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

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)

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.

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.

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)

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)

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 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)

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)

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)

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)