True, if Gandhi's other-regarding preferences are sufficiently different from Ted Bundy's self-regarding preferences, than Gandhi will be better off according to his total preferences if we maximize the sum of their total preferences instead of the sum of their self-regarding preferences.
Of course, all this only makes any sense if we're talking about an aggregation used by some other agent. Presumably Gandhi himself would not adopt an aggregation that makes him worse off according to his total preferences.
How do you distinguish between "selfish" and "non-selfish" utilities, though?
Someone who has both selfish and non-selfish utilities has to have some answer to this, but there are many possible solutions, and which solution you "should" use depends on what you care about. In the iterative convergence scenario you described in the original post, you implicitly assumed that the utilitarian agent already had a solution to this. After all, the agent started with some preferences before updating its utility function to account for the wellbeing of others. That makes it pretty easy, the agent could just declare that its preferences before the first iteration were its selfish preferences, and the preferences added in the first iteration were its non-selfish preferences, thus justifying stopping after one iteration, just as you would intuitively expect. Or maybe the agent will do something different (if it arrived at its preferences by some route other then starting with selfish preferences and adding in non-selfish preferences, then I guess it would have to do something different). There are A LOT of ways an agent could partition its preferences into selfish and non-selfish components. What do you want me to do? Pick one and tell you that it's the correct one? But then what about all the agents that partition their preferences into selfish and non-selfish components in a completely different manner that still seems reasonable?
Thought of this after reading the discussion following abcd_z's post on utilitarianism, but it seemed sufficiently different that I figured I'd post it as a separate topic. It feels like the sort of thing that must have been discussed on this site before, but I haven't seen anything like it (I don't really follow the ethical philosophy discussions here), so pointers to relevant discussion would be appreciated.
Let's say I start off with some arbitrary utility function and I have the ability to arbitrarily modify my own utility function. I then become convinced of the truth of preference utilitarianism. Now, presumably my new moral theory prescribes certain terminal values that differ from the ones I currently hold. To be specific, my moral theory tells me to construct a new utility function using some sort of aggregating procedure that takes as input the current utility functions of all moral agents (including my own). This is just a way of capturing the notion that if preference utilitarianism is true, then my behavior shouldn't be directed towards the fulfilment of my own (prior) goals, but towards the maximization of preference satisfaction. Effectively, I should self-modify to have new goals.
But once I've done this, my own utility function has changed, so as a good preference utilitarian, I should run the entire process over again, this time using my new utility function as one of the inputs. And then again, and again... Let's look at a toy model. In this universe, there are two people: me (a preference utilitarian) and Alice (not a preference utilitarian). Let's suppose Alice does not alter her utility function in response to changes in mine. There are two exclusive states of affairs that can be brought about in this universe: A and B. Alice assigns a utility of 10 to A and 5 to B, I initially assign a utility of 3 to A and 6 to B. Assuming the correct way to aggregate utility is by averaging, I should modify my utilities to 6.5 for A and 5.5 for B. Once I have done this, I should again modify to 8.25 for A and 5.25 for B. Evidently, my utility function will converge towards Alice's.
I haven't thought about this at all, but I think the same convergence will occur if we add more utilitarians to the universe. If we add more Alice-type non-utilitarians there is no guarantee of convergence. So anyway, this seems to me a pretty strong argument against utilitarianism. If we have a society of perfect utilitarians, a single defector who refuses to change her utility function in response to changes in others' can essentially bend the society to her will, forcing (through the power of moral obligation!) everybody else to modify their utility functions to match hers, no matter what her preferences actually are. Even if there are no defectors, all the utilitarians will self-modify until they arrive at some bland (value judgment alert) middle ground.
Now that I think about it, I suspect this is basically just a half-baked corollary to Bernard Williams' famous objection to utilitarianism:
Anyway, I'm sure ideas of this sort have been developed much more carefully and seriously by philosophers, or even other posters here at LW. As I said, any references would be greatly appreciated.