Complex sentence: In other words, since individuals receive greater utility from an extra dollar when they are poor and less utility when comparatively rich, the approach is to therefore "adjust" the weight assigned to the various outcomes ("states") correspondingly.
Split into simpler sentences: In other words, individuals receive greater utility from an extra dollar when they are poor and less utility when comparatively rich. The approach is therefore to "adjust" the weight assigned to the various outcomes ("states") correspondingly.