I didn't mean to imply nonlinear functions are bad. It's just how humans are.
Picking gambles 1A and 2B, on the other hand, cannot be described by any utility function.
Prospect Theory describes this and even has a post here on lesswrong. My understanding is that humans have both a non-linear utility function as well as a non-linear risk function. This seems like a useful safeguard against imperfect risk estimation.
[Insurance is] not a Dutch Book in the usual sense: it doesn't guarantee either side a profit.
If you setup your books correctly, then it is guaranteed. A dutch book doesn't need to work with only one participant, and in fact many dutch books only work with on populations rather than individuals, in the same way insurance only guarantees a profit when properly spread across groups.
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"It will no longer be correct to say that something is (a color or similar property). One must say it "seems" a color, as well as to whom. Not "Snow is white", rather, "Snow seems white to me"."
I´d say this is not needed, when people say "Snow is white" we know that it really means "Snow seems white to me", so saying it as "Snow seems white to me" adds length without adding information.
My first fixes to english would be to unite spoken and written english with same letters always meaning same sounds, and getting rid of adding "the" to places where it does not add information (where sentence would mean same even without "the").
Ah, but imagine we're all-powerful reformists that can change absolutely anything! In that case, we can add a really simple verb that means "seems-to-me" (let's say "smee" for short) and then ask people to say "Snow smee white".
Of course, this doesn't make sense unless we provide alternatives. For instance, "er" for "I have heard that", as in "Snow er white, though I haven't seen it myself" or "The dress er gold, but smee blue."