Domains of forecasting
Note: This post is part of my series on forecasting for MIRI. I recommend reading my earlier post on the general-purpose forecasting community, my post on scenario planning, and my post on futures studies. Although this post doesn't rely on those, they do complement each other.
Note 2: If I run across more domains where I have substantive things to say, I'll add them to this post (if I've got a lot to say, I'll write a separate post and add a link to it as well). Suggestions for other domains worth looking into, that I've missed below, would be appreciated.
Below, I list some examples of domains where forecasting is commonly used. In the post, I briefly describe each of the domains, linking to other posts of mine, or external sources, for more information. The list is not intended to be comprehensive. It's just the domains that I investigated at least somewhat and therefore have something to write about.
- Weather and climate forecasting
- Agriculture, crop simulation
- Business forecasting, including demand, supply, and price forecasting
- Macroeconomic forecasting
- Political and geopolitical forecasting: This includes forecasting of election results, public opinion on issues, armed conflicts or political violence, and legislative changes
- Demographic forecasting, including forecasting of population, age structure, births, deaths, and migration flows.
- Energy use forecasting (demand forecasting, price forecasting, and supply forecasting, including forecasting of conventional and alternative energy sources; borrows some general ideas from business forecasting)
- Technology forecasting
Let's look into these in somewhat more detail.
Note that for some domains, scenario planning may be more commonly used than forecasting in the traditional sense. Some domains have historically been more closely associated with machine learning, data science, and predictive analytics techniques (this is usually the case when a large number of explanatory variables are available). Some domains have been more closely associated with futures studies, that I discussed here. I've included the relevant observations for individual domains where applicable.
Climate and weather forecasting
More details are in my posts on weather forecasting and weather and climate forecasting, but here are a few main points:
- The best weather forecasting methods use physical models rather than statistical models (though some statistics/probability is used to tackle some inherently uncertain processes, such as cloud formation). Moreover, they use simulations rather than direct closed form expressions. Errors compound over time due to a combination of model errors, measurement errors, and hypersensitivity to initial conditions.
- There are two baseline models against which the quality of any model can be judged: persistence (weather tomorrow is predicted to be the same as weather today) and climatology (weather tomorrow is predicted to be the average of the weather on that day over the last few years). We can think of persistence and climatology as purely statistical approaches, and these already do quite well. Any approach that consistently beats them needs to run very computationally intensive weather simulations.
- Even though a lot of computing power is used in weather prediction, human judgment still adds considerable value, about 10-25%, relative to what the computer models generate. This is attributed to humans being better able to integrate historical experience and common sense into their forecasts, and can offer better sanity checks. The use of machine learning tools in sanity-checking weather forecasts might substitute for the human value-added.
- Long-run climate forecasting methods are more robust in the sense of not being hypersensitive to initial conditions. Long-run forecasts require a better understanding of the speed and strength of various feedback mechanisms and equilibrating processes, and this makes them more uncertain. Whereas the uncertainty in short-run forecasts is mostly initial condition uncertainty, the uncertainty in long run forecasts arises from scenario uncertainty, plus uncertainty about the strength of various feedback mechanisms.
With long-term climate forecasting, a common alternative to forecasting is scenario analysis, such as that used by the IPCC in its discussion of long-term climate change. An example is the IPCC Special Report on Emissions Scenarios.
In addition to my overviews of weather and climate forecasting, I also wrote a series of posts on climate change science and some of its implications. These provide some interesting insight into the different points of contention related to making long-term climate forecasts, identifying causes, and making sense of a somewhat politicized realm of discourse. My posts in the area so far are below (I'll update this list with more posts as and when I make them):
- Climate science: how it matters for understanding forecasting, materials I've read or plan to read, sources of potential bias
- Time series forecasting for global temperature: an outside view of climate forecasting
- Carbon dioxide, climate sensitivity, feedback, and the historical record: a cursory examination of the Anthropogenic Global Warming (AGW) hypothesis
- [QUESTION]: What are your views on climate change, and how did you form them?
- The insularity critique of climate science
Agriculture and crop simulation
- Predictions of agricultural conditions and crop yields are made using crop simulation models (Wikipedia, PDF overview). Crop simulation models include purely statistical models, physical models that rely on simulations, and approximate physical models that use functional expressions.
- Weather and climate predictions are a key component of agricultural prediction, because of the dependence of agricultural yield on climate conditions. Some companies, such as The Climate Corporation (website, Wikipedia) specialize in using climate prediction to make predictions and recommendations for farmers.
Business forecasting
- Business forecasting includes forecasting of demand, supply, and price.
- Time series forecasting (i.e., trying to predict future values of a variable from past values of that variable alone) is quite common for businesses operating in environments where they have very little understanding of or ability to identify and measure explanatory variables.
- As with weather forecasting, persistence (or slightly modified versions thereof, such as trend persistence that assumes a constant rate of growth) can generally be simple to implement while coming close to the theoretical limit of what can be predicted.
- More about business forecasting can be learned from the SAS Business Forecasting Blog or the Institute of Business Forecasting and Planning website and LinkedIn group.
Two commonly used journals in business forecasting are:
- Journal of Business Forecasting (website)
- International Journal of Business Forecasting and Marketing Intelligence (website)
Many of the time series used in the Makridakis Competitions (that I discussed in my review of historical evaluations of forecasting) come from businesses, so the lessons of that competition can broadly be said to apply to the realm of business forecasting (the competition also uses a few macroeconomic time series).
Macroeconomic forecasting
There is a mix of explicit forecasting models and individual judgment-based forecasters in the macroeconomic forecasting arena. However, unlike the case of weather forecasting, where the explicit forecasting models (or more precisely, the numerical weather simulations) improve forecast accuracy to a level that would be impossible for unaided humans, the situation with macroeconomic forecasting is more ambiguous. In fact, the most reliable macroeconomic forecasts seem to arise by taking averages of the forecasts of a reasonably large number of expert forecasters, each using their own intuition, judgment, or formal model. For an overview of the different examples of survey-based macroeconomic forecasting and how they compare with each other, see my earlier post on the track record of survey-based macroeconomic forecasting.
Political and geopolitical forecasting
I reviewed political and geopolitical forecasting, including forecasting for political conflicts and violence, in this post. A few key highlights:
- This is the domain where Tetlock did his famous work showing that experts don't do a great job of predicting things, as described in his book Expert Political Judgment. I discussed Tetlock's work briefly in my review of historical evaluations of forecasting.
- Currently, the most reliable source of forecasts for international political questions is The Good Judgment Project (website, Wikipedia), which relies on aggregating the judgments of contestants who are given access to basic data and are allowed to use web searches. The GJP is co-run by Tetlock. For election forecasting in the United States, PollyVote (website, Wikipedia), FiveThirtyEight (website, Wikipedia), and prediction markets such as Intrade (website, Wikipedia) and the Iowa Electonic Markets (website, Wikipedia) are good forecast sources. Of these, PollyVote appears to have done the best, but the others have been more widely used.
- Quantitative approaches to prediction rely on machine learning and data science, combined with text analysis of news of political events.
Demographic forecasting
Forecasting of future population is a tricky business, but some aspects are easier to forecast than others. For instance, the population of 25-year-olds 5 years from now can be determined with reasonable precision by knowing the population of 20-year-olds now. Other variables, such as birth rates, are harder to predict (they can go up or down fast, at least in principle) but in practice, assuming level persistence or trend persistence can often offer reasonably good forecasts over the short term. While there are long-run trends (such as a trend of decline in both period fertility and total fertility) I don't know how well these declines were predicted. I wrote up some of my findings on the recent phenomenon of ultra-low fertility in many countries, so I have some knowledge of fertility trends, but I did not look systematically into the question of whether people were able to correctly forecast specific trends.
Gary King (Wikipedia) has written a book on demographic forecasting and also prepared slides covering the subject. I skimmed through his writing, but not enough to comment on it. It seems like mostly simple mathematics and statistics, tailored somewhat to the context of demographics.
With demographics, depending on context, scenario analyses may be more useful than forecasts. For instance, land use planning or city development may be done keeping in mind different possibilities for how the population and age structure might change.
Energy use forecasting (demand and supply)
Short-term energy use forecasting is often treated as a data science or predictive modeling problem, though ideas from general-purpose forecasting also apply. You can get an idea of the state of energy use forecasting by checking out the Global Energy Forecasting Competition (website, Wikipedia), carried out by a team led by Dr. Tao Hong, and cooperating with data science competitions company Kaggle (website, Wikipedia), some of the IEEE working groups, and the International Journal of Forecasting (one of the main journals of the forecasting community).
For somewhat more long-term energy forecasting, scenario analyses are more common. Energy is so intertwined with the global economy that an analysis of long-term energy use often involves thinking about many other elements of the world.
Shell (the organization to pioneer scenario analysis for the private sector) publishes some of its scenario analyses online at the Future Energy Scenarios page. While the understanding of future energy demand and supply is a driving force for the scenario analyses, they cover a wide range of aspects of society. For instance, the New Lens Scenario published in 2012 described two candidate futures for how the world might unfold till 2100, a "Mountains" future where governments played a major role and coordinated to solve global crises, and an "Oceans" future that was more decentralized and market-driven. (For a critique of Shell's scenario planning, see here). Shell competitor BP also publishes an Energy Outlook that is structured more as a forecast than as a scenario analysis, but does briefly consider alternative assumptions in a fashion similar to scenario analysis.
Technology forecasting
Many people in the LessWrong audience might find technology forecasting to be the first thing that crosses their minds when the topic of forecasting is raised. This is partly because technology improvements are quite salient. Improvements in computing are closely linked with the possibility of an Artificial General Intelligence. Famous among the people who view technology trends as harbingers of superintelligence is technologist and inventor Ray Kurzweil, who has been evaluated on LessWrong before. Website such as KurzweilAI.net and Exponential Times have popularized the idea of rapid, unprecedented, exponential growth, that despite its fast pace is somewhat predictable because of the close-to-exponential pattern.
I've written about technology forecasting at the object level before, for instance here, here (a look at Megamistakes), and here.
One other point about technology forecasting: compared to other types of forecasting, technology forecasting is more intricately linked with the domain of futures studies (that I described here). Why technology forecasting specifically? Futures studies seems designed more for studying and bringing about change rather than determining what will happen at or by a specific time. Technology forecasting, unlike other forms of forecasting, is forecasting changes in the technology that we use to operate our lives. So this is the most transformative forecasting domain, and naturally attracts more attention from futures studies.
Confound it! Correlation is (usually) not causation! But why not?
It is widely understood that statistical correlation between two variables ≠ causation. But despite this admonition, people are routinely overconfident in claiming correlations to support particular causal interpretations and are surprised by the results of randomized experiments, suggesting that they are biased & systematically underestimating the prevalence of confounds/common-causation. I speculate that in realistic causal networks or DAGs, the number of possible correlations grows faster than the number of possible causal relationships. So confounds really are that common, and since people do not think in DAGs, the imbalance also explains overconfidence.
Full article: http://www.gwern.net/Causality
Tools want to become agents
In the spirit of "satisficers want to become maximisers" here is a somewhat weaker argument (growing out of a discussion with Daniel Dewey) that "tool AIs" would want to become agent AIs.
The argument is simple. Assume the tool AI is given the task of finding the best plan for achieving some goal. The plan must be realistic and remain within the resources of the AI's controller - energy, money, social power, etc. The best plans are the ones that use these resources in the most effective and economic way to achieve the goal.
And the AI's controller has one special type of resource, uniquely effective at what it does. Namely, the AI itself. It is smart, potentially powerful, and could self-improve and pull all the usual AI tricks. So the best plan a tool AI could come up with, for almost any goal, is "turn me into an agent AI with that goal." The smarter the AI, the better this plan is. Of course, the plan need not read literally like that - it could simply be a complicated plan that, as a side-effect, turns the tool AI into an agent. Or copy the AI's software into a agent design. Or it might just arrange things so that we always end up following the tool AIs advice and consult it often, which is an indirect way of making it into an agent. Depending on how we've programmed the tool AI's preferences, it might be motivated to mislead us about this aspect of its plan, concealing the secret goal of unleashing itself as an agent.
In any case, it does us good to realise that "make me into an agent" is what a tool AI would consider the best possible plan for many goals. So without a hint of agency, it's motivated to make us make it into a agent.
False Friends and Tone Policing
TL;DR: It can be helpful to reframe arguments about tone, trigger warnings, and political correctness as concerns about false cognates/false friends. You may be saying something that sounds innocuous to you, but translates to something much stronger/more vicious to your audience. Cultivating a debating demeanor that invites requests for tone concerns can give you more information about about the best way to avoid distractions and have a productive dispute.
When I went on a two-week exchange trip to China, it was clear the cultural briefing was informed by whatever mistakes or misunderstandings had occurred on previous trips, recorded and relayed to us so that we wouldn't think, for example, that our host siblings were hitting on us if they took our hands while we were walking.
But the most memorable warning had to do with Mandarin filler words. While English speakers cover gaps with "uh" "um" "ah" and so forth, the equivalent filler words in Mandarin had an African-American student on a previous trip pulling aside our tour leader and saying he felt a little uncomfortable since his host family appeared to be peppering all of their comments with "nigga, nigga, nigga..."
As a result, we all got warned ahead of time. The filler word (那个 - nèige) was a false cognate that, although innocuous to the speaker, sounded quite off-putting to us. It helped to be warned, but it still required some deliberate, cognitive effort to remind myself that I wasn't actually hearing something awful and to rephrase it in my head.
When I've wound up in arguments about tone, trigger warnings, and taboo words, I'm often reminded of that experience in China. Limiting language can prompt suspicion of closing off conversations, but in a number of cases, when my friends have asked me to rephrase, it's because the word or image I was using was as distracting (however well meant) as 那个 was in Beijing.
It's possible to continue a conversation with someone who's every statement is laced with "nigga" but it takes effort. And no one is obligated to expend their energy on having a conversation with me if I'm making it painful or difficult for them, even if it's as the result of a false cognate (or, as the French would say, false friend) that sounds innocuous to me but awful to my interlocutor. If I want to have a debate at all, I need to stop doing the verbal equivalent of assaulting my friend to make any progress.
It can be worth it to pause and reconsider your language even if the offensiveness of a word or idea is exactly the subject of your dispute. When I hosted a debate on "R: Fire Eich" one of the early speakers made it clear that, in his opinion, opposing gay marriage was logically equivalent to endorsing gay genocide (he invoked a slippery slope argument back to the dark days of criminal indifference to AIDS).
Pretty much no one in the room (whatever their stance on gay marriage) agreed with this equivalence, but we could all agree it was pretty lucky that this person had spoken early in the debate, so that we understood how he was hearing our speeches. If every time someone said "conscience objection," this speaker was appending "to enable genocide," the fervor and horror with which he questioned us made a lot more sense, and didn't feel like personal viciousness. Knowing how high the stakes felt to him made it easier to have a useful conversation.
This is a large part of why I objected to PZ Myers's deliberate obtuseness during the brouhaha he sparked when he asked readers to steal him a consecrated Host from a Catholic church so that he could desecrate it. PZ ridiculed Catholics for getting upset that he was going to "hurt" a piece of bread, even though the Eucharist is a fairly obvious example of a false cognate that is heard/received differently by Catholics and atheists. (After all, if it wasn't holy to someone, he wouldn't be able to profane it). In PZ's incident, it was although we had informed our Chinese hosts about the 那个/nigga confusion, and they had started using it more boisterously, so that it would be clearer to us that they didn't find it offensive.
We were only able to defuse the awkwardness in China for two reasons.
- The host family was so nice, aside from this one provocation, that the student noticed he was confused and sought advice.
- There was someone on hand who understood both groups well enough to serve as an interpreter.
In an ordinary argument (especially one that takes place online) it's up to you to be visibly virtuous enough that, if you happen to be using a vicious false cognate, your interlocutor will find that odd, not of a piece with your other behavior.
That's one reason my debating friend did bother explaining explicitly the connection he saw between opposition to gay marriage and passive support of genocide -- he trusted us enough to think that we wouldn't endorse the implications of our arguments if he made them obvious. In the P.Z. dispute, when Catholic readers found him as the result of the stunt, they didn't have any such trust.
It's nice to work to cultivate that trust, and to be the kind of person your friends do approach with requests for trigger warnings and tone shifts. For one thing, I don't want to use emotionally intense false cognates and not know it, any more than I would want to be gesticulating hard enough to strike my friend in the face without noticing. For the most part, I prefer to excise the distraction, so it's easier for both of us to focus on the heart of the dispute, but, even if you think that the controversial term is essential to your point, it's helpful to know it causes your friend pain, so you have the opportunity to salve it some other way.
P.S. Arnold Kling's The Three Languages of Politics is a short read and a nice introduction to what political language you're using that sounds like horrible false cognates to people rooted in different ideologies.
P.P.S. I've cross-posted this on my usual blog, but am trying out cross-posting to Discussion sometimes.
On Terminal Goals and Virtue Ethics
Introduction
A few months ago, my friend said the following thing to me: “After seeing Divergent, I finally understand virtue ethics. The main character is a cross between Aristotle and you.”
That was an impossible-to-resist pitch, and I saw the movie. The thing that resonated most with me–also the thing that my friend thought I had in common with the main character–was the idea that you could make a particular decision, and set yourself down a particular course of action, in order to make yourself become a particular kind of person. Tris didn’t join the Dauntless cast because she thought they were doing the most good in society, or because she thought her comparative advantage to do good lay there–she chose it because they were brave, and she wasn’t, yet, and she wanted to be. Bravery was a virtue that she thought she ought to have. If the graph of her motivations even went any deeper, the only node beyond ‘become brave’ was ‘become good.’
(Tris did have a concept of some future world-outcomes being better than others, and wanting to have an effect on the world. But that wasn't the causal reason why she chose Dauntless; as far as I can tell, it was unrelated.)
My twelve-year-old self had a similar attitude. I read a lot of fiction, and stories had heroes, and I wanted to be like them–and that meant acquiring the right skills and the right traits. I knew I was terrible at reacting under pressure–that in the case of an earthquake or other natural disaster, I would freeze up and not be useful at all. Being good at reacting under pressure was an important trait for a hero to have. I could be sad that I didn’t have it, or I could decide to acquire it by doing the things that scared me over and over and over again. So that someday, when the world tried to throw bad things at my friends and family, I’d be ready.
You could call that an awfully passive way to look at things. It reveals a deep-seated belief that I’m not in control, that the world is big and complicated and beyond my ability to understand and predict, much less steer–that I am not the locus of control. But this way of thinking is an algorithm. It will almost always spit out an answer, when otherwise I might get stuck in the complexity and unpredictability of trying to make a particular outcome happen.
Virtue Ethics
I find the different houses of the HPMOR universe to be a very compelling metaphor. It’s not because they suggest actions to take; instead, they suggest virtues to focus on, so that when a particular situation comes up, you can act ‘in character.’ Courage and bravery for Gryffindor, for example. It also suggests the idea that different people can focus on different virtues–diversity is a useful thing to have in the world. (I'm probably mangling the concept of virtue ethics here, not having any background in philosophy, but it's the closest term for the thing I mean.)
I’ve thought a lot about the virtue of loyalty. In the past, loyalty has kept me with jobs and friends that, from an objective perspective, might not seem like the optimal things to spend my time on. But the costs of quitting and finding a new job, or cutting off friendships, wouldn’t just have been about direct consequences in the world, like needing to spend a bunch of time handing out resumes or having an unpleasant conversation. There would also be a shift within myself, a weakening in the drive towards loyalty. It wasn’t that I thought everyone ought to be extremely loyal–it’s a virtue with obvious downsides and failure modes. But it was a virtue that I wanted, partly because it seemed undervalued.
By calling myself a ‘loyal person’, I can aim myself in a particular direction without having to understand all the subcomponents of the world. More importantly, I can make decisions even when I’m rushed, or tired, or under cognitive strain that makes it hard to calculate through all of the consequences of a particular action.
Terminal Goals
The Less Wrong/CFAR/rationalist community puts a lot of emphasis on a different way of trying to be a hero–where you start from a terminal goal, like “saving the world”, and break it into subgoals, and do whatever it takes to accomplish it. In the past I’ve thought of myself as being mostly consequentialist, in terms of morality, and this is a very consequentialist way to think about being a good person. And it doesn't feel like it would work.
There are some bad reasons why it might feel wrong–i.e. that it feels arrogant to think you can accomplish something that big–but I think the main reason is that it feels fake. There is strong social pressure in the CFAR/Less Wrong community to claim that you have terminal goals, that you’re working towards something big. My System 2 understands terminal goals and consequentialism, as a thing that other people do–I could talk about my terminal goals, and get the points, and fit in, but I’d be lying about my thoughts. My model of my mind would be incorrect, and that would have consequences on, for example, whether my plans actually worked.
Practicing the art of rationality
Recently, Anna Salamon brought up a question with the other CFAR staff: “What is the thing that’s wrong with your own practice of the art of rationality?” The terminal goals thing was what I thought of immediately–namely, the conversations I've had over the past two years, where other rationalists have asked me "so what are your terminal goals/values?" and I've stammered something and then gone to hide in a corner and try to come up with some.
In Alicorn’s Luminosity, Bella says about her thoughts that “they were liable to morph into versions of themselves that were more idealized, more consistent - and not what they were originally, and therefore false. Or they'd be forgotten altogether, which was even worse (those thoughts were mine, and I wanted them).”
I want to know true things about myself. I also want to impress my friends by having the traits that they think are cool, but not at the price of faking it–my brain screams that pretending to be something other than what you are isn’t virtuous. When my immediate response to someone asking me about my terminal goals is “but brains don’t work that way!” it may not be a true statement about all brains, but it’s a true statement about my brain. My motivational system is wired in a certain way. I could think it was broken; I could let my friends convince me that I needed to change, and try to shoehorn my brain into a different shape; or I could accept that it works, that I get things done and people find me useful to have around and this is how I am. For now. I'm not going to rule out future attempts to hack my brain, because Growth Mindset, and maybe some other reasons will convince me that it's important enough, but if I do it, it'll be on my terms. Other people are welcome to have their terminal goals and existential struggles. I’m okay the way I am–I have an algorithm to follow.
Why write this post?
It would be an awfully surprising coincidence if mine was the only brain that worked this way. I’m not a special snowflake. And other people who interact with the Less Wrong community might not deal with it the way I do. They might try to twist their brains into the ‘right’ shape, and break their motivational system. Or they might decide that rationality is stupid and walk away.
The Universal Medical Journal Article Error
(Oops. I forgot this was moved to Discussion.)
TL;DR: When people read a journal article that concludes, "We have proved that it is not the case that for every X, P(X)", they generally credit the article with having provided at least weak evidence in favor of the proposition ∀x !P(x). This is not necessarily so.
Authors using statistical tests are making precise claims, which must be quantified correctly. Pretending that all quantifiers are universal because we are speaking English is one error. It is not, as many commenters are claiming, a small error. ∀x !P(x) is very different from !∀x P(x).
A more-subtle problem is that when an article uses an F-test on a hypothesis, it is possible (and common) to fail the F-test for P(x) with data that supports the hypothesis P(x). The 95% confidence level was chosen for the F-test in order to count false positives as much more expensive than false negatives. Applying it therefore removes us from the world of Bayesian logic. You cannot interpret the failure of an F-test for P(x) as being even weak evidence for not P(x).
How long will Alcor be around?
The Drake equation for cryonics is pretty simple: work out all the things that need to happen for cryonics to succeed one day, estimate the probability of each thing occurring independently, then multiply all those numbers together. Here’s one example of the breakdown from Robin Hanson. According to the 2013 LW survey, LW believes the average probability that cryonics will be successful for someone frozen today is 22.8% assuming no major global catastrophe. That seems startlingly high to me – I put the probability at at least two orders of magnitude lower. I decided to unpick some of the assumptions behind that estimate, particularly focussing on assumptions which I could model.
EDIT: This needs a health warning; here be overconfidence dragons. There are psychological biases that can lead you to estimating these numbers badly based on the number of terms you're asked to evaluate, statistical biases that lead to correlated events being evaluated independently by these kind of models and overall this can lead to suicidal overconfidence if you take the nice neat number these equations spit out as gospel.
Every breakdown includes a component for ‘the probability that the company you freeze with goes bankrupt’ for obvious reasons. In fact, the probability of bankruptcy (and global catastrophe) are particularly interesting terms because they are the only terms which are ‘time dependant’ in the usual Drake equation. What I mean by this is that if you know your body will be frozen intact forever, then it doesn’t matter to you when effective unfreezing technology is developed (except to the extent you might have a preference to live in a particular time period). By contrast, if you know safe unfreezing techniques will definitely be developed one day it matters very much to you that it occurs sooner rather than later because if you unfreeze before the development of these techniques then they are totally wasted on you.
The probability of bankruptcy is also very interesting because – I naively assumed last week – we must have excellent historical data on the probability of bankruptcy given the size, age and market penetration of a given company. From this – I foolishly reasoned – we must be able to calculate the actual probability of the ‘bankruptcy’ component in the Cryo-Drake equation and slightly update our beliefs.
I began by searching for the expected lifespan of an average company and got two estimates which I thought would be a useful upper- and lower-bound. Startup companies have an average lifespan of four years. S&P 500 companies have an average lifespan of fifteen years. My logic here was that startups must be the most volatile kind of company, S&P 500 must be the least volatile and cryonics firms must be somewhere in the middle. Since the two sources only report the average lifespan, I modelled the average as a half-life. The results really surprised me; take a look at the following graph:

(http://imgur.com/CPoBN9u.jpg)
Even assuming cryonics firms are as well managed as S&P 500 companies, a 22.8% chance of success depends on every single other factor in the Drake equation being absolutely certain AND unfreezing technology being developed in 37 years.
But I noticed I was confused; Alcor has been around forty-ish years. Assuming it started life as a small company, the chance of that happening was one in ten thousand. That both Alcor AND The Cryonics Institute have been successfully freezing people for forty years seems literally beyond belief. I formed some possible hypotheses to explain this:
- Many cryo firms have been set up, and I only know about the successes (a kind of anthropic argument)
- Cryonics firms are unusually well-managed
- The data from one or both of my sources was wrong
- Modelling an average life expectancy as a half-life was wrong
- Some extremely unlikely event that is still more likely than the one in billion chance my model predicts – for example the BBC article is an April Fool’s joke that I don’t understand.
I’m pretty sure I can rule out 1; if many cryo firms were set up I’d expect to see four lasting twenty years and eight lasting ten years, but in fact we see one lasting about five years and two lasting indefinitely. We can also probably rule out 2; if cryo firms were demonstrably better managed than S&P 500 companies, the CEO of Alcor could go and run Microsoft and use the pay differential to support cryo research (if he was feeling altruistic). Since I can’t do anything about 5, I decided to focus my analysis on 3 and 4. In fact, I think 3 and 4 are both correct explanations; my source for the S&P 500 companies counted dropping out of the S&P 500 as a company ‘death’, when in fact you might drop out because you got taken over, because your industry became less important (but kept existing) or because other companies overtook you – your company can’t do anything about Facebook or Apple displacing them from the S&P 500, but Facebook and Apple don’t make you any more likely to fail. Additionally, modelling as a half-life must have been flawed; a company that has survived one hundred years and a company that has survived one year are not equally likely to collapse!
Consequently I searched Google Scholar for a proper academic source. I found one, but I should introduce the following caveats:
- It is UK data, so may not be comparable to the US (my understanding is that the US is a lot more forgiving of a business going bankrupt, so the UK businesses may liquidate slightly less frequently).
- It uses data from 1980. As well as being old data, there are specific reasons to believe that this time period overestimates the true survival of companies. For example, the mid-1980’s was an economic boom in the UK and 1980-1985 misses both major UK financial crashes of modern times (Black Wednesday and the Sub-Prime Crash). If the BBC is to be believed, the trend has been for companies to go bankrupt more and more frequently since the 1920’s.
I found it really shocking that this question was not better studied. Anyway, the key table that informed my model was this one, which unfortunately seems to break the website when I try to embed it. The source is Dunne, Paul, and Alan Hughes. "Age, size, growth and survival: UK companies in the 1980s." The Journal of Industrial Economics (1994): 115-140.
You see on the left the size of the company in 1980 (£1 in 1980 is worth about £2.5 now). On the top is the size of the company in 1985, with additional columns for ‘taken over’, ‘bankrupt’ or ‘other’. Even though a takeover might signal the end of a particular product line within a company, I have only counted bankruptcies as representing a threat to a frozen body; it is unlikely Alcor will be bought out by anyone unless they have an interest in cryonics.
The model is a Discrete Time Markov Chain analysis in five-year increments. What this means is that I start my hypothetical cryonics company at <£1m and then allow it to either grow or go bankrupt at the rate indicated in the article. After the first period I look at the new size of the company and allow it to grow, shrink or go bankrupt in accordance with the new probabilities. The only slightly confusing decision was what to do with takeovers. In the end I decided to ignore takeovers completely, and redistribute the probability mass they represented to all other survival scenarios.
The results are astonishingly different:

(http://imgur.com/CkQirYD.jpg)
Now your body can remain alive 415 years for a 22.8% chance of revival (assuming all other probabilities are certain). Perhaps more usefully, if you estimate the year you expect revival to occur you can read across the x axis to find the probability that your cryo company will still exist by then. For example in the OvercomingBias link above, Hanson estimates that this will occur in 2090, meaning he should probably assign something like a 0.65 chance to the probability his cryo company is still around.
Remember you don’t actually need to estimate the actual year YOUR revival will occur, but only the first year the first successful revival proves that cryogenically frozen bodies are ‘alive’ in a meaningful sense and therefore recieve protection under the law in case your company goes bankrupt. In fact, you could instead estimate the year Congress passes a ‘right to not-death’ law which would protect your body in the event of a bankruptcy even before routine unfreezing, or the year when brain-state scanning becomes advanced enough that it doesn’t matter what happens to your meatspace body because a copy of your brain exists on the internet.
My conclusion is that the survival of your cryonics firm is a lot more likely that the average person in the street thinks, but probably a lot less likely that you think if you are strongly into cryonics. This is probably not news to you; most of you will be aware of over-optimism bias, and have tried to correct for it. Hopefully these concrete numbers will be useful next time you consider the Cryo-Drake equation and the net present value of investing in cryonics.
Siren worlds and the perils of over-optimised search
tl;dr An unconstrained search through possible future worlds is a dangerous way of choosing positive outcomes. Constrained, imperfect or under-optimised searches work better.
Some suggested methods for designing AI goals, or controlling AIs, involve unconstrained searches through possible future worlds. This post argues that this is a very dangerous thing to do, because of the risk of being tricked by "siren worlds" or "marketing worlds". The thought experiment starts with an AI designing a siren world to fool us, but that AI is not crucial to the argument: it's simply an intuition pump to show that siren worlds can exist. Once they exist, there is a non-zero chance of us being seduced by them during a unconstrained search, whatever the search criteria are. This is a feature of optimisation: satisficing and similar approaches don't have the same problems.
The AI builds the siren worlds
Imagine that you have a superintelligent AI that's not just badly programmed, or lethally indifferent, but actually evil. Of course, it has successfully concealed this fact, as "don't let humans think I'm evil" is a convergent instrumental goal for all AIs.
We've successfully constrained this evil AI in a Oracle-like fashion. We ask the AI to design future worlds and present them to human inspection, along with an implementation pathway to create those worlds. Then if we approve of those future worlds, the implementation pathway will cause them to exist (assume perfect deterministic implementation for the moment). The constraints we've programmed means that the AI will do all these steps honestly. Its opportunity to do evil is limited exclusively to its choice of worlds to present to us.
The AI will attempt to design a siren world: a world that seems irresistibly attractive while concealing hideous negative features. If the human mind is hackable in the crude sense - maybe through a series of coloured flashes - then the AI would design the siren world to be subtly full of these hacks. It might be that there is some standard of "irresistibly attractive" that is actually irresistibly attractive: the siren world would be full of genuine sirens.
Even without those types of approaches, there's so much manipulation the AI could indulge in. I could imagine myself (and many people on Less Wrong) falling for the following approach:
Other minds and bats: the vampire Turing test
Thoughts inspired by Yvain's philosophical role-playing post.
Thomas Nagel produced a famous philosophical thought experiment "What Is It Like to Be A Bat?" In it, he argued that the reductionist understanding of consciousness was insufficient, since there exists beings - bats - that have conscious experiences that humans cannot understand. We cannot know what "it is like to be a bat", and looking reductively at bat brains, bat neurones, or the laws of physics, cannot (allegedly) grant us any understanding of this subjective experience. Therefore there remains an unavoidable subjective component to the problem of consciousness.
I won't address this issue directly (see for instance this, on the closely related subject of qualia), but instead look at the question: suppose someone told us that they actually knew what it was like to be a bat (as well as what it was like to be a human). Call such a being a vampire, for obvious reasons. So if someone claimed they were a vampire, how would we test this?
We can't simply ask them to describe what it's like to be a bat - it's perfectly possible they know what it's like to be a bat, but cannot describe it in human terms (just as we often fail to describe certain types of experiences to those who haven't experienced them). Could we run a sort of Turing test - maybe implant the putative vampire's brain into a bat body, and see how bat-like it behaved? But, as Nagel pointed out, this could be a test of whether they know how to behave like a bat behaves, not whether they know what it's like to be a bat.
I posit that one possible solution is to use the approach laid out in my post "the flawed Turing test". We need to pay attention as to how the "vampire" got their knowledge. If the vampire is a renown expert on bat behaviour and social interactions, who is also interested in sonar and paragliding - then them functioning as a bat is weak evidence as to them actually knowing what it is like to be a bat. But suppose instead that their knowledge comes from another source - maybe the vampire is a renown brain expert, who has grappled with philosophy of mind and spent many years examining the functioning of bat brains. But, crucially, they have never seen a full living bat in the wild or in the lab, they've never watched a natural documentary on bats, they've never even seen a photo of a bat. In that case, if they behave correctly when transplanted into a bat body, then it's strong evidence of them actually understanding what it's like to be a bat.
Similarly, maybe they got their knowledge after a long conversation with another "vampire". We have the recording of the conversation, and it's all about mental states, imagery, emotional descriptions and visualisation exercises - but not about physical descriptions or bat behaviour. In that case, as above, if they can function successfully as a bat, this is evidence of them really "getting it".
In summary, we can say "that person likely knows what it is like to be a bat" if "knowing what it's like to be a bat" is the most likely explanation for what we see. If they behave exactly like a bat when in a bat body, and we know they have no prior experience that teaches them how to behave like a bat (but a lot about the bat's mental states), then we can conclude that it's likely that they genuinely know what it's like to be a bat, and are implementing this knowledge, rather than imitating behaviour.
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A common question here is how the LW community can grow more rapidly. Another is why seemingly rational people choose not to participate.
I've read all of HPMOR and some of the sequences, attended a couple of meetups, am signed up for cryonics, and post here occasionally. But, that's as far as I go. In this post, I try to clearly explain why I don't participate more and why some of my friends don't participate at all and have warned me not to participate further.
Rationality doesn't guarantee correctness. Given some data, rational thinking can get to the facts accurately, i.e. say what "is". But, deciding what to do in the real world requires non-rational value judgments to make any "should" statements. (Or, you could not believe in free will. But most LWers don't live like that.) Additionally, huge errors are possible when reasoning beyond limited data. Many LWers seem to assume that being as rational as possible will solve all their life problems. It usually won't; instead, a better choice is to find more real-world data about outcomes for different life paths, pick a path (quickly, given the time cost of reflecting), and get on with getting things done. When making a trip by car, it's not worth spending 25% of your time planning to shave off 5% of your time driving. In other words, LW tends to conflate rationality and intelligence.
In particular, AI risk is overstated There are a bunch of existential threats (asteroids, nukes, pollution, unknown unknowns, etc.). It's not at all clear if general AI is a significant threat. It's also highly doubtful that the best way to address this threat is writing speculative research papers, because I have found in my work as an engineer that untested theories are usually wrong for unexpected reasons, and it's necessary to build and test prototypes in the real world. My strong suspicion is that the best way to reduce existential risk is to build (non-nanotech) self-replicating robots using existing technology and online ordering of materials, and use the surplus income generated to brute-force research problems, but I don't know enough about manufacturing automation to be sure.
LW has a cult-like social structure. The LW meetups (or, the ones I experienced) are very open to new people. Learning the keywords and some of the cached thoughts for the LW community results in a bunch of new friends and activities to do. However, involvement in LW pulls people away from non-LWers. One way this happens is by encouraging contempt for less-rational Normals. I imagine the rationality "training camps" do this to an even greater extent. LW recruiting (hpmor, meetup locations near major universities) appears to target socially awkward intellectuals (incl. me) who are eager for new friends and a "high-status" organization to be part of, and who may not have many existing social ties locally.
Many LWers are not very rational. A lot of LW is self-help. Self-help movements typically identify common problems, blame them on (X), and sell a long plan that never quite achieves (~X). For the Rationality movement, the problems (sadness! failure! future extinction!) are blamed on a Lack of Rationality, and the long plan of reading the sequences, attending meetups, etc. never achieves the impossible goal of Rationality (impossible because "is" cannot imply "should"). Rationalists tend to have strong value judgments embedded in their opinions, and they don't realize that these judgments are irrational.
LW membership would make me worse off. Though LW membership is an OK choice for many people needing a community (joining a service organization could be an equally good choice), for many others it is less valuable than other activities. I'm struggling to become less socially awkward, more conventionally successful, and more willing to do what I enjoy rather than what I "should" do. LW meetup attendance would work against me in all of these areas. LW members who are conventionally successful (e.g. PhD students at top-10 universities) typically became so before learning about LW, and the LW community may or may not support their continued success (e.g. may encourage them, with only genuine positive intent, to spend a lot of time studying Rationality instead of more specific skills). Ideally, LW/Rationality would help people from average or inferior backgrounds achieve more rapid success than the conventional path of being a good student, going to grad school, and gaining work experience, but LW, though well-intentioned and focused on helping its members, doesn't actually create better outcomes for them.
"Art of Rationality" is an oxymoron. Art follows (subjective) aesthetic principles; rationality follows (objective) evidence.
I desperately want to know the truth, and especially want to beat aging so I can live long enough to find out what is really going on. HPMOR is outstanding (because I don't mind Harry's narcissism) and LW is is fun to read, but that's as far as I want to get involved. Unless, that is, there's someone here who has experience programming vision-guided assembly-line robots who is looking for a side project with world-optimization potential.