Vaniver comments on The Cambist and Lord Iron: A Fairy Tale of Economics - Less Wrong

33 Post author: Alicorn 19 December 2010 02:05AM

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Comment author: Vaniver 26 December 2010 09:32:06PM 0 points [-]

But an infinitely large punishment for selling and gaining a finite good means that you are infinitely badly off.

Only if you take the option of selling it? Keep in mind the original conclusion we're going for- "a punishment that completely prevents me from selling my trumpet hijacks my revealed preference for keeping my trumpet, setting it at infinity."

(For the story's example, the punishments are finite- the prisoners could sneak in unhealthy foods or avoid exercise- and so we're just interested in the weaker statement that the punishment dramatically increases the prisoner's revealed preferences for eating healthily and exercising.)

Comment author: gwern 27 December 2010 12:14:44AM 0 points [-]

But surely one's revealed preference for the trumpet wouldn't be infinity, say, but some small number like a million? So the infinity is excessive.

Comment author: Vaniver 27 December 2010 06:13:56PM 0 points [-]

Like said in the grandparent, for a finite punishment the value would be finitely increased. But I don't see an issue with saying complete prevention results in infinite value, knowing that's an idealized case.