I think this is correct as a conditional statement, but I don’t think one can deduce the unconditional implication that attempting to price some externalities in domains where many externalities are difficult to price is generally bad.
It’s not “attempting to price some externalities where many are difficult to price is generally bad”, it’s “attempting to price some externalities where the difficult to price externalities on the other side is bad”. Sometimes the difficulty of pricing them means it’s hard to know which side they primarily lie on, but not necessarily.
The direction of legible/illegible externalities might be uncorrelated on average, but that doesn’t mean that ignoring the bigger piece of the pie isn’t costly. If I offer “I’ll pay you twenty dollars, and then make up some rumors about you which may or may not be true and may greatly help or greatly harm your social standing”, you don’t think “Well, the difficult part to price is a wash, but twenty dollars is twenty dollars”
you can just directly pay the person who stops the shooting,
You still need a body.
Sure, you can give people like Elisjsha Dicken a bunch of money, but that’s because he actually blasted someone. If we want to pay him $1M per life he saved though, how much do we pay him? We can’t simply go to the morgue and count how many people aren’t there. We have to start making assumptions, modeling the system, and paying out based on our best guesses of what might have happened in what we think to be the relevant hypothetical. Which could totally work here, to be clear, but it’s still a potentially imperfect attempt to price the illegible and it’s not a coincidence that this was left out of the initial analysis that I’m responding.
But what about the guy who stopped a shooting before it began, simply by walking around looking like the kind of guy that would stop an a spree killer before he accomplished much? What about the good role models in the potential shooters life that lead him onto the right track and stopped a shooting before it was ever planned? This could be ten times as important and you wouldn’t even know without a lot of very careful analysis. And even then you could be mistaken, and good luck creating enough of a consensus on your program to pay out what you believe to be the appropriate amount to the right people who have no concrete evidence to stand on. It’s just not gonna work.
I don’t agree that most of the benefits of AI are likely to be illegible. I expect plenty of them to take the form of new consumer products that were not available before, for example.
Sure, they’ll be a lot of new consumer products and other legible stuff, but how are you estimating the amount of illegible stuff and determining it to be smaller? That’s the stuff that by definition is going to be harder to recognize so you can’t just say “all of the stuff I recognize is legible, therefore legible>>illegible”.
For example, what’s the probability that AI changes the outcome of future elections and political trajectory, is it a good or bad change, and what is the dollar value of that compared to the dollar value of ChatGPT?
It’s not “attempting to price some externalities where many are difficult to price is generally bad”, it’s “attempting to price some externalities where the difficult to price externalities on the other side is bad”. Sometimes the difficulty of pricing them means it’s hard to know which side they primarily lie on, but not necessarily.
The direction of legible/illegible externalities might be uncorrelated on average, but that doesn’t mean that ignoring the bigger piece of the pie isn’t costly. If I offer “I’ll pay you twenty dollars, and then make up some rumors about you which may or may not be true and may greatly help or greatly harm your social standing”, you don’t think “Well, the difficult part to price is a wash, but twenty dollars is twenty dollars”
You still need a body.
Sure, you can give people like Elisjsha Dicken a bunch of money, but that’s because he actually blasted someone. If we want to pay him $1M per life he saved though, how much do we pay him? We can’t simply go to the morgue and count how many people aren’t there. We have to start making assumptions, modeling the system, and paying out based on our best guesses of what might have happened in what we think to be the relevant hypothetical. Which could totally work here, to be clear, but it’s still a potentially imperfect attempt to price the illegible and it’s not a coincidence that this was left out of the initial analysis that I’m responding.
But what about the guy who stopped a shooting before it began, simply by walking around looking like the kind of guy that would stop an a spree killer before he accomplished much? What about the good role models in the potential shooters life that lead him onto the right track and stopped a shooting before it was ever planned? This could be ten times as important and you wouldn’t even know without a lot of very careful analysis. And even then you could be mistaken, and good luck creating enough of a consensus on your program to pay out what you believe to be the appropriate amount to the right people who have no concrete evidence to stand on. It’s just not gonna work.
Sure, they’ll be a lot of new consumer products and other legible stuff, but how are you estimating the amount of illegible stuff and determining it to be smaller? That’s the stuff that by definition is going to be harder to recognize so you can’t just say “all of the stuff I recognize is legible, therefore legible>>illegible”.
For example, what’s the probability that AI changes the outcome of future elections and political trajectory, is it a good or bad change, and what is the dollar value of that compared to the dollar value of ChatGPT?