Nick, can you explain how that happens with bounded utility functions? I was thinking basically something like this: if your maximum utility is 1000, then something that has a probability of one in a million can’t have a high expected value or disvalue, because it can’t be multiplied by more than 1000, and so the expected value can’t be more than 0.001.
This seems to me the way humans naturally think, and the reason that sufficiently low-probability events are simply ignored.
Nick, can you explain how that happens with bounded utility functions? I was thinking basically something like this: if your maximum utility is 1000, then something that has a probability of one in a million can’t have a high expected value or disvalue, because it can’t be multiplied by more than 1000, and so the expected value can’t be more than 0.001.
This seems to me the way humans naturally think, and the reason that sufficiently low-probability events are simply ignored.