Ah but VCs benefit from the ergodicity of the startup founders! From the perspective of the founder, its a non-ergodic situation. Its better to make Kelly bets instead if you prefer to not fall into gambler’s ruin, given whatever definition of the real world situation maps onto the abstract concept of being ‘ruined’ here.
It usually pays to have a better causal model of reality than relying on what X person says to inform your actions.
Can you think of anyone who has changed history who wasn’t a little overconfident?
It is advantageous to be friends with the kind of people who do things and never give up.
I think I do things and never give up in general, while I can be pessimistic about specific things and tasks I could do. You can be generally extremely confident in yourself and your ability to influence reality, while also being specifically pessimistic about a wide range of existing possible things you could be doing.
I’m not certain that this is the optimal strategy we have for dealing with such environments, and note that systematic self-delusion also leaves you (and the other people using a similar strategy to coordinate) vulnerable to risks that do not take into account your self-delusion. This mainly includes existential risks such as misaligned superintelligences, but also extinction-level asteroids.
Its a pretty complicated picture and I don’t really have clean models of these things, but I do think that for most contexts I interact in, the long-term upside of having better models of reality is significantly higher compared to the benefit of systematic self-delusion.
I expect that the more your beliefs track reality, the better you’ll get at decision making, yes.
Ah but VCs benefit from the ergodicity of the startup founders! From the perspective of the founder, its a non-ergodic situation. Its better to make Kelly bets instead if you prefer to not fall into gambler’s ruin, given whatever definition of the real world situation maps onto the abstract concept of being ‘ruined’ here.
It usually pays to have a better causal model of reality than relying on what X person says to inform your actions.
Survivorship bias.
I think I do things and never give up in general, while I can be pessimistic about specific things and tasks I could do. You can be generally extremely confident in yourself and your ability to influence reality, while also being specifically pessimistic about a wide range of existing possible things you could be doing.
Here’s a Nate post that provides his perspective on this specific orientation to reality that leads to a sort of generalized confidence that has social benefits.
I do think that systematic self-delusion seems useful in multi-agent environments (see the commitment races problem for an abstract argument, and Sarah Constantin’s essay “Is Stupidity Strength?” for a more concrete argument.
I’m not certain that this is the optimal strategy we have for dealing with such environments, and note that systematic self-delusion also leaves you (and the other people using a similar strategy to coordinate) vulnerable to risks that do not take into account your self-delusion. This mainly includes existential risks such as misaligned superintelligences, but also extinction-level asteroids.
Its a pretty complicated picture and I don’t really have clean models of these things, but I do think that for most contexts I interact in, the long-term upside of having better models of reality is significantly higher compared to the benefit of systematic self-delusion.