It's meaningfultosaythatthisthisoutcomeorthatoutcomeismoreorlesslikelyby a bit, orbuy a lottoorwhateverButpeopledidn't have a reallygoodexplanationofhowthatallworkeduntilwehadprobabilitytheory, right?
Wedidn't Itwasn't assistant, right?
Right.
Andlikepracticallyspeaking, youoftencan't dothefullprobabilitytheorystuffinyourheadfor a gameofcards, especiallywhenyou'retryingtoreadpeople's facesandlikestuffthat's veryhardtoquantify.
Likeintherealworld, observationsdonotformanorderlyqueueandcomeatyouoneat a timeandgiveyouenoughtimeaftereachonetofullyintegratetheconsequencesofeachobservation.
Thisislikeanimportantthingforactuallygettingbyintheworldbecause, as I say, likeobservationsdon't justlineupandwaitforyoutoreasonalloftheirconsequencesthrough.
Soyetyoucouldyoucouldsay, ififyouaredoingyourprobabilitytheorystuffinsuch a waythattherearenoDutchbooksthatcanbemadeagainstyou, thenthat's goodandyou'redoingwell.
Andsowhenyouweretalkingaboutadvanced A I systemsweregonnaIt's like a goodassumptiontomakethatthey'reatleastgonnatrytoknow, haveanyDutchbooksagainsttheminthewaytheydotheirability.
Thatwouldbe a systemoflikeassigningprobabilitiestostatements, logicalstatementsinandthenbeingableto, likeupdatethoseovertime.
Soonethingyouwouldwantisyouwouldwantittoconverge, whichjustmeansifyou'rethinkingabout a logicalstatement, youmightthinkofsomethingthatmakesitseemmorelikely.
AndthenthinkofsomethingelselikeOh, no, Actually, it's lessitshouldbelesslikely.
Insomesense, anotheroneisthatitshouldnever, um, thisone's like a bitcontroversial, butitseemsreasonabletomethatitshouldneverresignprobabilityonetosomethingwhichisnotapprovedorthatcan't beapproved.
Itshould, attheendofit, youshouldendupwith, like, a validprobabilitydistributionoverallofyourstuffthere, criterionthatthey'vecomeupwith, whichistheequivalentoff.
TherearenoDutchbooksisbasedonthisalgorithmthatthey'vemadewhich, uh, satisfiesthiscriterionandthereforehas a wholebunchofthesenicepropertiesthatyouwouldwant a logicalinductedtohave.
Andifyou'reifyou're a personwhoisinterestedininterestingalgorithms, I wouldreallyrecommendcheckingoutthepaper.
It's verytechnicalbecausewedon't havetimeinthisvideo, and I maygointoitbeeperonmychannelatsomepoint, if I evercometoactuallyunderstandit, which, tobehonest, I don't fullyrightnow.
Um, butit's basedaroundtheideaof a predictionmarket, whichissupercoolthing.
Um, butthethingthat's coolisyoucouldbuild a bitlikethisisjust a pieceofpaperwithstuffwrittenonit, right?
Andthesedays, it's noteven a pieceofpaper.
Inprinciple, youcanwriteanythingonthere, right?
Sowhatifyouwrote a contractthatsaid, I promisetopay £100 ifsuchandsuchholeswinstheGrandNationalandzerootherwiseandthenthat's onthemarketandpeoplecombinedsellitright.
Butlikeinprinciple, thisis a reallybeautifulwayofeffectivelydoingdistributedcomputingwhereyouhaveeverybodyisdoingtheirowncomputationandthenyou'reaggregatingthem.
Sothat's whatlogicalinductiondoesitlike, simulates a Predictionmarket, whereallofthecontractsare a logicalstatement.
I thinkinthiswayit's not $100 it's $1.
Soit's tradingat $1 thenit's forsure.
It's It's certainsaying, Youknow, thisiscurrentlytradingat 60 cents, and I thinkit's moremorethan 60% likelytobetrue, so I'llbuysomeonthatseemslike a goodinvestment.
Sosomeoftheseprogramswillgetrichbyjustsaying, Oh, I noticethatthisstatementfor A and B has a probabilitythat's actuallyhigherthantheprobabilityofbeing.
So I'm gonnasellthat, youknow, I'm gonna I'm gonnabuysomebetoraise, youknow, I'm gonna, likerespondtothatin a waythatmakesmemoney.