All of aphyer's Comments + Replies

aphyer*105

The phrase "Robbers don't need to rob people" is generally accurate.

But saying "Robbers don't need to rob people," and writing a long argument in support of that, makes it seem like you might be confused about the thought processes of robbers.

If robbers had a lot of cultural cachet and there were widely-disseminated arguments implying that robbers need to rob people, I think there would be a lot of value in a piece narrowly arguing that robbers don't need to rob people, regardless of your views on their thought processes. 

aphyer352

To get the virtue of the Void you need to turn off the gacha game and go touch grass.  If you fail to achieve that, it is futile to protest that you acted with propriety.

Vaniver200

The grass that can be touched is not the true grass.

aphyer20

Even if you accept that insects have value, helping insects right now is still quite questionable because it's a form of charity with zero long-term knock-on effects.

aphyer50

...to my confusion, not only do both of those look fine to me on mobile, the original post now also looks fine.

(Yes, I am on Android.)

aphyer50

On mobile I see no paragraph breaks, on PC I see them.  

Edited to add what it looks like on mobile:

2Ben Pace
Thanks! Zvi's post is imported, so it's stored a little differently than normal posts. Here's two copies I made stored differently (1, 2), I'd appreciate you letting me know if either of these look correct on mobile. (Currently it looks fine on my iPhone, are you on an Android?)
aphyer139

If there's less abuse happening in homeschooling than in regular schooling, a policy of "let's impose burdens on homeschooling to crack down on abuse in homeschooling" without a similar crackdown on abuse in non-home-schooling does not decrease abuse.

You can see something similar with self-driving cars.  It is bad if a self-driving car crashes.  It would be good to do things that reduce that.  But if you get to a point where self-driving cars are safer than regular driving, and you continue to crack down on self-driving cars but not on regular driving, this is not good for safety overall.

5Lukas_Gloor
It depends on efficiency of the interventions you'd come up with (some may not be much of a "burden" at all) and on the elasticity with which parents who intend to homeschool are turned away by "burdens". You make a good point but what you say is not generally true -- it totally depends on the specifics of the situation. (Besides, didn't the cited study say that both rates of abuse were roughly equal? I don't think anyone suggested that public schooled kids have [edit: drastically] higher abuse rates than home schooled ones? Was it 37% vs 36%?)
aphyer00

Apropos of nothing in particular, do you think that abolishing the Dept. of Education would make things go better or worse?

aphyer60

Buying time for technical progress in alignment...to be made where, and by who?

Any of the many nonprofits, academic research groups, or alignment teams within AI labs. You don't have to bet on a specific research group to decide that it's worth betting on the ecosystem as a whole.

There's also a sizeable contingent that thinks none of the current work is promising, and that therefore buying a little time is value mainly insofar as it opens the possibility of buying a lot of time. Under this perspective, that still bottoms out in technical research progress eventually, even if, in the most pessimistic case, that progress has to route through future researchers who are cognitively enhanced.

aphyer40

Mostly fair, but tiers did have a slight other impact in that they were used to bias the final room: Clay Golem and Hag were equally more-likely to be in the final room, both less so than Dragon and Steel Golem but more so than Orcs and Boulder Trap.

aphyer*40

Yes, that's a sneaky part of the scenario.  In general, I think this is a realistic thing to occur: 'other intelligent people optimizing around this data' is one of the things that causes the most complicated things to happen in real-world data as well.

Christian Z R had a very good comment on this, where they mentioned looking at the subset of dungeons where Rooms 2 and 4 had the same encounter, or where Rooms 6 and 8 had the same encounter, to factor out the impact of intelligence and guarantee 'they will encounter this specific thing'.

(Edited to add... (read more)

2simon
I actually did look at that (at least some subset with that property) at some point, though I didn't (think of/ get around to) re-looking at it with my later understanding. Indeed, I am not complaining! It was a good, fair difficulty to deal with.  That being said, there was one aspect I did feel was probably more complicated than ideal, and that was the combination of the tier-dependent alerting with the tiers not having any other relevance than this one aspect. That is, if the alerting had in each case been simply dependent on whether the adventurers were coming from an empty room or not, it would have been a lot simpler to work out. And if there was tier dependent alerting, but the tiers were more obvious in other ways*, it would still have been tricky but at least there would be a path to recognize the tiers and then try to figure out other ways that they might have relevance. The way it was it seemed to me you pretty much had to look at what were (ex ante) almost arbitrary combinations of (current encounter, next encounter) to figure that aspect out, unless you actually guessed the rationale of the alerting effect. That might be me rationalizing my failure to figure it out though! *  e.g. perhaps the traps/golems could have had the same score as the same-tier nontrap encounter when alerted (or alternatively when not alerted)
aphyer40

I think puzzling out the premise could have been a lot more fun if we hadn't known the entry and exit squares going in

I think this would have messed up the difficulty curve a bit: telling players 'here is the entrance and exit' is part of what lets 'stick a tough encounter at the entrance/exit' be a simple strategy.

The writing was as fun and funny as usual - if not more so! - but seemed less . . . pointed?/ambitious?/thematically-coherent? than I've come to expect.

This is absolutely true though I'm surprised it's obvious: my originally-planned scenario did... (read more)

aphyer*173

Here’s a third paper, showing that sports betting increases domestic violence. When the home team suffers an upset loss while sports betting is legal, domestic violence that day goes up by 9% for the day, with lingering effects. It is estimated 10 million Americans are victims of domestic violence each year. 

I was suspicious of the methodology here (e.g. the difference between 'when the home team loses violence goes up by 9% if and only if gambling is legalized' and 'when the home team loses violence goes up by 10% if gambling is not legalized but by ... (read more)

1[comment deleted]
1London L.
I agree. It also would be very odd if there was a high increase overall that that the paper would not directly state that as their main finding. Instead, the paper's main claim is that sports betting "amplifies" emotions and impacts on domestic violence. As you point out, if there's an unexpected loss, the domestic violence rate increases more in places with gambling, but, on the other hand, if there's an expected win, the domestic violence rate decreases more in places with gambling.
1Nathan Helm-Burger
I mean, it's depressing in a variety of ways. The argument, "allowing people to trick money away from a certain class of person is bad because that class of person is likely to abuse their family when upset" is not very motivating for me, personally. My distaste for exploitative betting companies comes from a place of compassion for those extorted. The domestic abuse fact lowers my compassion for the abusers. It then seems like I'm being threatened into protecting the abusers. Imagine them saying, "you'd better protect us from foolishly wasting our money, or else we'll get mad and abuse our families!" Uh, this makes me inclined to search for solutions that have nothing to do with gambling and more to do with detecting and preventing domestic abuse.
aphyer40

The dungeon is laid out as depicted; Room 3 does not border Room 4, and does border Room 6.  You don't, however, know what exactly the adventurers are going to do in your dungeon, or which encounters they are going to do in which order.  Perhaps you could figure that out from the dataset.

(I've edited the doc to make this clearer).

aphyer31

I think you may have mixed up the ordering halfway through the example: in the first and third tables 'Emma and you' is $90 while 'Emma and Liam'is $30, but in the second it's the other way around, and some of the charts seem odd as a result?

aphyer40

I don't think you should feel bad about that!  This scenario was pretty complicated and difficult, and even if you didn't solve it I think "tried to solve it but didn't quite manage it" is more impressive than "didn't try at all"!

aphyer4-4
  1. There is a problem I want solved.

  2. No-one, anywhere in the world, has solved it for me.

  3. Therefore, Silicon Valley specifically is bad.

4Eli Tyre
I didn't say Silicon Valley is bad. I said that the narrative about Silicon Valley is largely propagnada, which can be true independently of how good or bad it is, in absolute terms, or relative to the rest of the world.
aphyer20

Were whichever markets you're looking at open at this time? Most stuff doesn't trade that much out of hours.

2Gurkenglas
https://www.google.com/search?q=spx futures I was specifically looking at Nov 5th 0:00-6:00, which twitched enough to show aliveness, while manifold and polymarket moved in smooth synchrony.
aphyer30

I think this is just an unavoidable consequence of the bonus objective being outside-the-box in some sense: any remotely-real world is much more complicated than the dataset can ever be.

If you were making this decision at a D&D table, you might want to ask the GM:

  • How easy is it to identify magic items?  Can you tell what items your opponent uses while fighting him?  Can you tell what items the contestants use while spectating a fight?
  • Can we disguise magic items?  If we paint the totally powerful Boots of Speed lime green, will they still
... (read more)
aphyer20

ETA: I have finally tracked down the trivial coding error that ended up distorting my model: I accidentally used kRace in a few places where I should have used kClass while calculating simon's values for Speed and Strength.

 

Thanks for looking into that: I spent most of the week being very confused about what was happening there but not able to say anything.

aphyer40

Yeah, my recent experience with trying out LLMs has not filled me with confidence.  

In my case the correct solution to my problem (how to use kerberos credentials to authenticate a database connection using a certain library) was literally 'do nothing, the library will find a correctly-initialized krb file on its own as long as you don't tell it to use a different authentication approach'.  Sadly, AI advice kept inventing ways for me to pass in the path of the krb file, none of which worked.

I'm hopeful that they'll get better going forward, but right now they are a substantial drawback rather than a useful tool.

aphyer20

Ah, sorry to hear that.  You can still look for a solution even if you aren't in time to make it on the leaderboard!

Also, if you are interested in these scenarios in general, you can subscribe to the D&D. Sci tag (click the 'Subscribe' button on that page) and you'll get notifications whenever a new one is posted.

1Christian Z R
A thanks a lot. I was actually working through the earlier scenarios, I just missed that I new one had popped up. Subscribed now, then I will hopefully notice the next one.   Also, my approach didn't work this time, I ended up trying with a way too complicated model. I really like how the actual answer to this one worked.
aphyer5-1

Your 'accidents still happen' link shows:

One airship accident worldwide in the past 5 years, in Brazil.

The last airship accident in the US was in 2017.

The last airship accident fatality anywhere in the world was in 2011 in Germany.

The last airship accident fatality in the US was in 1986.

I think that this compares favorably with very nearly everything.

8DaemonicSigil
Have to divide by number of airships, which probably makes them less safe than planes, if not cars. I think the difficulty is mostly with having a large surface-area exposed to the wind making the ships difficult to control. (Edit: looking at the list on Wikipedia, this is maybe not totally true. A lot of the crashes seem to be caused by equipment failures too.)
aphyer40

How many of those green lights could the Wright Brothers have shown you?

1Lorec
I don't know, I'm not familiar with the history; probably zero. It's a metaphor. The things the two scenarios are supposed to have in common are first-time-ness, danger, and technical difficulty. I point out in the post that the AGI scenario is actually irreducibly harder than first-time heavier-than-air flight: you can't safely directly simulate intelligent computations themselves for testing, because then you're just running the actual computation. But as for the application of "green light" standards - the actual Wright brothers were only risking their own lives. Why should someone else need to judge their project for safety?
aphyer7221

You can correct it in the dataset going forward, but you shouldn't go back and correct it historically.   To see why, imagine this simplified world:

  • In 2000, GM had revenue of $1M, and its stock was worth in total $10M.  Ford had revenue of $2M, and its stock was worth in total $20M.  And Enron reported fake revenue of $3M, and its stock was worth in total $30M.
  • In 2001, the news of Enron's fraud came out, and Enron's stock dropped to zero.  Also, our data vendor went back and corrected its 2000 revenue down to 0.
  • In 2002, I propose a trad
... (read more)
2CounterBlunder
I see, that makes sense. Thank you!
aphyer*4212

One particularly perfidious example of this problem comes when incorrect data is 'corrected' to be more accurate.

A fictionalized conversation:

Data Vendor: We've heard that Enron [1]falsified their revenue data[2].  They claimed to make eleven trillion dollars last year, and we put that in our data at the time, but on closer examination their total revenue was six dollars and one Angolan Kwanza, worth one-tenth of a penny.

Me: Oh my!  Thank you for letting us know.

DV: We've corrected Enron's historical data in our database to reflect this upd-

... (read more)

Can you help me see this point? Why not correct it in the dataset? (Assuming that the dataset hasn't yet been used to train any models)

aphyer20

Success indeed, young Data Scientist!  Archmage Anachronos thanks you for your aid, which will surely redound to the benefit of all humanity!  (hehehe)

aphyer*20

LIES! (Edit: post did arrive, just late, accusation downgraded from LIES to EXCESSIVE OPTIMISM REGARDING TIMELINES)

aphyer20

MUWAHAHAHAHA!  YOU FOOL!

ahem

That is to say, I'm glad to have you playing, I enjoy seeing solutions even after scenarios are finished.  (And I think you're being a bit hard on yourself, I think simon is the only one who actually independently noticed the trick.)

aphyer*28-1

Petrov Day Tracker:

  • 2019: Site did not go down
  • 2020: Site went down deliberately
  • 2021: Site did not go down
  • 2022: Site went down both accidentally and deliberately
  • 2023: Site did not go down[1]
  • 2024: Site went down accidentally...EDIT: but not deliberately!  Score is now tied at 2-2!
  1. ^

    this scenario had no take-the-site-down option

5Martin Randall
Switch 2020 & 2021. In 2022 it went down three times. * 2019: site did not go down. See Follow-Up to Petrov Day, 2019: * 2020: site went down. See On Destroying the World. * 2021: site did not go down. See Petrov Day Retrospective 2021 * 2022: site went down three times. See Petrov Day Retrospective 2022 * 2023: site did not go down. See Petrov Day Retrospective 2023 * 2024: site went down.
aphyer21

I assume that this is primarily directed at me for this comment, but if so, I strongly disagree.

Security by obscurity does not in fact work well.  I do not think it is realistic to hope that none of the ten generals look at the incentives they've been given and notice that their reward for nuking is 3x their penalty for being nuked.  I do think it's realistic to make sure it is common knowledge that the generals' incentives are drastically misaligned with the citizens' incentives, and to try to do something about that.

(Honestly I think that I dis... (read more)

6Ben
I agree with this. In my very limited experience (which is mostly board games with some social situations thrown in), attempts to obscure publically discernible information to influence other people's actions are often extremely counter-productive. If you don't give people the full picture, then the most likely case is not that they discover nothing, but that they discover half the picture. And you don't know in advance which half. This makes them extremely unpredictable. You want them to pick A in preference to B, but the half-picture they get drives them to pick C which is massively worse for everyone. In board games I have played, if a slightly prisoner's dilemma like situation arises, you are much more likely to get stung by someone who has either misunderstood the rules or has misunderstood the equilibrium than someone who knows what is going on. [As a concrete example, in the game Scyth a new player believed that they got mission completion points for each military victory, not just the first one. As they had already scored a victory another played reasoned they wouldn't make a pointless attack. But they did make the pointless attack. It set them and their target back, giving the two players not involved in that battle a relative advantage.] “The best swordsman does not fear the second best, he fears the worst since there’s no telling what that idiot is going to do.” [https://freakonomics.com/2011/10/rules-of-the-game/#:~:text=%E2%80%9CThe%20best%20swordsman%20does%20not,can%20beat%20smartness%20and%20foresight%3F] This best swordsman wants more people to know how to sword fight, not fewer.
8Zach Stein-Perlman
No. I noticed ~2 more subtle infohazards and I was wishing for nobody to post them and I realized I can decrease that probability by making an infohazard warning. I ask that you refrain from being the reason that security-by-obscurity fails, if you notice subtle infohazards.
aphyer30

Eeeesh.  I know I've been calling for a reign of terror with heads on spikes and all that, but I think that seems like going a bit too far.

aphyer30

Yes, we're working on aligning incentives upthread, but for some silly reason the admins don't want us starting a reign of terror.

aphyer*60

I have.  I think that overall Les Mis is rather more favorable to revolutionaries than I am.  For one thing, it wants us to ignore the fact that we know what will happen when Enjolras's ideological successors eventually succeed, and that it will not be good.

(The fact that you're using the word 'watched' makes me suspect that you may have seen the movie, which is honestly a large downgrade from the musical.)

2J Bostock
Isn't Les Mis set in the second French Revolution (1815 according to wikipedia) not the one that led to the Reign of Terror (which was in the 1790s)?
2Stephen Fowler
This is a leak, so keep it between you and me, but the big twist to this years Petrov Day event is that Generals who are nuked will be forced to watch the 2012 film on repeat. 
aphyer135

During WWII, the CIA produced and distributed an entire manual (well worth reading) about how workers could conduct deniable sabotage in the German-occupied territories.
 

(11) General Interference with Organizations and Production 

   (a) Organizations and Conferences

  1. Insist on doing everything through "channels." Never permit short-cuts to be taken in order to expedite decisions. 
  2. Make speeches, talk as frequently as possible and at great length.  Illustrate your points by long anecdotes and accounts of personal experiences. Neve
... (read more)
5Wuschel Schulz
Wow, this is an awsome document.  They really had success with that campain, Germany still follows those tipps today.
aphyer2621

Accepting a governmental monopoly on violence for the sake of avoiding anarchy is valuable to the extent that the government is performing better than anarchy. This is usually true, but stops being true when the government starts trying to start a nuclear war.

aphyer2815

If the designers of Petrov Day are allowed to offer arbitrary 1k-karma incentives to generals to nuke people, but the citizens are not allowed to impose their own incentives, that creates an obvious power issue.  Surely 'you randomly get +1k karma for nuking people' is a larger moderation problem than 'you get -1k karma for angering large numbers of other users'.

No, wait, that was the wrong way to put it...

Do you hear the people sing, singing the song of angry men

It is the music of a people who will not be nuked again

The next time some generals decide

... (read more)
4tailcalled
Have you watched Les Miserables? Watching it completely changed the vibe of this song for me, such that it pretty much makes the opposite point now than it did before.
habryka2410

Such is life under a government. We have the monopoly on violence.This does unfortunately often imply power issues, but probably still better than anarchy and karma wars in the streets.

aphyer*5614

CITIZENS!  YOU ARE BETRAYED!

Your foolish 'leaders' have given your generals an incentive scheme that encourages them to risk you being nuked for their glory.

I call on all citizens of EastWrong and WestWrong to commit to pursuing vengeance against their generals[1] if and only if your side ends up being nuked.  Only thus can we align incentives among those who bear the power of life and death!

For freedom!  For prosperity!  And for not being nuked!

  1. ^

    By mass-downvoting all their posts once their identities are revealed.

4Zach Stein-Perlman
I think it’s better to be angry at the team that launched the nukes?
8Logan Riggs
We could instead  pre-commit to not engage with any nuker's future posts/comments (and at worse comment to encourage others to not engage) until end-of-year. Or only include nit-picking comments.
habryka*160

Lol, I mean, kind of fair, but mass-downvoting is still against the rules and we'll take moderation action against people who do (though writing angry comments isn't).

philh198

Launching nukes is one thing, but downvoting posts that don't deserve it? I'm not sure I want to retaliate that strongly.

aphyer145

The best LW Petrov Day morals are the inadvertent ones.  My favorite was 2022, when we learned that there is more to fear from poorly written code launching nukes by accident than from villains launching nukes deliberately.  Perhaps this year we will learn something about the importance of designing reasonable prosocial incentives.

aphyer321

Why is the benefit of nuking to generals larger than the cost of nuking to the other side's generals?

It is possible with precommitments under the current scheme for the two sides' generals to agree to flip a coin, have the winning side nuke the losing side, and have the losing side not retaliate.  In expectation, this gives the generals each (1000-300)/2 = +350 karma.

I don't think that's a realistic payoff matrix.

habryka347

The generals have bunkers and lots of stockpiles, they'll be fine. They might also find nuclear war somewhat exciting. How bad is a life lived as a king of the wasteland really compared to the glory of world domination? 

See also: 

1HelloQuestonMark
Seems like defection towards the participants overall, compared to no nukes fired: * in the no nukes scenario, the 10 generals get +100 each, the two Petrovs get +1000(?) each, and citizens get nothing (+3000 karma in total); * in the coin flip scenario, the 10 generals get +350 in expectation each, the two Petrovs get +200..1000(?) each (depending on when in the game the button is pressed), and the 300 citizens get -12.5 in expectation each (-50..+750 karma in total).
Ben105

I very good point. Especially after reading your other comment I wonder if this is deliberate.

The payoff matrix for the generals suggests that in a one-way attack the winning generals win more than the losers loose. Hence your coin toss plan. But, for the civilians it is the other way around. (+25 for winning, but -50 for loosing). 

I suspect it may be some kind of message about how the generals launching the nuclear war have different incentives to the civilians, as the generals may place a higher value on victory, and are more likely to access bunkers and so on.

4Yoav Ravid
Technically it makes sense for the nuked side to lose everything and for the nuking side to gain little. But you want to model a scenario where the sides might actually want to nuke the other side, which you have naturally between enemies, but don't have between LessWrongers unless you incentivize them somehow. So giving rewards for nuking makes sense, because people want to increase their own Karma but don't want to decrease the Karma of others. And I think the incentives are deliberately designed such that no nukes aren't the obvious optimal equilibrium. That's what makes it an exercise in not destroying the world. If it were easy it wouldn't be much of an exercise.
7ryan_b
It does, if anything, seem almost backwards - getting nuked means losing everything, and successfully nuking means gaining much but not all. However, that makes the game theory super easy to solve, and doesn't capture the opposing team dynamics very well for gaming purposes.
aphyer171

Eliezer, this is what you get for not writing up the planecrash threat lecture thread.  We'll keep bothering you with things like this until you give in to our threats and write it.

aphyer113

Splitting out 'eating out' and 'food at home' is good, but not the whole story due to the rise of delivery.

I believe the snarky phrasing is "Inflation is bad?  Or you ordered a private taxi for your burrito?"

Doesn't that just make it even more confusing? I guess we also buy taxis for our groceries, but the overhead is much lower when you're buying hundreds of dollars worth of groceries instead of a $10 burrito. Plus, these prices all tracked each other from 2000-2010, but Instacart didn't even exist until 2012.

aphyer3-2

I don't actually think 'Alice gets half the money' is the fair allocation in your example.

Imagine Alice and Bob splitting a pile of 100 tokens, which either of them can exchange for $10M each.  It seems obvious that the fair split here involves each of them ending up with $500M.

To say that the fair split in your example is for each player to end up with $500M is to place literally zero value on 'token-exchange rate', which seems unlikely to be the right resolution.

1StrivingForLegibility
This might be a framing thing! The background details I’d been imagining are that Alive and Bob were in essentially identical situations before their interaction, and it was just luck that Alice and Bob got the capabilities they did. Alice and Bob have two ways to convert tokens into money, and I’d claim that any rational joint strategy involves only using Bob’s way. Alice's ability to convert tokens into pennies is a red herring that any rational group should ignore. At that point, it's just a bargaining game over how to split the $1,000,000,000. And I claim that game is symmetric, since they’re both equally necessary for that surplus to come into existence. If Bob had instead paid huge costs to create the ability to turn tokens into tens of millions of dollars, I totally think his costs should be repaid before splitting the remaining surplus fairly.
aphyer40

Update: the market has resolved to Edmundo Gonzales (not to Maduro).  If you think this is not the right resolution given the wording, I agree with you.  But if you think the wording was clear and unambiguous to being with, I think this should suggest otherwise.

aphyer*180

So the original devs have all long since left the firm, and as I'm sure you've discovered the documentation is far from complete.

With that said, it sounds like you haven't read the original requirements doc, and so you've misunderstood what DEMOCRACY was built for.  It's not a control subsystem, it's a sacrificial sandbox environment to partition attackers away from the rest of the system and limit the damage they can do to vital components like ECONOMY and HUMAN_RIGHTS.

The 'Constitution.doc' file specifies the parameters of the sandboxed environment,... (read more)

aphyer61

(Non-expert opinion).

For a robot to pass the Turing Test turned out to be less a question about the robot and more a question about the human.

Against expert judges, I still think LLMs fail the Turing Test.  I don't think current AI can pretend to be a competent human in an extended conversation with another competent human.

Again non-expert judges, I think the Turing Test was technically passed long long before LLMs: didn't some of the users of ELIZA think and act like it was human?  And how does that make you feel?

2jbash
The ELIZA users may have acted like it was human, but they didn't think it was human. And they weren't trying to find ways to test whether it was human or not. If they had been, they'd have knocked it over instantly.
4Razied
I suspect the expert judges would need to resort to known jailbreaking techniques to distinguish LLMs. A fair interesting test might be against expert-but-not-in-ML judges.
aphyer*40

I agree that that would probably be the reasonable thing to do at this point.  However, that's not actually what the Polymarket market has done - it's still Disputed, and in fact Maduro has traded down to 81%.

And I think a large portion of the reason why this has happened is poor decision-making in how the question was initially worded.

 

Edited to add: Maduro is now down to 63% in the market, probably because the US government announced that it thinks his opponent won? No, that's not an official Venezuelan source. But it seems to have moved the market anyway. 

aphyer31

My sense is this security would be fine? Is there a big issue with this being a security? 

In the sense that it would find a market-clearing price, it's fine.  But in the sense of its price movements being informative...well.  Say the price of that security has just dropped by 10%.  

Is the market reflecting that bad news about Google's new AI model is likely to reflect poor long-term prospects?  Is it indicating that increased regulatory scrutiny is likely to be bad for Google's profitability?

Or is Sundar Pichai going bald?

5habryka
I mean, I feel like random things affect the price of securities all the time. During early COVID random fiscal policy decisions had a much bigger effect on the stock price of companies than their actual competence. Similarly, COVID itself of course had huge effects.  I feel like it's normal that when the stock price of a company moves, this often has little to do with the company, but can be chased back to kind of "random" other things. In this case, the stock price would go down, and it would be pretty easy to check whether that was because something related to the resolution criteria changed, or whether something "core" to the company changed.
aphyer165

I agree that most markets resolve successfully, but think we might not be on the same page on how big a deal it is for 5% of markets to end up ambiguous.

If someone offered you a security with 95% odds to track Google stock performance and 5% odds to instead track how many hairs were on Sundar Pichai's head, this would not be a great security!  A stock market that worked like that would not be a great stock market!

In particular:

  1. I think this ambiguity is a massive blow to arbitrage strategies (which are a big part of the financial infrastructure we're h
... (read more)
2NunoSempere
I disagree with the 5% of switching to a Sundar Pichai hairs simile: * Prediction market prices are bounded between 0 and 1 * Polymarket has > 1k markets, and maybe 3 to 10 ambiguous resolutions a year. It's more like 0.3% to 1%.
2habryka
My sense is this security would be fine? Is there a big issue with this being a security?  In most domains except the most hardened part of the stock market counterparty risk is generally >5%. The key issues come when failure is correlated, but it seems to me indeed that in prediction markets it's pretty random which way ambiguity resolves, and so you get pretty uncorrelated failures (like, if you are invested in 10,000 markets, while it might be the case that 500 of them resolve in a surprising and ambiguous way, you will pretty randomly be on the losing or winning side of it, so it mostly just cancels out).
aphyer41

I don't think 'official information from Venezuela' is fully unambiguous.  What should happen if the CNE declares Maduro the winner, but Venezuela's National Assembly refuses to acknowledge Maduro's win and appoints someone else to the presidency?  This is not a pure hypothetical, this literally happened in 2018!  Do we need to wait on resolving the market until we see whether that happens again?

I agree that resolving that market to Maduro is probably the right approach right now.  But I don't actually think the market description is en... (read more)

2Brendan Long
But the market isn't "who will eventually become president", it's "who will win the election (according to official sources)". Like how "who will win the US election (according to AP, Fox and NBC)" and "who will be president on inaugeration day" are different questions. The standard of "what if the result changes" would make almost any market impossible to resolve. Like what if AP/Fox/NBC call the election for Harris, but then Trump does a coup and threatens them until they announce that actually he won? What if Trump wins but the person who actually gets sworn in is an actor who looks like Trump? Do we need to wait to see if that happens before we resolve the question? Making most questions not resolve at all is worse than weird edge cases where they resolve in ways people don't like, so I think in the absence of clear rules that the question won't resolve until some standard is met, resolving as soon as possible seems like the best default.
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