Weapons of Math Destruction: How Big Data Increases Inequality and Threatens Democracy

by Cathy O'Neil

To understand how hedge funds operate at the margins, picture a World Series game at Chicago’s Wrigley Field. With a dramatic home run in the bottom of the ninth inning, the Cubs win their first championship since 1908, back when Teddy Roosevelt was president. The stadium explodes in celebration. But a single row of fans stays seated, quietly analyzing a slew of results. These gamblers don’t hold the traditional win-or-lose bets. Instead they may have bet that Yankees relievers would give up more walks than strikeouts, that the game would feature at least one bunt but no more than two, or that the Cubs’ starter would last at least six innings. They even hold bets that other gamblers will win or lose their own bets. These people wager on many movements associated with the game, but not as much on the game itself. In this, they behave like hedge funds.