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80,000 Hours Podcast cover image

#48 - Brian Christian on better living through the wisdom of computer science

80,000 Hours Podcast

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Optimizing Auctions for Computational Kindness

Optimizing auctions for computational kindness involves framing problems in a computationally kind or ethical framework to minimize the cognitive burden on participants. For instance, transitioning from a first price auction to a second price or victory auction relieves buyers from the strategic burden of estimating competitor bids and encourages them to bid their true perceived value. Despite the shift in auction type, revenue and the winning outcome remain consistent. Such optimizations, like Google's ad auction, prioritize computational kindness by simplifying the bidding process and fostering long-term relationships with clients.

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