The tail exponent for company size appears to be 1.5 (half cubic), but the actual tail exponent in financial markets is lower than that, and using cute theoretical models based on square-root impact formulas to derive the tail exponent is problematic because the distribution of concentration is much higher in technology and other domains.
factualpending
Speaker
Nassim Nicholas TalebEvidence Quote
“I think uh the tail exponent in financial markets is lower than that from experience mhm and I don't like these cute theories because the distribution of um concentration is not 1.5 half cubic in with technology it's much much higher”
Created: 8/11/2026, 7:44:21 AM
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