Omicron - How does it change Covid risk and what should we do about it?
[Crossposted from https://firstsigma.substack.com/p/omicron with a few small updates to the estimates from the last couple days] My thoughts on how Omicron affects Covid risk and what we should do about it. In particular, I wanted to address some common questions I've seen along the lines of "since it's less severe...
Note that it says "the degree of uncertainty remaining is insufficient to render the market interesting" AND <5% or >95%.
This seems reasonable to me. Note that degree varies by market - an absolute probability by itself wouldn't be a good rule. If it was already very unlikely (e.g. "Will a nuclear bomb be detonated in NYC this year"), then for the degree of uncertainty to become uninteresting it has to become much more unlikely in a way that rules out most of the previous probability space.
I've thought about this type of case a decent amount, and I think a perfectly reasonable approach is to resove early when the uncertainty is almost entirely... (read more)