The words "utility function" here are usually used in two quite different meanings.
In meaning 1 they are specific and refer to the VNM utility function which gjm talked about. However, as he correctly mentioned, "humans certainly don't behave exactly as if we have utility functions, at least not sensible ones". Note: specifically VNM utility functions.
In meaning 2 these words are non-specific and refer to an abstract concept of that what you would want and would choose if given the opportunity. For example if you want to talk about incentives but do not care about what precisely would incentivise an agent, you might abstract his actual desires out of the picture and talk about his utility in general. This utility is not the VNM utility. It's just a convenient placeholder, a variable that we (usually) do not need the value of.
nothing I've read seems to hold up when I try to apply it to a concrete use case.
That's because humans don't have VNM utility functions and even if they did, you wouldn't be able to calculate your own on the fly.
trying to build a utility TABLE for major, point-in-time life decisions
What would it look like?
In the home purchase decision use case, I'm currently working with a "utility table" where the columns list serious home purchase candidates, and one column is reserved for my current home as a baseline. (The theory there is I know what my current home feels like, so I can map abstract attribute scores to a tangible example. Also, if a candidate new home fails to score better overall than my current home, there's no sense in moving.)
The rows in the utility table list various functions or services that a home with its land might perform and vario...
Hi, do you read the LessWrong website, but haven't commented yet (or not very much)? Are you a bit scared of the harsh community, or do you feel that questions which are new and interesting for you could be old and boring for the older members?
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