Skin in the game ( phrase ) - wikipedia Skin in the game ( phrase ) This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. ( February 2013 ) To have `` skin in the game '' is to have incurred risk ( monetary or otherwise ) by being involved in achieving a goal. In the phrase, `` skin '' is a synecdoche for the person involved, and `` game '' is the metaphor for actions on the field of play under discussion. The aphorism is particularly common in business, finance, and gambling, and is also used in politics. Contents 1 Etymology 2 In business and finance 3 See also 4 Further reading 5 References 6 External links Etymology The origin of the phrase is unknown. It has commonly been attributed to Warren Buffett, referring to his own investment in his initial fund. However, William Safire refutes Buffett as the source of the phrase, pointing to earlier instances. Another possible explanation is that the phrase draws its origins from William Shakespeare 's play The Merchant of Venice, in which the antagonist Shylock stipulates that the protagonist Antonio must promise a pound of his own flesh as collateral, to be exacted by Shylock in the event that Antonio 's friend Bassanio defaults on the loan to which Antonio is guarantor. In business and finance The term is used to ask or convey an owner ( s ) or principals undefined but significant equity stake in an investment vehicle where outside investors are solicited to invest. The theory is that principal 's equity contribution is directly related to the stability of the investment and confidence that management has in the venture and is also ( falsely ) strongly correlated to the expected yield of the investment. According to the economist Joseph Stiglitz, there tends to be a negative correlation between excess `` skin '' and negative returns. The main issues surrounding `` skin '' or excess `` skin '' is the principal -- agent problem whereby transparency and fiduciary obligations are disregarded by principals who have capital or excess capital ( skin ) tied into an entity. Many banks and other financial institutions bar employees from having any `` skin '' where client capital is managed, principally to address the issue of Front running and commingled funds ( MF Global ). Investment structures such as hedge funds, private equity, Trusts and Mutual funds are legally limited to a minority investment positions or are done to create a tax efficient structure. Typically equity inputs by these fiduciaries are around 0.5 - 2 %. Nassim Nicholas Taleb and Constantine Sandis have argued for skin in the game as a rational and ethical heuristic for all risk - taking. See also Eating your own dog food Further reading Nassim Nicholas Taleb ( 2018 ). Skin in the Game : Hidden Asymmetries in Daily Life. New York : Random House. ISBN 978 - 0 - 425 - 28462 - 9. References ^ Jump up to : Corey, Michael ( June 2, 2011 ). `` Skin in the Game ''. DeliberatelyConsidered.com. Retrieved 2013 - 03 - 10. Jump up ^ Investopedia, Skin In The Game Definition Jump up ^ Safire, William ( 2006 - 09 - 17 ). `` Skin in the Game ''. The New York Times. Jump up ^ Stiglitz, Joseph E. ( 1987 ). `` Principal and agent, The New Palgrave : A Dictionary of Economics, v. 3, pp. 966 -- 71. Jump up ^ `` MF Global : The mess that keeps getting messier ''. The Term Sheet : Fortune 's deals blog. fortune.cnn.com. November 21, 2011. Archived from the original on July 13, 2012. Retrieved 2013 - 03 - 10. Jump up ^ `` The Skin In The Game Heuristic for Protection Against Tail Events '' Review of Behavioral Economics, 1 : 1 -- 21 ( 2014 ) External links The dictionary definition of skin in the game at Wiktionary Retrieved from `` https://en.wikipedia.org/w/index.php?title=Skin_in_the_game_(phrase)&oldid=847476333 '' Categories : Economics catchphrases Business terms Gambling terminology Political metaphors Hidden categories : Articles needing additional references from February 2013 All articles needing additional references All articles with unsourced statements Articles with unsourced statements from March 2018 Talk Contents About Wikipedia Українська Edit links This page was last edited on 25 June 2018, at 16 : 46 ( UTC ). Text is available under the Creative Commons Attribution - ShareAlike License ; additional terms may apply. By using this site, you agree to the Terms of Use and Privacy Policy. Wikipedia ® is a registered trademark of the Wikimedia Foundation, Inc., a non-profit organization. About Wikipedia

Question: what does more skin in the game mean
Answer: to have incurred risk (monetary or otherwise) by being involved in achieving a goal