A paradox for tiny probabilities and enormous values
Nick Beckstead (Open Philanthropy Project) and Teruji Thomas (Global Priorities Institute, Oxford University)
GPI Working Paper No. 7-2021, published in Noûs
We show that every theory of the value of uncertain prospects must have one of three unpalatable properties. Reckless theories recommend risking arbitrarily great gains at arbitrarily long odds for the sake of enormous potential; timid theories permit passing up arbitrarily great gains to prevent a tiny increase in risk; non-transitive theories deny the principle that, if A is better than B and B is better than C, then A must be better than C. While non-transitivity has been much discussed, we draw out the costs and benefits of recklessness and timidity when it comes to axiology, decision theory, and moral uncertainty.
Other working papers
Ethical Consumerism – Philip Trammell (Global Priorities Institute and Department of Economics, University of Oxford)
I study a static production economy in which consumers have not only preferences over their own consumption but also external, or “ethical”, preferences over the supply of each good. Though existing work on the implications of external preferences assumes price-taking, I show that ethical consumers generically prefer not to act even approximately as price-takers. I therefore introduce a near-Nash equilibrium concept that generalizes the near-Nash equilibria found in literature on strategic foundations of general equilibrium…
Funding public projects: A case for the Nash product rule – Florian Brandl (Stanford University), Felix Brandt (Technische Universität München), Dominik Peters (University of Oxford), Christian Stricker (Technische Universität München) and Warut Suksompong (National University of Singapore)
We study a mechanism design problem where a community of agents wishes to fund public projects via voluntary monetary contributions by the community members. This serves as a model for public expenditure without an exogenously available budget, such as participatory budgeting or voluntary tax programs, as well as donor coordination when interpreting charities as public projects and donations as contributions. Our aim is to identify a mutually beneficial distribution of the individual contributions. …
Economic growth under transformative AI – Philip Trammell (Global Priorities Institute, Oxford University) and Anton Korinek (University of Virginia)
Industrialized countries have long seen relatively stable growth in output per capita and a stable labor share. AI may be transformative, in the sense that it may break one or both of these stylized facts. This review outlines the ways this may happen by placing several strands of the literature on AI and growth within a common framework. We first evaluate models in which AI increases output production, for example via increases in capital’s substitutability for labor…