Obviously, one solution is to actually construct a utility function in money, and apply it rigorously to all decisions. Linear well below your net worth, and logarithmic above it is usually a good place to start.
Are you talking about changes in wealth, or states of total net worth?
Also, if you are an extreme altruist, your utility potential will be an approximately linear function of your state of total net worth.
I was talking about changes in wealth—states would just be a straightforward logarithm.
And yes, if you’re giving to charity, your marginal utility on cash should just be whatever utilons the charity is purchasing, which shouldn’t change much as you get wealthier
I can see why you suggest it, but straightforward logarithm isn’t quite going to work, because of the behaviour around zero. I don’t have a better suggestion off the top of my head.
Are you talking about changes in wealth, or states of total net worth?
Also, if you are an extreme altruist, your utility potential will be an approximately linear function of your state of total net worth.
I was talking about changes in wealth—states would just be a straightforward logarithm.
And yes, if you’re giving to charity, your marginal utility on cash should just be whatever utilons the charity is purchasing, which shouldn’t change much as you get wealthier
I can see why you suggest it, but straightforward logarithm isn’t quite going to work, because of the behaviour around zero. I don’t have a better suggestion off the top of my head.