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Long Bets by Confidence Level

102 点作者 raleighm超过 5 年前

6 条评论

wpietri超过 5 年前
Hi! I wrote the original software for Long Bets some years ago. I can&#x27;t speak officially about the project, as I was just a coder. But maybe my take here is useful.<p>I enjoyed the article, and think the analysis is correct as far as it goes. If your goal is to donate maximum dollars in the future, a Long Bet may not be your best choice. I just think that&#x27;s rarely the goal.<p>The main issue here is that nobody does a Long Bet so that their charity gets more money eventually. The Long Now&#x27;s mission is to promote long-term thinking. Long Bets in specific promotes clarity and accountability via carefully-stated long-term predictions and bets.[1] Take, for example, Bet id 362: <a href="http:&#x2F;&#x2F;longbets.org&#x2F;362&#x2F;" rel="nofollow">http:&#x2F;&#x2F;longbets.org&#x2F;362&#x2F;</a><p>St. Warren of Omaha was not trying to maximize money to his charity. He has approximately infinite dollars; this was a rounding error. He was trying to make a point very publicly. He thought that hedge funds were generally horseshit, and that most investors would do far better making simple, straightforward choices rather than giving their money to people who promised to do wonders: <a href="https:&#x2F;&#x2F;money.cnn.com&#x2F;2018&#x2F;02&#x2F;24&#x2F;investing&#x2F;warren-buffett-annual-letter-hedge-fund-bet&#x2F;index.html" rel="nofollow">https:&#x2F;&#x2F;money.cnn.com&#x2F;2018&#x2F;02&#x2F;24&#x2F;investing&#x2F;warren-buffett-an...</a><p>What he was buying was not a specific dollar gain, but a clear, visible test of contrasting views. And it worked wonderfully; this bet was in the news off and on for more than 10 years.<p>I believe another goal of most people doing a Long Bet is to support the idea of long bets and long-term thinking, so I suspect that they look at the Long Now&#x27;s rake as another donation to a charity they like. This analysis values that at zero.<p>I&#x27;d note also that for truly long-term bets, this analysis discounts the fact that the bettors will be dead. I think our current longest bet runs from 2002-2150. For a mere $1000, I doubt there&#x27;s a donor-advised fund in the world that will agree to act as trustee for 150 years, selecting the most appropriate charity at the time of resolution. And of course no DAF will provide the clear record and eventual judging of a bet.<p>And really, if one&#x27;s goal is giving money to charity, I suspect the best thing to do is give the money now. Whatever need they&#x27;re addressing is presumably urgent enough that they&#x27;d rather spend the money today than put it in a long-term fund. And if it isn&#x27;t (as is perhaps the case with the B-612 Foundation [2], which is saving up for a satellite), the charity in question is probably a better judge of exactly how to invest the money until they&#x27;re ready for it. At the very worse, they money could be given with the restriction that it be used as an endowment.<p>So I look at this analysis as a good start, but definitely not complete given who actually uses the service.<p>[1] It&#x27;s very much in the spirit of the Erlich wager: <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Simon%E2%80%93Ehrlich_wager" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Simon%E2%80%93Ehrlich_wager</a><p>[2] <a href="https:&#x2F;&#x2F;b612foundation.org&#x2F;" rel="nofollow">https:&#x2F;&#x2F;b612foundation.org&#x2F;</a>
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gwern超过 5 年前
I did something similar last year with <a href="https:&#x2F;&#x2F;www.gwern.net&#x2F;Long-Bets" rel="nofollow">https:&#x2F;&#x2F;www.gwern.net&#x2F;Long-Bets</a> . The even-odds restriction is a major one, and I think sabotages all of LB&#x27;s goals. Why do prediction markets like PredictIt do more in a week or so than LB has done in almost two decades? It&#x27;s hard to say that LB has been more of a success in getting people to put their money where their mouth is or bringing more rigor to public discourse (compare how often PredictIt or other betting markets are cited in political analysis to how often LB is cited... ever).
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flixic超过 5 年前
The humany truth is that public bets, particularly long bets, are less about making profit and more about stating your view boldly and publicly. Within this context opportunity costs barely matter.
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joosters超过 5 年前
It seems a bit limiting that they only deal with equal stakes&#x2F;odds, i.e. we both bet $1000 for&#x2F;against an event. Allowing for variable odds would make the deal better for events which you had less confidence in, solving the problem highlighted.
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blazespin超过 5 年前
Binary options meets long bets, interesting idea, but illiquid Markets make lousy predictions
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dtjohnnyb超过 5 年前
is 7% a reasonable 90 year return? I would guess closer to 1-2% would be reasonable over that time frame, which puts you in the black at year 90 even at 90% confidence.
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