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 just explained. There is no situation involving 3^^^3 people which will ever have a high probability. Telling me I need to adopt a utility function which will handle such situations well is trying to mug me, because such situations will never come up.
Also, I don't care about the difference between 3^^^^^3 people and 3^^^^^^3 people even if the probability is 100%, and neither does anyone else. So it isn't true that I just want to stop caring about low probability events. My utility is actually bounded. That's why I suggest using a bounded utility function, like everyone else does.
Really? No situation? Not even if we discover new laws of physics that allow us to have infinite computing power?
We are talking about utility functions. Probability is irrelevant. All that matters for the utility function is that if the situation came up, you would care about it.
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