John_Maxwell_IV comments on Allais Hack -- Transform Your Decisions! - Less Wrong

18 Post author: MBlume 03 May 2009 10:37PM

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Comment author: John_Maxwell_IV 04 May 2009 01:25:10AM 2 points [-]

Obviously, one solution is to actually construct a utility function in money, and apply it rigorously to all decisions. Linear well below your net worth, and logarithmic above it is usually a good place to start.

Are you talking about changes in wealth, or states of total net worth?

Also, if you are an extreme altruist, your utility potential will be an approximately linear function of your state of total net worth.

Comment author: MBlume 04 May 2009 01:39:54AM 0 points [-]

I was talking about changes in wealth -- states would just be a straightforward logarithm.

And yes, if you're giving to charity, your marginal utility on cash should just be whatever utilons the charity is purchasing, which shouldn't change much as you get wealthier

Comment author: ciphergoth 04 May 2009 08:14:33PM 3 points [-]

I can see why you suggest it, but straightforward logarithm isn't quite going to work, because of the behaviour around zero. I don't have a better suggestion off the top of my head.