There would need to be sufficient market depth to pay someone to act. So we couldn’t just publish $0.01 bets on everything and watch the town burn. “Coasian” solutions like this are limited by transaction costs.
In practice, the owner of the datacenter would need to either eliminate the externality or watch it burn. If the datacenter is worth more than its external cost, then they can reimburse their victims or pay for cleanup. If the revenue from the datacenter is less than its external costs, then it’s a net loss for society and ought to be shut down.
There would need to be sufficient market depth to pay someone to act.
If such a platform existed so many people would bet for “fire” that there wouldn’t be depth, but if you take a look around lemmy you can see some people hate AI so much they would do it anyways.
I assume you’re talking about Lemmings betting against fire because they want data centers to burn.
If there’s a lot of people betting, then why wouldn’t there be depth?
If the data center is causing measurable harm, then a victim losing the bet against fire is still a net gain. If you’re acting rationally, then you can afford to do it repeatedly — like insurance. But if people are just flushing their money down the toilet because they hate something and gain nothing from its loss, then they’ll go broke.
There would need to be sufficient market depth to pay someone to act. So we couldn’t just publish $0.01 bets on everything and watch the town burn. “Coasian” solutions like this are limited by transaction costs.
In practice, the owner of the datacenter would need to either eliminate the externality or watch it burn. If the datacenter is worth more than its external cost, then they can reimburse their victims or pay for cleanup. If the revenue from the datacenter is less than its external costs, then it’s a net loss for society and ought to be shut down.
If such a platform existed so many people would bet for “fire” that there wouldn’t be depth, but if you take a look around lemmy you can see some people hate AI so much they would do it anyways.
I assume you’re talking about Lemmings betting against fire because they want data centers to burn.
If there’s a lot of people betting, then why wouldn’t there be depth?
If the data center is causing measurable harm, then a victim losing the bet against fire is still a net gain. If you’re acting rationally, then you can afford to do it repeatedly — like insurance. But if people are just flushing their money down the toilet because they hate something and gain nothing from its loss, then they’ll go broke.