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cousin_it comments on Saturating utilities as a model - Less Wrong
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This seems similar to lexicographic preferences. Also search for hyperreal or surreal utility functions on LW, there have been several discussions.
Yep, that was the inspiration - a 'soft' lexicographic preference. We very often use lexicographic preferences in software because they have neat property - you can always insert a value between other two. It is also easy to discard model of lexicographic preferences due to unnatural 'strictness' of the preference.