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Eliezer_Yudkowsky comments on Bayesian Flame - Less Wrong
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I am convinced in full generality that being offered the option of a bet can only provide utility >= 0. So if the punch line is 'insuficiently constrained rationality' then yes, the joke is on me!
And yes, I suspect trying to get my head around that paper would (will) be rather costly! I'm a goddam programmer. :P