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Vlad Tarko
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The formulae from (3) onward assume that A has telepathic abilities with respect to B's utility... You need to include some model of the "intentional stance" by which A estimates B's utility. For example, Adam Smith discussed "sympathy" and assumed something like u_B(x_B) = u_A(x_B), i.e. putting yourself in somebody else's shoes.
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Aug 10, 2013