RE: The Crazy Robot's Rebellion
We wouldn’t pay much more to save 200,000 birds than we would to save 2,000 birds. Our willingness to pay does not scale with the size of potential impact. Instead of making decisions with first-grade math, we imagine a single drowning bird and then give money based on the strength of our emotional response to that imagined scenario. (Scope insensitivity, affect heuristic.)
People's willingness to pay depends mostly on their income. I don't understand why this is crazy.
UPDATED: Having read Nectanebo's reply, I am revising my original comment. I think if you have a lot of wasteful spending, then it does make you "crazy" if your amount is uncorrelated with the number of birds. On hearing, "Okay, it's really 200,000 birds," you should be willing to stop buying lattes and make coffee at home. (I'm making an assumption about values.) Eat out less. Etc. But if you have already done these things, then I don't see why your first number should change (at least if we're still talking about birds).
Not all of a person's money goes into one charity. A person can spend their money on many different things, and can choose how much to spend on each different thing. Think of willingness to pay to actually be a measure of how much you care. Basically, the bird situation is crazy because humans barely if at all feel a difference in terms of how much they give a damn between something that has one positive effect, and something that has 100x that positive effect!
To Luke: This person was reading about the biases you breifly outlined, and he ended up confused...
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