The ontology of decision theory has been subject to considerable debate in the past, and discussion of just how we ought to view decision problems has revealed more than one interesting problem, as well as suggested some novel modifications of classical decision theory. In this paper it will be argued that Bayesian, or evidential, decision-theoretic characterizations of decision situations fail to adequately account for knowledge concerning the causal connections between acts, states, and outcomes in decision situations, and so they are (...) incomplete. Second, it will be argues that when we attempt to incorporate the knowledge of such causal connections into Bayesian decision theory, a substantial technical problem arises for which there is no currently available solution that does not suffer from some damning objection or other. From a broader perspective, this then throws into question the use of decision theory as a model of human or machine planning. (shrink)

A common methodological adage holds that diverse evidence better confirms a hypothesis than does the same amount of similar evidence. Proponents of Bayesian approaches to scientific reasoning such as Horwich, Howson and Urbach, and Earman claim to offer both a precise rendering of this maxim in probabilistic terms and an explanation of why the maxim should be part of the methodological canon of good science. This paper contends that these claims are mistaken and that, at best, Bayesian accounts of diverse (...) evidence are crucially incomplete. This failure should lend renewed force to a long-neglected global worry about Bayesian approaches. (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)

Many philosophers claim to employ intuitions in their philosophical arguments. Others contest that no such intuitions are used frequently or at all in philosophy. This article suggests and defends a conception of intuitions as part of the philosophical method: intuitions are special types of philosophical assumptions to which we are invited to assent, often as premises in argument, that may serve an independent function in philosophical argument and that are not formed through a purely inferential process. A series of philosophical (...) case studies shows that intuitions in these arguments contain the relevant features. The view has implications for philosophical method, offering a compromise between opponents on the divisive debate of the merits of experimental philosophy: experimental philosophy provides an especially useful role in philosophical assumption analysis. (shrink)

Does the philosophy of Radical Probabilism have enough structure to enable it to address fundamental epistemological questions? The requirement of dynamic coherence provides the structure for radical probabilist epistemology. This structure is sufficient to establish (i) the value of knowledge and (ii) long run convergence of degrees of belief.

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)

Following Nancy Cartwright and others, I suggest that most (if not all) theories incorporate, or depend on, one or more idealizing assumptions. I then argue that such theories ought to be regimented as counterfactuals, the antecedents of which are simplifying assumptions. If this account of the logic form of theories is granted, then a serious problem arises for Bayesians concerning the prior probabilities of theories that have counterfactual form. If no such probabilities can be assigned, the the posterior probabilities will (...) be undefined, as the latter are defined in terms of the former. I argue here that the most plausible attempts to address the problem of probabilities of conditionals fail to help Bayesians, and, hence, that Bayesians are faced with a new problem. In so far as these proposed solutions fail, I argue that Bayesians must give up Bayesianism or accept the counterintuitive view that no theories that incorporate any idealizations have ever really been confirmed to any extent whatsoever. Moreover, as it appears that the latter horn of this dilemma is highly implausible, we are left with the conclusion that Bayesianism should be rejected, at least as it stands. (shrink)

Can there be good reasons for judging one set of probabilistic assertions more reliable than a second? There are many candidates for measuring "goodness" of probabilistic forecasts. Here, I focus on one such aspirant: calibration. Calibration requires an alignment of announced probabilities and observed relative frequency, e.g., 50 percent of forecasts made with the announced probability of.5 occur, 70 percent of forecasts made with probability.7 occur, etc. To summarize the conclusions: (i) Surveys designed to display calibration curves, from which a (...) recalibration is to be calculated, are useless without due consideration for the interconnections between questions (forecasts) in the survey. (ii) Subject to feedback, calibration in the long run is otiose. It gives no ground for validating one coherent opinion over another as each coherent forecaster is (almost) sure of his own long-run calibration. (iii) Calibration in the short run is an inducement to hedge forecasts. A calibration score, in the short run, is improper. It gives the forecaster reason to feign violation of total evidence by enticing him to use the more predictable frequencies in a larger finite reference class than that directly relevant. (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)

Choices rarely deal with certainties; and, where assertoric logic and modal logic are insufficient, those seeking to be reasonable turn to one or more things called “probability.” These things typically have a shared mathematical form, which is an arithmetic construct. The construct is often felt to be unsatisfactory for various reasons. A more general construct is that of a preordering, which may even be incomplete, allowing for cases in which there is no known probability relation between two propositions or between (...) two events. Previous discussion of incomplete preorderings has been as if incidental, with researchers focusing upon preorderings for which quantifications are possible. This article presents formal axioms for the more general case. Challenges peculiar to some specific interpretations of the nature of probability are brought to light in the context of these propositions. A qualitative interpretation is offered for probability differences that are often taken to be quantified. A generalization of Bayesian updating is defended without dependence upon coherence. Qualitative hypothesis testing is offered as a possible alternative in cases for which quantitative hypothesis testing is shown to be unsuitable. [NB: There is a transcription error in (A6), the quantification “∀(Y,c₂)” should be applied within the large parentheses to the proposition on the third row. You have my apologies!]. (shrink)

“Dutch Book” arguments and references to gambling theorems are typical in the debate between Bayesians and scientists committed to “classical” statistical methods. These arguments have rarely convinced non-Bayesian scientists to abandon certain conventional practices, partially because many scientists feel that gambling theorems have little relevance to their research activities. In other words, scientists “don’t bet.” This article examines one attempt, by Schervish, Seidenfeld, and Kadane, to progress beyond such apparent stalemates by connecting “Dutch Book”–type mathematical results with principles actually endorsed (...) by practicing experimentalists. (shrink)

Choices rarely deal with certainties; and, where assertoric logic and modal logic are insufficient, those seeking to be reasonable turn to one or more things called “probability.” These things typically have a shared mathematical form, which is an arithmetic construct. The construct is often felt to be unsatisfactory for various reasons. A more general construct is that of a preordering, which may even be incomplete, allowing for cases in which there is no known probability relation between two propositions or between (...) two events. Previous discussion of incomplete preorderings has been as if incidental, with researchers focusing upon preorderings for which quantifications are possible. This article presents formal axioms for the more general case. Challenges peculiar to some specific interpretations of the nature of probability are brought to light in the context of these propositions. A qualitative interpretation is offered for probability differences that are often taken to be quantified. A generalization of Bayesian updating is defended without dependence upon coherence. Qualitative hypothesis testing is offered as a possible alternative in cases for which quantitative hypothesis testing is shown to be unsuitable. (shrink)

Is Bayesian decision theory a panacea for many of the problems in epistemology and the philosophy of science, or is it philosophical snake-oil? For years a debate had been waged amongst specialists regarding the import and legitimacy of this body of theory. Mark Kaplan had written the first accessible and non-technical book to address this controversy. Introducing a new variant on Bayesian decision theory the author offers a compelling case that, while no panacea, decision theory does in fact have the (...) most profound consequences for the way in which philosophers think about inquiry, criticism and rational belief. The new variant on Bayesian theory is presented in such a way that a non-specialist will be able to understand it. The book also offers new solutions to some classic paradoxes. It focuses on the intuitive motivations of the Bayesian approach to epistemology and addresses the philosophical worries to which it has given rise. (shrink)

I raise skeptical doubts about the prospects of Bayesian formal epistemology for providing an adequate general normative model of epistemic rationality. The notion of credence, I argue, embodies a very dubious psychological myth, viz., that for virtually any proposition p that one can entertain and understand, one has some quantitatively precise, 0-to-1 ratio-scale, doxastic attitude toward p. The concept of credence faces further serious problems as well—different ones depending on whether credence 1 is construed as full belief (the limit case (...) of so-called partial belief) or instead is construed as absolute certainty. I argue that the notion of an “ideal Bayesian reasoner” cannot serve as a normative ideal that actual human agents should seek to emulate as closely as they can, because different such reasoners who all have the same evidence as oneself—no single one them being uniquely psychologically most similar to oneself—will differ from one another in their credences (e.g., because they commence from different prior credences). I argue that epistemic probability, properly understood, is quantitative degree of evidential support relative to one’s evidence, and that principled epistemic probabilities arise only under quite special evidential circumstances—which means that epistemic probability is ill suited to figure centrally within general norms of human epistemic rationality. (shrink)

The sensitive dependence on initial conditions (SDIC) associated with nonlinear models imposes limitations on the models’ predictive power. We draw attention to an additional limitation than has been underappreciated, namely, structural model error (SME). A model has SME if the model dynamics differ from the dynamics in the target system. If a nonlinear model has only the slightest SME, then its ability to generate decision-relevant predictions is compromised. Given a perfect model, we can take the effects of SDIC into account (...) by substituting probabilistic predictions for point predictions. This route is foreclosed in the case of SME, which puts us in a worse epistemic situation than SDIC. (shrink)

In the insurance literature, it is often argued that private markets can provide insurance against ‘risks’ but not against ‘uncertainties’ in the sense of Knight ([1921]) or Keynes ([1921]). This claim is at odds with the standard economic model of risk exchange which, in assuming that decision-makers are always guided by point-valued subjective probabilities, predicts that all uncertainties can, in theory, be insured. Supporters of the standard model argue that the insuring of highly idiosyncratic risks by Lloyd's of London proves (...) that this is so even in practice. The purpose of this article is to show that Bruno de Finetti, famous as one of the three founding fathers of the subjective approach to probability assumed by the standard model, actually made a theoretical case for uncertainty within the subjectivist approach. We draw on empirical evidence from the practice of underwriters to show how this case may help explain the reluctance of insurers to cover highly uncertain contingencies. (shrink)

Doxastic TheoriesThe application of formal tools to questions related to epistemology is of course not at all new. However, there has been a surge of interest in the field now known as “formal epistemology” over the past decade, with two annual conference series and an annual summer school at Carnegie Mellon University, in addition to many one-off events devoted to the field. A glance at the programs of these series illustrates the wide-ranging set of topics that have been grouped under (...) this name, ranging from rational choice theory and the foundations of statistics, to logics of knowledge and formal measures of coherence, with much more besides.In this paper I will ignore most of these topics, and just trace some parts of the history of two ideas about belief whose current interaction may lead to future progress. One idea is the idea of belief, disbelief, and suspension of judgment as a meaningful tripartite dis .. (shrink)

Bayesianism is a collection of positions in several related fields, centered on the interpretation of probability as something like degree of belief, as contrasted with relative frequency, or objective chance. However, Bayesianism is far from a unified movement. Bayesians are divided about the nature of the probability functions they discuss; about the normative force of this probability function for ordinary and scientific reasoning and decision making; and about what relation (if any) holds between Bayesian and non-Bayesian concepts.

De Finetti is one of the founding fathers of the subjective school of probability. He held that probabilities are subjective, coherent degrees of expectation, and he argued that none of the objective interpretations of probability make sense. While his theory has been influential in science and philosophy, it has encountered various objections. I argue that these objections overlook central aspects of de Finetti’s philosophy of probability and are largely unfounded. I propose a new interpretation of de Finetti’s theory that highlights (...) these aspects and explains how they are an integral part of de Finetti’s instrumentalist philosophy of probability. I conclude by drawing an analogy between misconceptions about de Finetti’s philosophy of probability and common misconceptions about instrumentalism. (shrink)

De Finetti is one of the founding fathers of the subjective school of probability. He held that probabilities are subjective, coherent degrees of expectation, and he argued that none of the objective interpretations of probability make sense. While his theory has been influential in science and philosophy, it has encountered various objections. I argue that these objections overlook central aspects of de Finetti’s philosophy of probability and are largely unfounded. I propose a new interpretation of de Finetti’s theory that highlights (...) these aspects and explains how they are an integral part of de Finetti’s instrumentalist philosophy of probability. I conclude by drawing an analogy between misconceptions about de Finetti’s philosophy of probability and common misconceptions about instrumentalism. (shrink)

In several papers, John Norton has argued that Bayesianism cannot handle ignorance adequately due to its inability to distinguish between neutral and disconfirming evidence. He argued that this inability sows confusion in, e.g., anthropic reasoning in cosmology or the Doomsday argument, by allowing one to draw unwarranted conclusions from a lack of knowledge. Norton has suggested criteria for a candidate for representation of neutral support. Imprecise credences (families of credal probability functions) constitute a Bayesian-friendly framework that allows us to avoid (...) inadequate neutral priors and better handle ignorance. The imprecise model generally agrees with Norton's representation of ignorance but requires that his criterion of self-duality be reformulated or abandoned. (shrink)

The Doomsday argument and anthropic reasoning are two puzzling examples of probabilistic confirmation. In both cases, a lack of knowledge apparently yields surprising conclusions. Since they are formulated within a Bayesian framework, they constitute a challenge to Bayesianism. Several attempts, some successful, have been made to avoid these conclusions, but some versions of these arguments cannot be dissolved within the framework of orthodox Bayesianism. I show that adopting an imprecise framework of probabilistic reasoning allows for a more adequate representation of (...) ignorance in Bayesian reasoning and explains away these puzzles. (shrink)

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 book is a sustained defense of the compatibility of the presence of idealizations in the sciences and scientific realism. So, the book is essentially a detailed response to the infamous arguments raised by Nancy Cartwright to the effect that idealization and scientific realism are incompatible.

Showcasing original arguments for well-defined positions, as well as clear and concise statements of sophisticated philosophical views, this volume is an ...

Nobody's going to object to the advice "Do the right thing", but that doesn't mean everyone's always going to follow it. Sometimes this is because of our volitional limitations; we cannot always bring ourselves to make the sacrifices that right action requires. But sometimes this is because of our cognitive limitations; we cannot always be sure of what is right. Sometimes we can't be sure of what's right because we don't know the non-normative facts. But sometimes, even if we were (...) to know all of the non-normative facts, we'd still not be sure about what's right, because we're uncertain about the normative reasons those facts give us. In this dissertation, I attempt to answer the question of what we're to do when we must act under fundamentally normative uncertainty. It's tempting to think that, in such circumstances, we should do what we regard as most probably right. I argue that this view is mistaken, for it is insensitive to how degrees of actions' values compare across different normative hypotheses; if an action is probably right, but, if wrong, is terribly, terribly, wrong, it may be rational not to do that action. A better answer is that we should do the action with the highest expected value. I spend the first part of the dissertation providing arguments for and rebutting arguments against this view of action under normative uncertainty. I spend the next part of the dissertation explaining what degrees of value are, and showing how they can be compared across normative hypotheses. In the remaining parts of the dissertation, I consider two questions related to our primary question -- first, what is one required, or obligated, to do under normative uncertainty; and second, what is it rational for one to do when one is not only normatively uncertain in the way we've been discussing, but also uncertain about what it is rational to do under this sort of normative uncertainty. (shrink)