SolveIt comments on What's the right way to think about how much to give to charity? - Less Wrong

10 Post author: irrational 24 September 2014 09:42PM

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Comment author: SolveIt 26 September 2014 02:59:51PM 0 points [-]

What does it mean for humans to have logarithmic utility for money? Do we have a measurable quantitative concept of utility that's natural enough that it would be silly to pull stuff like "utility2= log utility1, now humans have linear utility2 for money"!

Comment author: owencb 28 September 2014 05:29:03PM 4 points [-]

The main ways to get a handle on this are to use subjective well-being scores (which is what those graphs do, and is somewhat questionable as to whether it's a natural unit), or to ask people about trade-offs or gambles they'd make (to elicit preferences as in a vN-M utility function). Both approaches lead to data saying it's approximately logarithmic, and there are also some theoretical reasons to think this is roughly right.