orthonormal comments on Is risk aversion really irrational ? - Less Wrong

41 Post author: kilobug 31 January 2012 08:34PM

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Comment author: orthonormal 01 February 2012 03:21:49AM 5 points [-]

he's risking his absolute nightmare, his equivalent of the worst pain possible : no more paperclips, not even a single tiny one

You ruin the thought experiment by writing as if the difference between 0 and 1 paperclips is much worse than the difference between 1 and 4, in violation of the utility function you declared.

Comment author: kilobug 01 February 2012 11:36:08AM 2 points [-]

That was a pun to add some life to the experiment and make it less "boring" or "cold", but you're right that is just false. I changed it for a much lighter wording.

Comment author: Solvent 01 February 2012 11:22:16AM 1 point [-]

Yeah, the article would be far better if that were fixed. Utility functions are identical if you add any constant to them, or any positive multiplier.

Comment author: Dan_Moore 01 February 2012 04:49:09PM 0 points [-]

Assuming Clippy can't owe paperclips (i.e., own a negative number), 0 paperclips minimizes his utility. So, I think the original sentence was OK, albeit overwrought.

Comment author: wedrifid 02 February 2012 02:36:22AM 5 points [-]

Assuming Clippy can't owe paperclips (i.e., own a negative number), 0 paperclips minimizes his utility. So, I think the original sentence was OK, albeit overwrought.

Orthonormal is correct based on the very nature of 'utility'. The difference between 1 and 4 utility is three times worse than the difference between 0 and 1. Every single time and no matter what. That '0' or a minimum is involved is irrelevant. You cannot get diminishing marginal utility on utility itself.

The place for assigning extra importance to low values and zero is in the paperclip to utility translation and not the evaluation of how much you care about the utility.