\n\n\n

The philosopher Thales of Miletus was known to be poor and unconcerned with money. However, those around him suspected that the reason for his apparent lack of interest in money was that he simply didn\u2019t have the skill or intelligence to make any. Thales decided to prove them wrong.<\/p>\n\n\n\n

He rented out every olive press in the area, which he was able to do at a fairly low cost. The olive harvest that year was especially good, and there was great demand for olive presses. Therefore, Thales was able to make a huge profit by renting the machines back to their owners, on his own terms. Having made his point (and his money), Thales returned to philosophizing.<\/p>\n\n\n\n

Aristotle argues that Thales\u2019s knowledge was what made this possible\u2014that he studied the stars and learned through astrology that the harvest would be a bountiful one. However, the truth is the exact opposite; it didn\u2019t matter how good the harvest was, because Thales was practicing optionality. <\/strong><\/p>\n\n\n\n

With a relatively small investment, he gained temporary control of every olive press in the area. If the harvest that year had been poor, he could have simply held onto the presses and wouldn\u2019t have been out too much money. Since the harvest happened to be excellent, he sold the rights back and made a tidy return on his small investment. In short, Thales had <\/strong>options<\/em><\/strong>, and because of that, the randomness of the harvest worked in his favor. <\/strong><\/p>\n\n\n\n

This is one example\u2014possibly the oldest one recorded\u2014of optionality leading to antifragility. <\/p>\n\n\n\n

Options Maximize Upsides and Minimize Downsides<\/strong><\/h3>\n\n\n\n

Remember that the basic pattern of antifragility is to have more upside available than downside\u2014that being the case, on average you\u2019ll gain more than you lose from random changes. The best way to make sure that happens is to have options available to you, so you can make the best choice at any given time.<\/strong><\/p>\n\n\n\n

This principle applies even in very mundane situations. For example, someone invited to a dinner party that isn\u2019t especially interesting, but is better than eating alone, might call around first to see if any other friends are available that evening. If a more interesting opportunity presents itself, the person can skip the party and do that instead. If not, the party is available as a fallback option, with the key word being option<\/em>. This person has very little to lose\u2014at worst, he winds up at a party that\u2019s rather less exciting than he\u2019d hoped. At best, he finds something more fun to do and has an excellent evening. <\/p>\n\n\n\n

Another person who benefits from optionality is any tenant in a rent-controlled apartment. This person can stay in the apartment for as long as he wants, largely protected from inflation. On the other hand, if rents in town somehow drop\u2014or if the tenant suddenly decides to start a new life in Mongolia, or what have you\u2014leaving the place is a fairly easy matter. All he has to do is notify the landlord a given number of days in advance and start packing. <\/p>\n\n\n\n

The key in both scenarios is that the person in question has the option\u2014but not the obligation\u2014to stay in his current situation. <\/strong>There\u2019s no risk that things will get worse, and if he happens to find better offers elsewhere, he\u2019s able to take them. Also in both situations, there\u2019s minimal cost for the options. The person looking for a fun evening is only out the time and effort of calling some friends, while the tenant only needs to keep paying the same rent he always has. Therefore, in both cases, there is a significant chance for improvement with little risk or cost. <\/p>\n\n\n\n

Options Love Dispersion<\/strong><\/h4>\n\n\n\n

Now that you know the optionality meaning you can think more about how it works. Because of the high chance of benefits and limited downsides, options love dispersion\u2014that is, they like being distributed across a large number of possibilities and outcomes. The negative outcomes don\u2019t matter nearly as much as the positive ones, because when you have options available you simply don\u2019t choose the negative outcomes. <\/strong><\/p>\n\n\n\n

This is another reason why things like art and ideas are antifragile: There\u2019s no downside to people not liking them. People who hate a certain book can\u2019t give the author negative sales, and people who find an idea distasteful can\u2019t rip it from the heads of other people. For artists and authors, therefore, it\u2019s actually better to have a small but devoted following, regardless of how many haters their work also attracts. <\/p>\n\n\n\n

Having people\u2019s opinions distributed in this way, from total contempt to adoration, is a net benefit for the artist. The worst possible thing for such people is to have everyone find their work acceptable, or \u201cjust okay,\u201d because people don\u2019t tend to buy things that are just okay.It\u2019s likely that dispersion is also how society will make progress. Societal improvements won\u2019t happen by raising the average intelligence or education level of the population; they\u2019ll occur because a few rare people have the imagination and courage to make that progress happen. <\/strong>Their outcomes will be distributed from utter failure to resounding success, and this is the key: The failures will not harm society at large, while the successes will benefit it.<\/p>\n","protected":false},"excerpt":{"rendered":"

What is the meaning of optionality? How does optionality work and how can it improve choices and outcomes? A key aspect of antifragility is having a variety of choices available. Having many options maximizes your chances of achieving success in most situations, whether it’s political, economic, or another type of system. Read more about optionality, its meaning, and how it relates to antifragility.<\/p>\n","protected":false},"author":5,"featured_media":15947,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[9,24],"tags":[295],"class_list":["post-37083","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-psychology","category-society","tag-antifragile","","tg-column-two"],"yoast_head":"\nOptionality: Meaning and Why It Matters for Antifragility - Shortform Books<\/title>\n<meta name=\"description\" content=\"Optionality, meaning having a variety of choices available at any given time, is a key aspect of antifragility. 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