I don't see how this is a paradox at all.
Scenario (1) creates 100 years of utility, minus the death of one person. Scenario (2) creates 100 years of utility, plus the birth of one person, minus the death of two people. We can set them equal to each other and solve for the variables, you should prefer scenario (1) to scenario (2) iff the negative utility caused by a death is greater than the utility caused by a birth. Imagine that a child was born, and then immediately died ten minutes later. Is this a net positive or negative utility? I vote negative and I think most people agree; death outweighs birth.
(As an interesting sidenote, if we lived in a world where the value of Birth outweighed the value of Death, I think most of us would happily change our preference ordering. Eg, If we lived in the Children of Men world, we'd go with scenario (2) because a new birth is more important than a new death. Or if we lived in a universe where there really was a heaven, we'd go with scenario (2) as well because the value of death would be near zero.)
Things get less simple when we take into account the fact that all years and deaths don't generate equal (dis)utility. The disutility caused by Death(newborn) != Death(10 year old) != Death (20 year old) != Death (80 year old) != Death (200 year old). Similarly, the utility generated by a child's 3rd->4th year is nowhere near equivalent to the utility of someone's 18th->19th year. I would assume the external utility generated by someone 101st->200th year to far, far outweigh the external utility generated by the 1st->100th year (contributing to the world by being a valuable source of wisdom). By any reasonable calculations it seems that net utility in scenario (1) significantly outweighs the net utility of scenario (2).
Different people might have different expected values for the utility and disutility of years/deaths, and thus get differing results. But it seems if you had sufficiently accurate data with which to calculate expected utility, you could actually determine what those utilities are and they wouldn't come out equal. However, just because something is incredibly hard to calculate doesn't mean you throw your hands up and say that they must be equal. You do what you always do with insufficient information: approximate as best you can, double check your numbers, and hope you don't miss anything.
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From my buddy, a research psychologist:
"Oh yeah, those are a big issue. They're a big problem for medical shit and business shit. Less so for university stuff, for obvious reasons. Even the most basic recruitment agency knows about 'em. "