Agreed – the arguments against diversification don’t take into account the fact that individuals’ choices will be more highly correlated if they use similar decision processes. In order to make an optimal allocation decision you would need to estimate the total amount of money being donated by people who are using an algorithm similar to yours and decide as though you were allocating the entire amount. Sounds familiar, eh?
Agreed – the arguments against diversification don’t take into account the fact that individuals’ choices will be more highly correlated if they use similar decision processes. In order to make an optimal allocation decision you would need to estimate the total amount of money being donated by people who are using an algorithm similar to yours and decide as though you were allocating the entire amount. Sounds familiar, eh?