We extend de Finetti’s No-Dutch-Book Criterion to Gödel infinite-valued propositional logic.

The idea that beliefs may be stake-sensitive is explored. This is the idea that the strength with which a single, persistent belief is held may vary and depend upon what the believer takes to be at stake. The stakes in question are tied to the truth of the belief—not, as in Pascal’s wager and other cases, to the belief’s presence. Categorical beliefs and degrees of belief are considered; both kinds of account typically exclude the idea and treat belief as stake-invariant (...) , though an exception is briefly described. The role of the assumption of stake-invariance in familiar accounts of degrees of belief is also discussed, and morals are drawn concerning finite and countable Dutch book arguments. (shrink)

One guide to an argument's significance is the number and variety of refutations it attracts. By this measure, the Dutch book argument has considerable importance.2 Of course this measure alone is not a sure guide to locating arguments deserving of our attention—if a decisive refutation has really been given, we are better off pursuing other topics. But the presence of many and varied counterarguments at least suggests that either the refutations are controversial, or that their target admits of more than (...) one interpretation, or both. The main point of this paper is to focus on a way of understanding the Dutch Book argument (DBA) that avoids many of the well-known criticisms, and to consider how it fares against an important criticism that still remains: the objection that the DBA presupposes value-independence of bets. (shrink)

Dutch Book arguments have been presented for static belief systems and for belief change by conditionalization. An argument is given here that a rule for belief change which under certain conditions violates probability kinematics will leave the agent open to a Dutch Book.

We pose and resolve several vexing decision theoretic puzzles. Some are variants of existing puzzles, such as ‘Trumped’ (Arntzenius and McCarthy 1997), ‘Rouble trouble’ (Arntzenius and Barrett 1999), ‘The airtight Dutch book’ (McGee 1999), and ‘The two envelopes puzzle’ (Broome 1999). Others are new. A unified resolution of the puzzles shows that Dutch book arguments have no force in infinite cases. It thereby provides evidence that reasonable utility functions may be unbounded and that reasonable credence functions need not be countably (...) additive. The resolution also shows that when infinitely many decisions are involved, the difference between making the decisions simultaneously and making them sequentially can be the difference between riches and ruin. Finally, the resolution reveals a new way in which the ability to make binding commitments can save perfectly rational agents from sure losses. (shrink)

De Finetti would claim that we can make sense of a draw in which each positive integer has equal probability of winning. This requires a uniform probability distribution over the natural numbers, violating countable additivity. Countable additivity thus appears not to be a fundamental constraint on subjective probability. It does, however, seem mandated by Dutch Book arguments similar to those that support the other axioms of the probability calculus as compulsory for subjective interpretations. These two lines of reasoning can be (...) reconciled through a slight generalization of the Dutch Book framework. Countable additivity may indeed be abandoned for de Finetti's lottery, but this poses no serious threat to its adoption in most applications of subjective probability. Introduction The de Finetti lottery Two objections to equiprobability 3.1 The ‘No random mechanism’ argument 3.2 The Dutch Book argument Equiprobability and relative betting quotients The re-labelling paradox 5.1 The paradox 5.2 Resolution: from symmetry to relative probability Beyond the de Finetti lottery. (shrink)

If an agent believes that the probability of E being true is 1/2, should she accept a bet on E at even odds or better? Yes, but only given certain conditions. This paper is about what those conditions are. In particular, we think that there is a condition that has been overlooked so far in the literature. We discovered it in response to a paper by Hitchcock (2004) in which he argues for the 1/3 answer to the Sleeping Beauty problem. (...) Hitchcock argues that this credence follows from calculating her fair betting odds, plus the assumption that Sleeping Beauty’s credences should track her fair betting odds. We will show that this last assumption is false. Sleeping Beauty’s credences should not follow her fair betting odds due to a peculiar feature of her epistemic situation. (shrink)

The view that decision methods can only be justified by appeal to pragmatic considerations is defended. Pragmatic considerations are viewed as providing the underlying subject matter (“semantics”) of decision theories. It is argued that other approaches (e.g. justifying principles by appeal to obviousness, common usage, etc.) fail to provide grounds for a normative decision theory.It is argued that preferences that can lead to pragmatically adverse outcomes in a relevantly similar possible decision situation are pragmatically unsound, even if the decision situation (...) never arises. This rebuts several standard objections to money-pump and Dutch book arguments. However, because one can only appeal to relevantly similar decision situations in pragmatic arguments, these will have a less general scope than is often imagined. A conclusion is that pragmatic arguments for strong unconditional principles such as ‘always maximise expected utility!’ do not work. Pragmatic considerations can however be used to argue for conditional principles of the form ‘if conditions X, Y and Z are satisfied, then one ought to satisfy W’, where W need not follow logically from X, Y and Z.The notion of a sound pragmatic argument is defined in terms of particular notion of coherence, it is shown how this can be applied and how it handles problematic cases such as van Fraassen’s Dutch book for the principle of Reflection. (shrink)

In this unique monograph, based on years of extensive work, Chatterjee presents the historical evolution of statistical thought from the perspective of various approaches to statistical induction. Developments in statistical concepts and theories are discussed alongside philosophical ideas on the ways we learn from experience. -/- Suitable for researchers, lecturers and students in statistics and the history of science this book is aimed at those who have had some exposure to statistical theory. It is also useful to logicians and philosophers (...) due to the discussion of the problem of statistical induction in a wider philosophical context and the impact of developments of statistics on current thinking -/- The book is divided into two parts: -/- Part I (Chapters 1-4) entitled 'Perspective' deals with foundations and structure and Part II (Chapters 5-10), explores the 'History'. In Chapter 1 statistics is characterized as 'prolongation of induction', and its philosophical background is briefly reviewed. The special features of statistical induction, the two roles (as input and output) the theory of probability plays in it, and the different interpretations of probability are discussed in the next two chapters. Chapter 4 distinguishes broadly between four different approaches to statistical induction (behavioural, instantial, pro-subjective Bayesian, and purely subjective) that have been developed by taking different interpretations of probability as input and output, and considers their comparative characteristics, advantages and disadvantages . Part II traces the historical evolution of statistical thought in the perspective of the framework described in Part I and specifically considers the origin and development of the different concepts of probability and their application to the formulation of the different approaches to statistical induction. After some reference to the prehistory of the subject, the contributions made by the principal contributors in probability and statistics in the 17th-20th centuries are outlined (beginning with Cardano, Pascal, Fermat, Huygens and James Bernoulli and proceeding through Laplace and Gauss to Karl Pearson, Fisher, Neyman, E.S.Pearson,Wald, and their successors). Throughout, the emphasis is on concepts - factual details and technicalities are introduced only if they are unavoidable. (shrink)

Both Representation Theorem Arguments and Dutch Book Arguments support taking probabilistic coherence as an epistemic norm. Both depend on connecting beliefs to preferences, which are not clearly within the epistemic domain. Moreover, these connections are standardly grounded in questionable definitional/metaphysical claims. The paper argues that these definitional/metaphysical claims are insupportable. It offers a way of reconceiving Representation Theorem arguments which avoids the untenable premises. It then develops a parallel approach to Dutch Book Arguments, and compares the results. In each case (...) preferencedefects serve as a diagnostic tool, indicating purely epistemic defects. (shrink)

The most immediately appealing model for formal constraints on degrees of belief is provided by probability theory, which tells us, for instance, that the probability of P can never be greater than that of (P v Q). But while this model has much intuitive appeal, many have been concerned to provide arguments showing that ideally rational degrees of belief would conform to the calculus of probabilities. The arguments most frequently used to make this claim plausible are the so-called "Dutch Book" (...) arguments. (shrink)

What role, if any, does formal logic play in characterizing epistemically rational belief? Traditionally, belief is seen in a binary way - either one believes a proposition, or one doesn't. Given this picture, it is attractive to impose certain deductive constraints on rational belief: that one's beliefs be logically consistent, and that one believe the logical consequences of one's beliefs. A less popular picture sees belief as a graded phenomenon.

In order that a degree-of-belief function be coherent it is necessary and sufficient that it satisfy the axioms of probability theory. This theorem relies heavily for its proof on the two-valued sentential calculus, which emerges as a limiting case of a continuous scale of truth-values. In this "continuum of certainty" a theorem analogous to that instanced above is proved.

In his "From classical to constructive probability," Weatherson offers a generalization of Kolmogorov's axioms of classical probability that is neutral regarding the logic for the object-language. Weatherson's generalized notion of probability can hardly be regarded as adequate, as the example of supervaluationist logic shows. At least, if we model credences as betting rates, the Dutch-Book argument strategy does not support Weatherson's notion of supervaluationist probability, but various alternatives. Depending on whether supervaluationist bets are specified as (a) conditional bets (Cantwell), (b) (...) unconditional bets with graded payoffs (Milne), or (c) unconditional bets with ungraded payoffs(Dietz), supervaluationist probability amounts to (a) conditional probability of truth given a truth-value, (b) the expected truth-value, or (c) the probability of truth, respectively. It is suggested that for supervaluationist logic, the third option is the most attractive one, for (unlike the other options) it preserves respect for single-premise entailment. (shrink)

There is no set Δ of probability axioms that meets the following three desiderata: (1) Δ is vindicated by a Dutch book theorem; (2) Δ does not imply regularity (and thus allows, among other things, updating by conditionalization); (3) Δ constrains the conditional probability q(·,z) even when the unconditional probability p(z) (=q(z,T)) equals 0. This has significant consequences for Bayesian epistemology, some of which are discussed.

Van Fraassen (1989) argues that Inference to the Best Explanation is incoherent in the sense that adopting it as a rule for belief change will make one susceptible to a dynamic Dutch book. The present paper argues against this. A strategy is described that allows us to infer to the best explanation free of charge.

Hitchcock advances a diachronic Dutch Book argument (DDB) for a 1/3 answer to the Sleeping Beauty problem. Bradley and Leitgeb argue that Hitchcock’s DDB argument fails. We demonstrate the following: (a) Bradley and Leitgeb’s criticism of Hitchcock is unconvincing; (b) nonetheless, there are serious reasons to worry about the success of Hitchcock’s argument; (c) however, it is possible to construct a new DDB for 1/3 about which such worries cannot be raised.

The aim of this paper is to present and analyse Bruno de Finetti's view that the axiom of countable additivity of the probability calculus cannot be justified in terms of the subjective interpretation of probability. After presenting the core of the subjective theory of probability and the main de Finetti's argument against the axiom of countable additivity (the so called de Finetti's infinite lottery) I argue against de Finetti's view. In particular, I claim that de Finetti does not prove the (...) impossibility of using Dutch Book argument for the axiom of countable additivity. Consequently, we can use Dutch Book argument for the justification of the axiom of countable additivity and regard de Finetti's lottery as a special case when the axiom does not hold, or we can justify countable additivity by Dutch Book argument and reject de Finetti's lottery as irrational. The second strategy, represented especially by Jon Williamson, is much more compatible with the idea of subjective interpretation of probability. (shrink)

The aim of this paper is to present and analyse Bruno de Finetti's view that the axiom of countable additivity of the probability calculus cannot be justified in terms of the subjective interpretation of probability. After presenting the core of the subjective theory of probability and the main de Finetti's argument against the axiom of countable additivity (the so called de Finetti's infinite lottery) I argue against de Finetti's view. In particular, I claim that de Finetti does not prove the (...) impossibility of using Dutch Book argument for the axiom of countable additivity. Consequently, we can use Dutch Book argument for the justification of the axiom of countable additivity and regard de Finetti's lottery as a special case when the axiom does not hold, or we can justify countable additivity by Dutch Book argument and reject de Finetti's lottery as irrational. The second strategy, represented especially by Jon Williamson, is much more compatible with the idea of subjective interpretation of probability. (shrink)

Many philosophers have become worried about the use of standard real numbers for the probability function that represents an agent’s credences. They point out that real numbers can’t capture the distinction between certain extremely unlikely events, and actually impossible ones — both get credence 0, which violates a principle known as “regularity”. Following Lewis [1980] and Skyrms [1980], they recommend that we should instead use a much richer set of numbers, called the “hyperreals”. I think that this popular view is (...) the result of two mistakes. The first, which I call the “numerical fallacy”, is to assume that all there is to a mathematical representation is the numbers. In this case, I claim that the standard mathematical representation already captures the needed distinctions, if we look beyond the numbers. The second mistake is like that made by the cartographers in Borges’ story. A representation is no good if it is too large to use. As I show at the end of this paper, the hyperreals have exactly this problem — they are too rich a structure to fit in the world, even if they could help us restore regularity. (shrink)

Many have claimed that unspecific evidence sometimes demands unsharp, indeterminate, imprecise, vague, or interval-valued probabilities. Against this, a variant of the diachronic Dutch Book argument shows that perfectly rational agents always have perfectly sharp probabilities.

This paper introduces what is called the intersubjective interpretation of the probability calculus. Intersubjective probabilities are related to subjective probabilities, and the paper begins with a particular formulation of the familiar Dutch Book argument. This argument is then extended, in Section 3, to social groups, and this enables the concept of intersubjective probability to be introduced in Section 4. It is then argued that the intersubjective interpretation is the appropriate one for the probabilities which appear in confirmation theory whether of (...) a Bayesian or a Popperian variety. The final section of the paper states and tries to answer an objection due to Putnam. (shrink)

in The Oxford Handbook of Corporate Social Responsibility, ed. Paul Anand, Prasanta Pattanaik, and Clemens Puppe, forthcoming 2007.

The Dutch Book argument, like Route 66, is about to turn 80. It is arguably the most celebrated argument for subjective Bayesianism. Start by rejecting the Cartesian idea that doxastic attitudes are ‘all-or-nothing’; rather, they are far more nuanced degrees of belief, for short credences, susceptible to fine-grained numerical measurement. Add a coherentist assumption that the rationality of a doxastic state consists in its internal consistency. The remaining problem is to determine what consistency of credences amounts to. The Dutch Book (...) argument, in a nutshell, says that if your credences do not obey the probability calculus, you are ‘incoherent’—susceptible to sure losses at the hands of a ‘Dutch Bookie’—and thus irrational. Conclusion: rationality requires your credences to obey the probability calculus. And like Route 66, the fortunes of the Dutch Book argument have been mixed. Opinions on the argument are sharply divided. The list of its proponents is quite a ‘who’s who’ of philosophers of probability; they include de Finetti (1937, 1980), Carnap (1950, 1962, and more fully, 1955), Kemeny (1955), Lehman (1955), Shimony (1955), Adams (1962), Mellor (1971), Rosenkrantz (1981), van Fraassen (1989), Jeffrey (1983, 1992). (shrink)

We will formulate two Bell arguments. Together they show that if the probabilities given by quantum mechanics are approximately correct, then the properties exhibited by certain physical systems must be nontrivially dependent on thetypes of measurements performedand eithernonlocally connected orholistically related to distant events. Although a number of related arguments have appeared since John Bell's original paper (1964), they tend to be either highly technical or to lack full generality. The following arguments depend on the weakest of premises, and the (...) structure of the arguments is simpler than most (without any loss of rigor or generality). The technical simplicity is due in part to a novel version of the generalized Bell inequality. The arguments are self contained and presuppose no knowledge of quantum mechanics. We will also offer a Dutch Book argument for measurement type dependence. (shrink)

Many people believe that there is a Dutch Book argument establishing that the principle of countable additivity is a condition of coherence. De Finetti himself did not, but for reasons that are at first sight perplexing. I show that he rejected countable additivity, and hence the Dutch Book argument for it, because countable additivity conflicted with intuitive principles about the scope of authentic consistency constraints. These he often claimed were logical in nature, but he never attempted to relate this idea (...) to deductive logic and its own concept of consistency. This I do, showing that at one level the definitions of deductive and probabilistic consistency are identical, differing only in the nature of the constraints imposed. In the probabilistic case I believe that R.T. Cox's ‘scale-free’ axioms for subjective probability are the most suitable candidates. 1 Introduction 2 Coherence and Consistency 3 The Infinite Fair Lottery 4 The Puzzle Resolved—But Replaced by Another 5 Countable Additivity, Conglomerability and Dutch Books 6 The Probability Axioms and Cox's Theorem 7 Truth and Probability 8 Conclusion: ‘Logical Omniscience’ CiteULike Connotea Del.icio.us What's this? (shrink)

Kyburg’s opposition to the subjective Bayesian theory, and in particular to its advocates’ indiscriminate and often questionable use of Dutch Book arguments, is documented and much of it strongly endorsed. However, it is argued that an alternative version, proposed by both de Finetti at various times during his long career, and by Ramsey, is less vulnerable to Kyburg’s misgivings. This is a logical interpretation of the formalism, one which, it is argued, is both more natural and also avoids other, widely-made (...) objections to Bayesianism. (shrink)

Many people regard utility theory as the only rigorous foundation for subjective probability, and even de Finetti thought the betting approach supplemented by Dutch Book arguments only good as an approximation to a utility-theoretic account. I think that there are good reasons to doubt this judgment, and I propose an alternative, in which the probability axioms are consistency constraints on distributions of fair betting quotients. The idea itself is hardly new: it is in de Finetti and also Ramsey. What is (...) new is that it is shown that probabilistic consistency and consequence can be defined in a way formally analogous to the way these notions are defined in deductive (propositional) logic. The result is a free-standing logic which does not pretend to be a theory of rationality and is therefore immune to, among other charges, that of “logical omniscience”. (shrink)

This paper addresses the problem of why the conditions under which standard proofs of the Dutch Book argument proceed should ever be met. In particular, the condition that there should be odds at which you would be willing to bet indifferently for or against are hardly plausible in practice, and relaxing it and applying Dutch book considerations gives only the theory of upper and lower probabilities. It is argued that there are nevertheless admittedly rather idealised circumstances in which the classic (...) form of the Dutch Book argument is valid. (shrink)

"Frederic Schick, Journal of Philosophy This book uses elementary logical and mathematical means to philosophical end: elucidation of the notions of subjective ...

The most complete defense of causal decision theory available.

In The Logic of Decision Richard Jeffrey defends a version of expected utility theory that advises agents to choose acts with an eye to securing evidence for thinking that desirable results will ensue. Proponents of "causal" decision theory have argued that Jeffrey's account is inadequate because it fails to properly discriminate the causal features of acts from their merely evidential properties. Jeffrey's approach has also been criticized on the grounds that it makes it impossible to extract a unique probability/utility representation (...) from a sufficiently rich system of preferences (given a zero and unit for measuring utility). The existence of these problems should not blind us to the fact that Jeffrey's system has advantages that no other decision theory can match: it can be underwritten by a particularly compelling representation theorem proved by Ethan Bolker; and it has a property called partition invariance that every reasonable theory of rational choice must possess. I shall argue that the non-uniqueness problem can be finessed, and that it is impossible to adequately formulate causal decision theory, or any other, without using Jeffrey's theory as one's basic analysis of rational desire. (shrink)

Bishop Butler, [Butler, 1736], said that probability was the very guide of life. But what interpretations of probability can serve this function? It isn’t hard to see that empirical (frequency) views won’t do, and many recent writers-for example John Earman, who has said that Bayesianism is “the only game in town”-have been persuaded by various dutch book arguments that only subjective probability will perform the function required. We will defend the thesis that probability construed in this way offers very little (...) guidance, dutch book arguments notwithstanding. We will sketch a way out of the impasse. (shrink)

Recently a number of authors have tried to avoid the failures of traditional Dutch book arguments by separating them from pragmatic concerns of avoiding a sure loss. In this paper I examine defenses of this kind by Howson and Urbach, Hellman, and Christensen. I construct rigorous explications of their arguments and show that they are not cogent. I advocate abandoning Dutch book arguments in favor of a representation theorem.

This book is a major contribution to decision theory, focusing on the question of when it is rational to accept scientific theories.

Consistent application of coherece arguments shows that fair betting quotients are subject to constraints that are too stringent to allow their identification with either degrees of belief or probabilities. The pivotal role of fair betting quotients in the Dutch Book Argument, which is said to demonstrate that a rational agent's degrees of belief are probabilities, is thus undermined from both sides.

The paper's focus is on pragmatic arguments for various ‘rationality constraints’ on a decision maker’s state of mind: on his beliefs or preferences. An argument of this kind purports to show that a violator of a given constraint can be exposed to a decision problem in which he will act to his guaranteed disadvantage. Dramatically put, he can be exploited by a clever bookie who doesn’t know more than the agent himself. Examples of pragmatic arguments of this kind are synchronic (...) Dutch Books, for the standard probability axioms, diachronic Dutch Books, for the more controversial principles of reflection and conditionalization, and Money Pumps, for the transitivity requirement on preferences. The proposed exploitation set-ups share a common feature. If the violator of a given constraint is logically and mathematically competent, he can be exploited only if he is disunified in his decision-making. Exploitation is possible only if the agent makes decisions on various issues he confronts one by one, rather than on all of them together. Unity in decision making may be quite costly and is often inconvenient, especially when it concerns opportunity packages that are spread over time. Therefore, pragmatic arguments should be seen as delivering conditional conclusions: “To afford being disunified as a decision maker, you’d better satisfy these constraints.” Arguments of this kind fail to establish the inherent rationality of the constraints under consideration. Levi’s view of the status of pragmatic arguments (cf. Levi 2002) is diametrally opposed. According to him, only synchronic pragmatic arguments are valid (indeed, categorically valid). The diachronic ones, he argues, lack any validity at all. This line of reasoning is questioned in the paper. (shrink)

The Story of the Hats is a puzzle in social epistemology. It describes a situation in which a group of rational agents with common priors and common goals seems vulnerable to a Dutch book if they are exposed to different information and make decisions independently. Situations in which this happens involve violations of what might be called the Group-Reflection Principle. As it turns out, the Dutch book is flawed. It is based on the betting interpretation of the subjective probabilities, but (...) ignores the fact that this interpretation disregards strategic considerations that might influence betting behavior. A lesson to be learned concerns the interpretation of probabilities in terms of fair bets and, more generally, the role of strategic considerations in epistemic contexts. Another lesson concerns Group-Reflection, which in its unrestricted form is highly counter-intuitive. We consider how this principle of social epistemology should be re-formulated so as to make it tenable. (shrink)

Currently, it appears that the most widely accepted solution to the Sleeping Beauty problem is the one-third solution. Another widely held view is that an agent’s credences should be countably additive. In what follows, I will argue that these two views are incompatible, since the principles that underlie the one-third solution are inconsistent with the principle of Countable Additivity (hereafter, CA). I will then argue that this incompatibility is a serious problems for thirders, since it undermines one of the central (...) arguments for their position. (shrink)

In this article, I present some new group level interpretations of probability, and champion one in particular: a consensus-based variant where group degrees of belief are construed as agreed upon betting quotients rather than shared personal degrees of belief. One notable feature of the account is that it allows us to treat consensus between experts on some matter as being on the union of their relevant background information. In the course of the discussion, I also introduce a novel distinction between (...) intersubjective and interobjective interpretations of probability. (shrink)

It is a common view that the axioms of probability can be derived from the following assumptions: (a) probabilities reflect (rational) degrees of belief, (b) degrees of belief can be measured as betting quotients; and (c) a rational agent must select betting quotients that are coherent. In this paper, I argue that a consideration of reasonable betting behaviour, with respect to the alleged derivation of the first axiom of probability, suggests that (b) and (c) are incorrect. In particular, I show (...) how a rational agent might assign a ‘probability’ of zero to an event which she is sure will occur. (shrink)

Classic analysis of the subject and the development of personal probability; one of the greatest controversies in modern statistcal thought.

The "Dutch Book" argument, tracing back to Ramsey and to deFinetti, offers prudential grounds for action in conformity with personal probability. Under several structural assumptions about combinations of stakes (that is, assumptions about the combination of wagers), your betting policy is coherent only if your fair odds are probabilities. The central question posed here is the following one: Besides providing an operational test of coherent betting, does the "Book" argument also provide for adequate measurement (elicitation) of the agents degrees (...) of beliefs? That is, are an agent's fair odds also his/her personal probabilities for those events? We argue the answer is "No!" The problem is caused by the possibility of state dependent utilities. (shrink)

For Savage (1954) as for de Finetti (1974), the existence of subjective (personal) probability is a consequence of the normative theory of preference. (De Finetti achieves the reduction of belief to desire with his generalized Dutch-Book argument for Previsions.) Both Savage and de Finetti rebel against legislating countable additivity for subjective probability. They require merely that probability be finitely additive. Simultaneously, they insist that their theories of preference are weak, accommodating all but self-defeating desires. In this paper we dispute these (...) claims by showing that the following three cannot simultaneously hold: (i) Coherent belief is reducible to rational preference, i.e. the generalized Dutch-Book argument fixes standards of coherence. (ii) Finitely additive probability is coherent. (iii) Admissible preference structures may be free of consequences, i.e. they may lack prizes whose values are robust against all contingencies. (shrink)

According to the Dutch Book Argument (DBA), if an agent's subjective probabilities fail to satisfy the axioms of the probability calculus and so make the agent vulnerable to a Dutch Book, the agent's subjective probabilities are incoherent and the agent is therefore irrational. Critics of DBA have argued, however, that probabilistic incoherence is compatible with various kinds of rationality – logico-semantic, epistemic, instrumental and prudential. In this paper, I provide an interpretation of DBA on which it is true that probabilistic (...) incoherence entails agent irrationality. Articulating this interpretation requires the specification of some of the connections among the varieties of rationality. Once this is done, it becomes possible to vindicate a modest version of DBA. (shrink)

Maher (1992b) advances an objection to dynamic Dutch-book arguments, partly inspired by the discussion in Levi (1987; in particular by Levi's case 2, p. 204). Informally, the objection is that the decision maker will "see the dutch book coming" and consequently refuse to bet, thus escaping the Dutch book. Maher makes this explicit by modeling the decision maker's choices as a sequential decision problem. On this basis he claims that there is a mistake in dynamic coherence arguments. There is really (...) no formal mistake in classical dynamic coherence arguments, but the discussions in Maher and Levi do suggest interesting ways in which the definition of dynamic coherence might be strengthened. Such a strengthened "sequentialized" notion of dynamic coherence is explored here. It so happens that even on the strengthened standards for a Dutch book, the classic dynamic coherence argument for conditioning still goes through. (shrink)

The question of coherence of rules for changing degrees of belief in the light of new evidence is studied, with special attention being given to cases in which evidence is uncertain. Belief change by the rule of conditionalization on an appropriate proposition and belief change by "probability kinematics" on an appropriate partition are shown to have like status.

Philosophical writing on probability theory includes a great many articles discussing relationships between rational behavior and an agent’s susceptibility to betting contexts where an overall loss is mathematically inevitable. What the dutch book theorem establishes is that this kind of susceptibility is a consequence of having betting ratios that are in violation of the Kolmogorov probability axioms. In this article it is noted that a general result to rule out arbitrage can be shown to yield the dutch book theorem as (...) a special case. A formal framework is set forth to handle marketplace transactions involving contractual arrangements; and, within that framework, necessary and sufficient conditions are given for ruling out arbitrage. It is then shown that these conditions entail that pricing functions associated with particular kinds of betting contracts must turn out to be probability functions. (shrink)

Beliefs about fair prices for betting arrangements can obviously vary depending upon how the contingencies are described, even though each of the different descriptions is correct. This sort of variation in beliefs on the part of an agent has been Iinked by Ramsey and Skyrms with the agent’s susceptibility to a dutch book situation involving some combination of bets on which there is a mathematically-guaranteed net loss as the overall outcome. Clarifying the nature of that Iinkage is the purpose of (...) this paper. After a framework for analysis has been developed, it is shown precisely how several important conditions for having correct beliefs are interrelated. (shrink)

It is well known that a degree-of-belief function P is coherent if and only if it satisfies the probability calculus. In this paper, we show that the notion of coherence can be extended to higher order probabilities such as P(P(h)=p)=q, and that a higher order degree-of-belief function P is coherent if and only if it satisfies the probability calculus plus the following axiom: P(h)=p iff P(P(h)=p)=1. Also, a number of lemmata which extend an incomplete probability function to a complete one (...) are established. (shrink)

Probabilistic theories of rationality claim that degrees of belief have to satisfy the probability axioms in order to be rational. A standard argument to support this claim is the Dutch Book argument. This paper tries to show that, in spite of its popularity, the Dutch Book argument does not provide a foundation for normative theories of rationality. After a presentation of the argument and some of its criticisms a problem is pointed out: the Dutch Book argument applies only to situations (...) with a specific formal structure. Several attempts to justify the argument for more general situations are considered and rejected. The only way to remedy the shortcoming, it is argued, seems to be the acceptance of a far-reaching and highly implausible empirical hypothesis. (shrink)

Peter Walley argues that a vague credal state need not be representable by a set of probability functions that could represent precise credal states, because he believes that the members of the representor set need not be countably additive. I argue that the states he defends are in a way incoherent.

Abner Shimony (1988) argues that degrees of belief satisfy the axioms of probability because their epistemic goal is to match estimates of objective probabilities. Because the estimates obey the axioms of probability, degrees of belief must also obey them to reach their epistemic goal. This calibration argument meets some objections, but with a few revisions it can surmount those objections. It offers a good alternative to the Dutch book argument for compliance with the probability axioms. The defense of Shimony's calibration (...) argument examines rational pursuit of an epistemic goal, introduces strength of evidence and its measurement, and distinguishes epistemic goals and functions. (shrink)

Jeff Paris (2001) proves a generalized Dutch Book theorem. If a belief state is not a generalized probability (a kind of probability appropriate for generalized distributions of truth-values) then one faces ‘sure loss’ books of bets. In Williams (manuscript) I showed that Joyce’s (1998) accuracy-domination theorem applies to the same set of generalized probabilities. What is the relationship between these two results? This note shows that (when ‘accuracy’ is treated via the Brier Score) both results are easy corollaries of the (...) core result that Paris appeals to in proving his dutch book theorem (Minkowski’s separating hyperplane theorem). We see that every point of accuracy-domination defines a dutch book, but we only have a partial converse. (shrink)

Jeff Paris (2001) proves a generalized Dutch Book theorem. If a belief state is not a generalized probability (a kind of probability appropriate for generalized distributions of truth-values) then one faces ‘sure loss’ books of bets. In <span class='Hi'>Williams</span> (manuscript) I showed that Joyce’s (1998) accuracy-domination theorem applies to the same set of generalized probabilities. What is the relationship between these two results? This note shows that (when ‘accuracy’ is treated via the Brier Score) both results are easy corollaries of (...) the core result that Paris appeals to in proving his dutch book theorem (Minkowski’s separating hyperplane theorem). We see that every point of accuracy-domination defines a dutch book, but we only have a partial converse. (shrink)

The Dutch Book Argument shows that an agent will lose surely in a gamble (a Dutch Book is made) if his degrees of belief do not satisfy the laws of the probability. Yet a question arises here: What does the Dutch Book imply? This paper firstly argues that there exists a utility function following Ramsey’s axioms. And then, it explicates the properties of the utility function and degree of belief respectively. The properties show that coherence in partial beliefs for Subjective (...) Bayesianism means that the degree of belief, representing a belief ordering, satisfies the laws of probability, and that coherence in preferences means that the preferences are represented by expected utilities. A coherent belief ordering and a utility scale induce a coherent preference ordering; a coherent preference ordering induces a coherent belief ordering which can be uniquely represented by a degree-of-belief function. The preferences (values) and beliefs are both incoherent or disordered if a Dutch Book is made. (shrink)

There are three main points of the paper. 1. There are straightforward ways of manipulating expected gains and losses that result in a divergence between fair betting odds and credence. Such manipulations are familiar from tools of finance. One can easily see that the Sleeping Beauty case is structured in such a way as to result in a divergence between fair betting odds and credence. 2. The inspection of credences and betting odds in certain betting situations shows that the two (...) main extant positions, Elga's and Lewis's, are both mistaken. 3. My proposal may seem to require a revision of probability theory but it does not. The Sleeping Beauty case merely calls attention to a constraint on partitioning of possibility space that is usually satisfied as a matter of course but can in fact be violated. (shrink)