Summary: the problem with Pascal's Mugging arguments is that, intuitively, some probabilities are just too small to care about. There might be a principled reason for ignoring some probabilities, namely that they violate an implicit assumption behind expected utility theory. This suggests a possible approach for formally defining a "probability small enough to ignore", though there's still a bit of arbitrariness in it.
I agree that bounded utility implies that utility is not linear in human lives or in other similar matters.
But I have two problems with saying that we should try to get this property. First of all, no one in real life actually acts like it is linear. That's why we talk about scope insensitivity, because people don't treat it as linear. That suggests that people's real utility functions, insofar as there are such things, are bounded.
Second, I think it won't be possible to have a logically coherent set of preferences if you do that (at least combined with your proposal), namely because you will lose the independence property.
I agree that, insofar as people have something like utility functions, those are probably bounded. But I don't think that an AI's utility function should have the same properties as my utility function, or for that matter the same properties as the utility function of any human. I wouldn't want the AI to discount the well-being of me or my close ones simply because a billion other people are already doing pretty well.
Though ironically given my answer to your first point, I'm somewhat unconcerned by your second point, because humans probably don't have cohe... (read more)