Be careful what you announce about your expected value maximization
Judge Kaplan: A man willing to flip a coin as to the continued existence of life on earth. Mr. Bankman-Fried knew that Alameda was spending customer funds on risky investments, political contributions and Bahamas real estate. The funds were not his to use
— Inner City Press (@innercitypress) March 28, 2024
That is via Shiraz. Here is my CWT with Sam Bankman-Fried, here is the key passage:
COWEN: Should a Benthamite be risk-neutral with regard to social welfare?
BANKMAN-FRIED: Yes, that I feel very strongly about.
COWEN: Okay, but let’s say there’s a game: 51 percent, you double the Earth out somewhere else; 49 percent, it all disappears. Would you play that game? And would you keep on playing that, double or nothing?
BANKMAN-FRIED: With one caveat. Let me give the caveat first, just to be a party pooper, which is, I’m assuming these are noninteracting universes. Is that right? Because to the extent they’re in the same universe, then maybe duplicating doesn’t actually double the value because maybe they would have colonized the other one anyway, eventually.
COWEN: But holding all that constant, you’re actually getting two Earths, but you’re risking a 49 percent chance of it all disappearing.
BANKMAN-FRIED: Again, I feel compelled to say caveats here, like, “How do you really know that’s what’s happening?” Blah, blah, blah, whatever. But that aside, take the pure hypothetical.
COWEN: Then you keep on playing the game. So, what’s the chance we’re left with anything? Don’t I just St. Petersburg paradox you into nonexistence?
BANKMAN-FRIED: Well, not necessarily. Maybe you St. Petersburg paradox into an enormously valuable existence. That’s the other option.
COWEN: Are there implications of Benthamite utilitarianism where you yourself feel like that can’t be right; you’re not willing to accept them? What are those limits, if any?
There are other gems, including this one:
COWEN: In which respects have you brought a legal mind to your endeavors?
BANKMAN-FRIED: It’s becoming increasingly important over time…
Recommended.
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