Robber approaches you promising you lots of utility in exchange of giving him $1. The probability he is not lying is extremely low, yet the utility is extremely high, so you give him $1.
The above reasoning has one trivial flaw. How do you know that there isn’t a person testing your virtues, which would actually give you lots of utility if you refused to give this person $1? What makes you think that receiving lots of utility when you succumb to the robber is more probable than receiving lots of utility if you stand up to the robber?
My understanding of Pascal Mugging is following:
Robber approaches you promising you lots of utility in exchange of giving him $1. The probability he is not lying is extremely low, yet the utility is extremely high, so you give him $1.
The above reasoning has one trivial flaw. How do you know that there isn’t a person testing your virtues, which would actually give you lots of utility if you refused to give this person $1? What makes you think that receiving lots of utility when you succumb to the robber is more probable than receiving lots of utility if you stand up to the robber?