This is quite different from the case I would make for donor lotteries. The argument I would make is just that figuring out what to do with my money takes a bunch of time and effort. If I had 10 times the amount of money I could just scale up all of my donations by 10 times and the marginal utility would probably be about the same. So I would happily take a 10% chance to 10x my money and a 90% chance to be zero and otherwise follow the same strategy because in expectation the total good done is the same but the effort invested has 10% the cost, as I won’t bother doing it if I lose.
Further, it now makes more sense to invest way more effort, but that’s just a fun bonus. I can still just give the money to EA funds or whatever if that beats my personal judgement, but I can take a bit more time to look into this, maybe make some other grants if I prefer etc. And so likewise, being 100 or 1000x leveraged is helpful and justifies even more efforts in the world where I win.
Notably this argument works regardless of who else is participating in the lottery. if I just went to Vegas and bet a bunch of my money on roulette that gets a similar effect. Donor lotteries are just a useful way of doing this where everyone gets this benefit of a small chance of massively increasing their money and a high chance of losing it all, and it’s zero expected value unlike roulette
Our crux is likely around how much research a lottery winner would need to conduct to outperform an EA Funds manager.
I’m very skeptical that a randomly selected EA can find higher impact grant opportunities than an EA Funds manager in an efficient way. I’d find it quite surprising (and a significant indictment of the EA Funds model) if a random EA can outperform a Fund manager (specifically selected for their competence in this area) after putting in a dedicated week of research (say 40 hours). I’d find that a lot more plausible if a lottery winner put in much more time, say a few dedicated months. But then you’re looking at something like 500 hours of dedicated EA time, and you need a huge increase in expected impact over EA Funds to justify that investment for a grant that’s probably in the $100-200k range.
I do agree that a lottery winner can always choose to give through EA Funds which creates some option value, but I worry about a) winners overestimating the own grantmaking capabilities; b) the time investment of comparing EA Funds to other options; and c) the lack of evidence that any lottery winners are actually deferring to EA Funds (maybe just an artefact of not knowing where lottery winners have given since 2019).
This is quite different from the case I would make for donor lotteries. The argument I would make is just that figuring out what to do with my money takes a bunch of time and effort. If I had 10 times the amount of money I could just scale up all of my donations by 10 times and the marginal utility would probably be about the same. So I would happily take a 10% chance to 10x my money and a 90% chance to be zero and otherwise follow the same strategy because in expectation the total good done is the same but the effort invested has 10% the cost, as I won’t bother doing it if I lose.
Further, it now makes more sense to invest way more effort, but that’s just a fun bonus. I can still just give the money to EA funds or whatever if that beats my personal judgement, but I can take a bit more time to look into this, maybe make some other grants if I prefer etc. And so likewise, being 100 or 1000x leveraged is helpful and justifies even more efforts in the world where I win.
Notably this argument works regardless of who else is participating in the lottery. if I just went to Vegas and bet a bunch of my money on roulette that gets a similar effect. Donor lotteries are just a useful way of doing this where everyone gets this benefit of a small chance of massively increasing their money and a high chance of losing it all, and it’s zero expected value unlike roulette
Our crux is likely around how much research a lottery winner would need to conduct to outperform an EA Funds manager.
I’m very skeptical that a randomly selected EA can find higher impact grant opportunities than an EA Funds manager in an efficient way. I’d find it quite surprising (and a significant indictment of the EA Funds model) if a random EA can outperform a Fund manager (specifically selected for their competence in this area) after putting in a dedicated week of research (say 40 hours). I’d find that a lot more plausible if a lottery winner put in much more time, say a few dedicated months. But then you’re looking at something like 500 hours of dedicated EA time, and you need a huge increase in expected impact over EA Funds to justify that investment for a grant that’s probably in the $100-200k range.
I do agree that a lottery winner can always choose to give through EA Funds which creates some option value, but I worry about a) winners overestimating the own grantmaking capabilities; b) the time investment of comparing EA Funds to other options; and c) the lack of evidence that any lottery winners are actually deferring to EA Funds (maybe just an artefact of not knowing where lottery winners have given since 2019).