Equity-linked securities with a guaranteed return become popular in a volatile market environment. This paper presents a new model for valuing guaranteed equity-linked notes. We consider a security whose value depends on the performance of a basket of equities averaged over certain points in time, but that is floored by a guaranteed amount. We show that the security’s price is given by the sum of the guaranteed amount plus the price of an Asian style option on the basket above. The (...) model provides analytical formulas for the security’s price as well as for corresponding hedge ratios; these respective formulas appear to be accurate over a wide range of underlying security parameter values, based on numerical testing against a Monte Carlo benchmark, Finally, we apply our method to value a type of segregated fund with a maturity guarantee. (shrink)

This paper presents a new model for pricing OTC derivatives subject to collateralization. It allows for collateral posting adhering to bankruptcy laws. As such, the model can back out the market price of a collateralized contract. This framework is very useful for valuing outstanding derivatives. Using a unique dataset, we find empirical evidence that credit risk alone is not overly important in determining credit-related spreads. Only accounting for both collateral arrangement and credit risk can sufficiently explain unsecured credit costs. This (...) finding suggests that failure to properly account for collateralization may result in significant mispricing of derivatives. We also empirically gauge the impact of collateral agreements on risk measurements. Our findings indicate that there are important interactions between market and credit risk. (shrink)

This paper presents an analytical model for valuing interest rate swaps, subject to bilateral counterparty credit risk. The counterparty defaults are modeled by the reduced-form model as the first jump of a time-inhomogeneous Poisson process. All quantities modeled are market-observable. The closed-form solution gives us a better understanding of the impact of the credit asymmetry on swap value, credit value adjustment, swap rate and swap spread.

This paper presents a Least Square Monte Carlo approach for accurately calculating credit value adjustment (CVA). In contrast to previous studies, the model relies on the probability distribution of a default time/jump rather than the default time itself, as the default time is usually inaccessible. As such, the model can achieve a high order of accuracy with a relatively easy implementation. We find that the valuation of a defaultable derivative is normally determined via backward induction when their payoffs could be (...) positive or negative. Moreover, the model can naturally capture wrong or right way risk. (shrink)

The incremental risk charge (IRC) is a new regulatory requirement from the Basel Committee in response to the recent financial crisis. Notably few models for IRC have been developed in the literature. This paper proposes a methodology consisting of two Monte Carlo simulations. The first Monte Carlo simulation simulates default, migration, and concentration in an integrated way. Combining with full re-valuation, the loss distribution at the first liquidity horizon for a subportfolio can be generated. The second Monte Carlo simulation is (...) the random draws based on the constant level of risk assumption. It convolutes the copies of the single loss distribution to produce one year loss distribution. The aggregation of different subportfolios with different liquidity horizons is addressed. Moreover, the methodology for equity is also included, even though it is optional in IRC. (shrink)

This article presents a comprehensive framework for valuing financial instruments subject to credit risk. In particular, we focus on the impact of default dependence on asset pricing, as correlated default risk is one of the most pervasive threats in financial markets. We analyze how swap rates are affected by bilateral counterparty credit risk, and how CDS spreads depend on the trilateral credit risk of the buyer, seller, and reference entity in a contract. Moreover, we study the effect of collateralization on (...) valuation, since the majority of OTC derivatives are collateralized. The model shows that a fully collateralized swap is risk-free, whereas a fully collateralized CDS is not equivalent to a risk-free one. (shrink)

The LIBOR Market Model has become one of the most popular models for pricing interest rate products. It is commonly believed that Monte-Carlo simulation is the only viable method available for the LIBOR Market Model. In this article, however, we propose a lattice approach to price interest rate products within the LIBOR Market Model by introducing a shifted forward measure and several novel fast drift approximation methods. This model should achieve the best performance without losing much accuracy. Moreover, the calibration (...) is almost automatic and it is simple and easy to implement. Adding this model to the valuation toolkit is actually quite useful; especially for risk management or in the case there is a need for a quick turnaround. (shrink)

This article presents a new model for valuing a credit default swap (CDS) contract that is affected by multiple credit risks of the buyer, seller and reference entity. We show that default dependency has a significant impact on asset pricing. In fact, correlated default risk is one of the most pervasive threats in financial markets. We also show that a fully collateralized CDS is not equivalent to a risk-free one. In other words, full collateralization cannot eliminate counterparty risk completely in (...) the CDS market. (shrink)

This article presents a new model for valuing financial contracts subject to credit risk and collateralization. Examples include the valuation of a credit default swap (CDS) contract that is affected by the trilateral credit risk of the buyer, seller and reference entity. We show that default dependency has a significant impact on asset pricing. In fact, correlated default risk is one of the most pervasive threats in financial markets. We also show that a fully collateralized CDS is not equivalent to (...) a risk-free one. In other words, full collateralization cannot eliminate counterparty risk completely in the CDS market. (shrink)

This article presents a new methodology for pricing and hedging commodity derivatives. A generic model calibration is provided. The calibration procedure consists of an offline step where the mean reversion rates, the ratio of the long and short factor volatilities and the correlation between the long and short factors are determined via historical analysis. This offline step is performed relatively infrequently. There’s also an online step of the calibration which happens every time the model is used to price an option (...) or to simulate price paths. Empirical study shows that the model is quite accurate. (shrink)

During the lifetime of a structured product, payment events and cancellation events mainly affect the value of the option. This article presents a model for pricing generic cancellable option. The model is used to build most common kinds of cancellation schedules and compute the cancellation probability.

This paper argues that the reduced-form jump diffusion model may not be appropriate for credit risk modeling. To correctly value hybrid defaultable financial instruments, e.g., convertible bonds, we present a new framework that relies on the probability distribution of a default jump rather than the default jump itself, as the default jump is usually inaccessible. As such, the model can back out the market prices of convertible bonds. A prevailing belief in the market is that convertible arbitrage is mainly due (...) to convertible underpricing. Empirically, however, we do not find evidence supporting the underpricing hypothesis. Instead, we find that convertibles have relatively large positive gammas. As a typical convertible arbitrage strategy employs delta-neutral hedging, a large positive gamma can make the portfolio highly profitable, especially for a large movement in the underlying stock price. (shrink)

This article presents a generic model for pricing financial derivatives subject to counterparty credit risk. Both unilateral and bilateral types of credit risks are considered. Our study shows that credit risk should be modeled as American style options in most cases, which require a backward induction valuation. To correct a common mistake in the literature, we emphasize that the market value of a defaultable derivative is actually a risky value rather than a risk-free value. Credit value adjustment (CVA) is also (...) elaborated. A practical framework is developed for pricing defaultable derivatives and calculating their CVAs at a portfolio level. (shrink)

This paper presents a new model for valuing hybrid defaultable financial instruments, such as, convertible bonds. In contrast to previous studies, the model relies on the probability distribution of a default jump rather than the default jump itself, as the default jump is usually inaccessible. As such, the model can back out the market prices of convertible bonds. A prevailing belief in the market is that convertible arbitrage is mainly due to convertible underpricing. Empirically, however, we do not find evidence (...) supporting the underpricing hypothesis. Instead, we find that convertibles have relatively large positive gammas. As a typical convertible arbitrage strategy employs delta-neutral hedging, a large positive gamma can make the portfolio highly profitable, especially for a large movement in the underlying stock price. (shrink)

The one-side defaultable financial derivatives valuation problems have been studied extensively, but the valuation of bilateral derivatives with asymmetric credit qualities is still lacking convincing mechanism. This paper presents an analytical model for valuing derivatives subject to default by both counterparties. The default-free interest rates are modeled by the Market Models, while the default time is modeled by the reduced-form model as the first jump of a time-inhomogeneous Poisson process. All quantities modeled are market-observable. The closed-form solution gives us a (...) better understanding of the impact of the credit asymmetry on swap value, credit value adjustment, swap rate and swap spread. (shrink)

This paper attempts to assess the economic significance and implications of collateralization in different financial markets, which is essentially a matter of theoretical justification and empirical verification. We present a comprehensive theoretical framework that allows for collateralization adhering to bankruptcy laws. As such, the model can back out differences in asset prices due to collateralized counterparty risk. This framework is very useful for pricing outstanding defaultable financial contracts. By using a unique data set, we are able to achieve a clean (...) decomposition of prices into their credit risk factors. We find empirical evidence that counterparty risk is not overly important in credit-related spreads. Only the joint effects of collateralization and credit risk can sufficiently explain unsecured credit costs. This finding suggests that failure to properly account for collateralization may result in significant mispricing of financial contracts. We also analyze the difference between cleared and OTC markets. (shrink)

This paper is about a puzzle which lies at the heart of contemporary physicalist theories of mind. On the one hand, the original motivation for physicalism was the need to explain the place of mental causation in the physical world. On the other hand, physicalists have recently come to see the explanation of mental causation as one of their major problems. But how can this be? How can it be that physicalist theories still have a problem explaining something which their (...) physicalism was intended to explain in the first place? If physicalism is meant to be an explanation of mental causation, then why should it still face the problem of mental causation? (shrink)

Shadow pictures radically changed the modern understanding of pictorial concepts. Tim Otto Roth’s broadly based cultural history traces the consequences of this revolution of methods of vision and image production in the sciences and the arts. By means of abundant image and text sources he develops a picture theory based on physics and projective geometry. This definitive book comprising 500 pages provides a generally understandable and vivid insight in the history of shadowgraphs from the 19th century until the present age. (...) A crucial role play scientific processes as the X-ray technique, but also the artistic examination of space and body. (shrink)

In the beginning of the 1970s, Michel Foucault dismisses the terminology of ‘exclusion’ for his projected analytics of modern power. This rejection has had major repercussions on the theory of neoliberal subject-formation. Many researchers disproportionately stress how neoliberal dispositifs produce entrepreneurial subjects, albeit in different ways, while minimizing how these dispositifs sometimes emphatically refuse to produce neoliberal subjects. Relying on Saskia Sassen’s work on financialization, I argue that neoliberal dispositifs not only apply entrepreneurial norms, but also suspend their application for (...) groups that threaten to harm the population’s profitability. Neoliberal dispositifs not only produce entrepreneurial subjects, but also surplus populations that are expelled from the overall population to maintain its productivity. Here, the concept of ‘exclusion’ is appropriate if understood in Agamben’s sense of an inclusive exclusion. The surplus population is part of neoliberal dispositifs, but only as the element to be abandoned. (shrink)

Standard Type Theory, STT, tells us that b^n(a^m) is well-formed iff n=m+1. However, Linnebo and Rayo have advocated the use of Cumulative Type Theory, CTT, has more relaxed type-restrictions: according to CTT, b^β(a^α) is well-formed iff β > α. In this paper, we set ourselves against CTT. We begin our case by arguing against Linnebo and Rayo’s claim that CTT sheds new philosophical light on set theory. We then argue that, while CTT ’s type-restrictions are unjustifiable, the type-restrictions imposed by (...) STT are justified by a Fregean semantics. What is more, this Fregean semantics provides us with a principled way to resist Linnebo and Rayo’s Semantic Argument for CTT. We end by examining an alternative approach to cumulative types due to Florio and Jones; we argue that their theory is best seen as a misleadingly formulated version of STT. (shrink)

The Problems of Mental Causation. Functionalism in the philosophy of mind identifies mental states with their dispositional connections with other mental states, perceptions and actions. Many theories of the mind have sailed under the Functionalist flag. But what I take to be essential to Functionalism is that mental states are individuated causally: the reality of mental states depends essentially on their causal efficacy.

Christiaens argues that digital technologies are fundamentally undermining workers’ autonomy by enacting systems of surveillance that lead to exploitation, alienation, and exhaustion. For a more sustainable future of work, digital technologies should support human development instead of subordinating it to algorithmic control.

Much recent discussion has focused on the nature of artifacts, particularly on whether artifacts have essences. While the general consensus is that artifacts are at least intention-dependent, an equally common view is function essentialism about artifacts, the view that artifacts are essentially functional objects and that membership in an artifact kind is determined by a particular, shared function. This paper argues that function essentialism about artifacts is false. First, the two component conditions of function essentialism are given a clear and (...) precise formulation, after which counterexamples are offered to each. Second, ways to handle the counterexamples suggested by Randall Dipert and Simon Evnine are considered and rejected. Third, I then consider the prospects for restricting function essentialism to so-called technical artifacts, as Lynne Baker does, and argue that this, too, fails. This paper thereby consolidates the scattered literature on function essentialism and shows that, despite the seeming plausibility of the thesis, it should be rejected as an account of artifact essences. (shrink)

A Commonplace of recent philosophy of mind is that intentional states are relations between thinkers and propositions. This thesis-call it the 'Relational Thesis'-does not depend on any specific theory of propositions. One can hold it whether one believes that propositions are Fregean Thoughts, ordered n-tuples of objects and properties or sets of possible worlds. An assumption that all these theories of propositions share is that propositions are abstract objects, without location in space or time...

Lack of a historical sense is the hereditary defect of philosophers. … So what is needed from now on is historical philosophizing, and with it the virtue of modesty.

Ratio, Volume 34, Issue 4, Page 303-311, December 2021.

Ted Honderich's theory of consciousness as existence, which he here calls Radical Externalism, starts with a good phenomenological observation: that perceptual experience appears to involve external things being immediately present to us. As P.F. Strawson once observed, when asked to describe my current perceptual state, it is normally enough simply to describe the things around me (Strawson, 1979, p. 97). But in my view that does not make the whole theory plausible.

I defend the intention-dependence of artifacts, which says that something is an artifact of kind K only if it is the successful product of an intention to make an artifact of kind K. I consider objections from two directions. First, that artifacts are often mind- and intention-dependent, but that this isn’t necessary, as shown by swamp cases. I offer various error theories for why someone would have artifact intuitions in such cases. Second, that while artifacts are necessarily mind-dependent, they aren’t (...) necessarily intention-dependent. I consider and reject three kinds of cases which purport to show this: accidental creation, automated production, and mass production. I argue that intentions are present in all of these cases, but not where we would normally expect. (shrink)

Tim Button explores the relationship between words and world; between semantics and scepticism. -/- A certain kind of philosopher – the external realist – worries that appearances might be radically deceptive. For example, she allows that we might all be brains in vats, stimulated by an infernal machine. But anyone who entertains the possibility of radical deception must also entertain a further worry: that all of our thoughts are totally contentless. That worry is just incoherent. -/- We cannot, then, be (...) external realists, who worry about the possibility of radical deception. Equally, however, we cannot be internal realists, who reject all possibility of deception. We must position ourselves somewhere between internal realism and external realism, but we cannot hope to say exactly where. We must be realists, for what that is worth, and realists within limits. -/- In establishing these claims, The Limits of Realism critically explores and develops several themes from Hilary Putnam’s work: the model-theoretic arguments; the connection between truth and justification; the brain-in-vat argument; semantic externalism; and conceptual relativity. The book establishes the continued significance of these topics for all philosophers interested in mind, logic, language, or the possibility of metaphysics. (shrink)

In The Mushroom at the End of the World: On the Possibility of Life in Capitalist Ruins, Anna Lowenhaupt Tsing explains how bare land is formed. Capitalism produces ‘ruins’ by stripping living beings of the capacity to form their own ecological relations, a necessary condition for the reproduction of life. Contemporary capitalism alienates living beings from ecological relations, i.e. capitalism generates “the ability to stand alone, as if the entanglements of living did not matter. Through alienation, people and things become (...) mobile assets; they can be removed from their lifeworlds in distance-defying transport to be exchanged with other assets from other life worlds, elsewhere” (Tsing 2021, 5). Cutting the threads of the web of life through capitalist alienation, however, produces bare land as a side effect, infertile waste deprived of the means to reproduce itself without capitalist support. Alienation is the deracination of living beings from their lifeworld, transforming them into passive cogs for capitalist accumulation. However, Tsing upholds matsutake mushrooms, rare fungi popular among Japa- nese foodies, as exemplars of the resilience of ecological relations. Even amidst ruins, matsutakes successfully form beneficial relations with other living beings, like pine trees, other fungi and human beings. The insistent capacity to regenerate ecological relations is the ineluctable means of reproduction for the matsutake mushroom. Even at the end of the world, the matsutake persists by perpetually co-producing new lifeworlds for itself and fellow living beings (see also Haraway 2016). I claim that Tsing’s approach to capitalist alienation is descriptively convinc- ing but lacks the affective force for ecological class consciousness. Tsing surveys the web of life from the perspective of living beings quite distant from humankind, articulating a theoretical diagnosis rather than a political exhortation. On an affective level, it is challenging to generate ecological class consciousness among the (presumably) human readers of my chapter if they are presented with only the biographies of mushrooms growing far beyond my home. As Chantal Mouffe (2018, 72) argues, the construction of an emphatically political identity requires an appeal to the affects, like hope, indignation or compassion. Latour and Schultz also stress that ecological politics currently suffers from an affective misalignment, with people failing to identify with the fate of their increasingly inhospitable environments (2022, 47). Why would European humans care about these unknown fungi? The reproduction of our CO2-intensive livelihoods largely depends on the emission of bare land elsewhere, so in the short run, we stand to benefit more from putting our heads in the sand. I employ Chakrabarty’s (2021) suggestion of grounding post-humanist politics first in strategic anthropocentrism to subsequently push for a post-humanist expansion of our human understanding. One must first feel personally interpellated by the crisis of the global means of reproduction before one can grasp the need for an ecological class politics beyond human confines. I turn to John Steinbeck’s 1939 novel The Grapes of Wrath as a kindred spirit with more mobilising potential. Steinbeck tells the story of a family of impoverished farmers from Oklahoma, the Joads, travelling to California in pursuit of a better life, yet only encountering more poverty, exploitation and anti-immigrant racism. Steinbeck describes in detail the environmental and social devastation, but he focuses on the commodified labour power of migrant farmers rather than commodified mushrooms. Steinbeck’s main characters are also uprooted from their entangled histories in the land and community of rural Oklahoma, but they present a more familiar face of the ecological class deprived of the means of reproduction. Steinbeck’s outcry against alienation-as-deracination is clear, but the shift in perspective facilitates the empathetic outrage required for building ecological class consciousness. Steinbeck’s strategic anthropocentrism helps human readers understand why alienation-as-deracination is a concern. (shrink)

It is widely agreed that perceptual experience is a form of intentionality, i.e., that it has representational content. Many philosophers take this to mean that like belief, experience has propositional content, that it can be true or false. I accept that perceptual experience has intentionality; but I dispute the claim that it has propositional content. This claim does not follow from the fact that experience is intentional, nor does it follow from the fact that experiences are accurate or inaccurate. I (...) end by considering the relationship between this question and the question of whether experience has non-conceptual content. (shrink)

I advocate scepticism about epistemic blame; the view that we have good reason to think there is no distinctively epistemic form of blame. Epistemologists often find it useful to draw a distinction between blameless and blameworthy norm violation. In recent years, this has led several writers to develop theories of ‘epistemic blame.’ I present two challenges against the very idea of epistemic blame. First, everything that is supposedly done by epistemic blame is done by epistemic evaluation, at least according to (...) a prominent view about the social role of epistemic evaluation. Parsimony considerations count against introducing an idle mechanism that does the same work as an existing one. Second, no current theory of epistemic blame includes a plausible account of the force of epistemic blame or the practices that could express it. I conclude that we should give up the notion of epistemic blame. (shrink)

Hilary Putnam once suggested that “the actual existence of sets as ‘intangible objects’ suffers… from a generalization of a problem first pointed out by Paul Benacerraf… are sets a kind of function or are functions a sort of set?” Sadly, he did not elaborate; my aim, here, is to do so on his behalf. There are well-known methods for treating sets as functions and functions as sets. But these do not raise any obvious philosophical or foundational puzzles. For that, we (...) first need to provide a full-fledged function theory. I supply such a theory: it axiomatizes the iterative notion of function in exactly the same sense that ZF axiomatizes the iterative notion of set. Indeed, this function theory is synonymous with ZF. It might seem that set theory and function theory present us with rival foundations for mathematics, since they postulate different ontologies. But appearances are deceptive. Set theory and function theory provide the very same judicial foundation for mathematics. They do not supply rival metaphysical foundations; indeed, if they supply metaphysical foundations at all, then they supply the very same metaphysical foundations. (shrink)

Consider a variant of the usual story about the iterative conception of sets. As usual, at every stage, you find all the (bland) sets of objects which you found earlier. But you also find the result of tapping any earlier-found object with any magic wand (from a given stock of magic wands). -/- By varying the number and behaviour of the wands, we can flesh out this idea in many different ways. This paper's main Theorem is that any loosely constructive (...) way of fleshing out this idea is synonymous with a ZF-like theory. -/- This Theorem has rich applications; it realizes John Conway's (1976) Mathematicians' Liberation Movement; and it connects with a lovely idea due to Alonzo Church (1974). (shrink)

The following bare-bones story introduces the idea of a cumulative hierarchy of pure sets: 'Sets are arranged in stages. Every set is found at some stage. At any stage S: for any sets found before S, we find a set whose members are exactly those sets. We find nothing else at S.' Surprisingly, this story already guarantees that the sets are arranged in well-ordered levels, and suffices for quasi-categoricity. I show this by presenting Level Theory, a simplification of set theories (...) due to Scott, Montague, Derrick, and Potter. (shrink)

In the beginning God created the elementary particles. Bosons, electrons, protons, quarks and the rest he created them. And they were without form and void, so God created the fundamental laws of physics - the laws of mechanics, electromagnetism, thermodynamics and the rest - and assigned values to the fundamental physical constants: the gravitational constant, the speed of light, Planck's constant and the rest. God then set the Universe in motion. And God looked at what he had done, and saw (...) that it was physicalistically acceptable. (shrink)

Much recent discussion has focused on the nature of artifacts, particularly on whether they have essences. While it is often held that artifacts are intention-dependent and necessarily have functions, it is equally commonly held, though far less discussed, that artifacts are the result of physical modification of some material objects. This paper argues that the physical modification condition on artifacts is false. First, it formulates the physical modification condition perspicuously for the first time. Second, it offers counterexamples to this condition, (...) both concrete and abstract. Third, it considers, and rejects, two responses to these counterexamples, one which appeals to the distinction between being a K and being used as a K and another which argues that the counterexamples are merely of functional, not artifactual, kinds. Finally, it considers, and rejects, a more general objection that appropriation makes artifact creation too easy. As a consequence, artifacts can be created by appropriating pre-existing objects and it sketches some success conditions for such appropriation. (shrink)

Many philosophers are impressed by the progress achieved by physical sciences. This has had an especially deep effect on their ontological views: it has made many of them physicalists. Physicalists believe that everything is physical: more precisely, that all entities, properties, relations, and facts are those which are studied by physics or other physical sciences. They may not all agree with the spirit of Rutherford's quoted remark that 'there is physics; and there is stamp-collecting',' but they all grant physical science (...) a unique ontological authority: the authority to tell us what there is. Physicalism is now almost orthodox in much philosophy, notably in much recent philosophy of mind. But although often invoked, it is rarely explicitly defined. It should be. The claim that everything is physical is not as clear as it seems. In this paper, we examine a number of proposed definitions of physicalism and reasons for being a physicalist. We will argue both that physicalism lacks a clear and credible definition, and that in no non-vacuous interpretation is it true. We are concerned here only with physicalism as a doctrine about the empirical world. In particular, it should not be confused with nominalism, the doctrine that there are no universals.2 Nominalism and physicalism are quite independent doctrines. Believers in universals may as consistently assert as deny that the only properties and relations are those studied by physical science. And nominalists may with equal consistency assert or deny that physical science could provide enough predicates to describe the world. That is the question which concerns physicalists, not whether physical predicates name real universals. (We will for brevity write as if they do, but we do not need that assumption.). (shrink)

The phenomenal character of perceptual experience involves the representation of colour, shape and motion. Does it also involve the representation of high-level categories? Is the recognition of a tomato as a tomato contained within perceptual phenomenality? Proponents of a conservative view of the reach of phenomenal content say ’No’, whereas those who take a liberal view of perceptual phenomenality say ’Yes’. I clarify the debate between conservatives and liberals, and argue in favour of the liberal view that high-level content can (...) directly inform the phenomenal character of perception. (shrink)

Some have claimed that people with very different beliefs literally see the world differently. Thus Thomas Kuhn: ‘what a man sees depends both upon what he looks at and also upon what his previous visual—conceptual experience has taught him to see’ (Kuhn 1970, p. ll3). This view — call it ‘Perceptual Relativism’ — entails that a scientist and a child may look at a cathode ray tube and, in a sense, the first will see it while the second won’t. The (...) claim is not, of course, that the child’s experience is ‘empty’; but that, unlike the scientist, it does not see the tube as a cathode ray tube. One way of supporting this claim is to say that one cannot see something as an F unless one has the concept F. Since the child plainly lacks the concept of a cathode ray tube, it cannot see it as a cathode ray tube. Although Perceptual Relativism is hard to believe, this supporting suggestion is not so implausible. After all, when we see (and more generally, perceive) the world, the world is presented to us in a particular way; so how can we see it as being that way unless we have some idea or conception of the way it is presented? We need not be committed to a representative theory of perception to think that perceptions in some sense represent the world. We can express this by saying that perceptions have content. Now it is a commonplace that the contents of beliefs and the other propositional attitudes involve concepts. The belief that this thing is a cathode ray tube involves, in some sense, the concept cathode ray tube. So the line of thought behind Perceptual Relativism may be expressed thus: seeing an F as an F is a state with content. (shrink)

Philosophers of mind typically conduct their discussions in terms of mental events, mental processes, mental properties, mental states – but rarely in terms of minds themselves. Sometimes this neglect is explicitly acknowledged. Donald Davidson, for example, writes that ‘there are no such things as minds, but people have mental properties, which is to say that certain psychological predicates are true of them. These properties are constantly changing, and such changes are mental events’.2 Hilary Putnam agrees, though for somewhat different reasons: (...) The view I have long defended is that the mind is not a thing; talk of our minds is talk of world-involving capabilities that we have and activities that we engage in. As Dewey succinctly put it, “Mind is primarily a verb. It denotes all the ways in which we deal consciously and expressly with the situation in which we find ourselves. Unfortunately, an influential manner of thinking has changed modes of action into an underlying substance that performs the activities in question. It has treated mind as an independent entity which attends, purposes, cares and remembers”. But the traditional view, by treating mental states as states of the “underlying substance”, makes them properties of something “inside”, and, if one is a materialist philosopher, that means properties of our brains. So the next problem naturally seems to be: “Which neurological properties of our brains do these mental properties ‘reduce’ to?” For how could our brains have properties that aren’t neurological? And this is how materialist philosophers saw the problem until the advent of such new alternatives in the philosophy of mind and philosophy of language as Functionalism and Semantic Externalism. (shrink)

We provide a direct method for proving Craig interpolation for a range of modal and intuitionistic logics, including those containing a "converse" modality. We demonstrate this method for classical tense logic, its extensions with path axioms, and for bi-intuitionistic logic. These logics do not have straightforward formalisations in the traditional Gentzen-style sequent calculus, but have all been shown to have cut-free nested sequent calculi. The proof of the interpolation theorem uses these calculi and is purely syntactic, without resorting to embeddings, (...) semantic arguments, or interpreted connectives external to the underlying logical language. A novel feature of our proof includes an orthogonality condition for defining duality between interpolants. (shrink)

Elements of Mind (EM) has two themes, one major and one minor. The major theme is intentionality, the mind’s direction upon its objects; the other is the mind–body problem. I treat these themes separately: chapters 1, and 3–5 are concerned with intentionality, while chapter 2 is about the mind–body problem. In this summary I will first describe my view of the mind–body problem, and then describe the book’s main theme. Like many philosophers, I see the mind–body problem as containing two (...) sub–problems: the problem of mental causation and the problem of consciousness. I see these problems forming the two horns of a dilemma. Just as the problem of mental causation pushes us towards physicalism, so the problem of consciousness pushes us away from it. Each problem reveals the inadequacy of the solution to the other. Essentially the problem of mental causation is the conflict between (i) the apparent fact that mental states and events have effects in the physical world and (ii) a general principle about the causal nature of the physical world, which is sometimes called the ‘causal closure’ or the ‘causal completeness’ of the physical world. This principle says that all physical effects have physical causes which are enough to bring them about. The problem then is simple: how can a mental cause have a physical effect if that effect also has a physical cause which is enough to bring it about? Barring massive overdetermination of our actions by independent causes, it seems that the best answer is to identify the mental and the physical causes. And this is traditionally how physicalists have argued for their identity theory of mind and body. However, many physicalists reject the identity theory, and therefore they have to solve the mental causation problem in some other way. At present, there is no consensus among physicalists on which of the currently proposed solutions is correct. In chapter 2 of EM I propose an alternative, which I call ‘emergentism’. Inspired by the rejection of the identity theory, Emergentism is the idea that mental properties are genu.. (shrink)

We argue that S is in a position to know that p iff S can know that p. Thus, what makes position-to-know-ascriptions true is just a special case of what makes ability-ascriptions true: compossibility. The novelty of our compossibility theory of epistemic modality lies in its subsuming epistemic modality under agentive modality, the modality characterizing what agents can do.

‘It is of the very nature of consciousness to be intentional’ said Jean-Paul Sartre, ‘and a consciousness that ceases to be a consciousness of something would ipso facto cease to exist’.1 Sartre here endorses the central doctrine of Husserl’s phenomenology, itself inspired by a famous idea of Brentano’s: that intentionality, the mind’s ‘direction upon its objects’, is what is distinctive of mental phenomena. Brentano’s originality does not lie in pointing out the existence of intentionality, or in inventing the terminology, which (...) derives from scholastic discussions of concepts or intentiones.2 Rather, his originality consists in his claim that the concept of intentionality marks out the subject matter of psychology: the mental. His view was that intentionality ‘is characteristic exclusively of mental phenomena. No physical phenomenon manifests anything like it’.3 This is Brentano’s thesis that intentionality is the mark of the mental. Despite the centrality of the concept of intentionality in contemporary philosophy of mind, and despite the customary homage paid to Brentano as the one who revived the terminology and placed the concept at the centre of philosophy, Brentano’s thesis is widely rejected by contemporary philosophers of mind. What is more, its rejection is not something which is thought to require substantial philosophical argument. Rather, the falsity of the thesis is taken as a starting-point in many contemporary discussions of intentionality, something so obvious that it only needs to be stated to be recognised as true. Consider, for instance, these remarks from the opening pages of Searle’s Intentionality: Some, not all, mental states and events have Intentionality. Beliefs, fears, hopes and desires are Intentional; but there are forms of nervousness, elation and undirected anxiety that are not Intentional.... My beliefs and desires must always be about something. But my nervousness and undirected anxiety need not in that way be about anything.4 Searle takes this as obvious, so obvious that it is not in need of further argument or elucidation. (shrink)

A widespread intuition is that words, musical works, and flags are intentionally produced and that they’re abstract types that can have incorrect tokens. But some philosophers, notably Julian Dodd and Nicholas Wolterstorff, think intention-dependence isn’t necessary; tokens just need to have certain relevant intrinsic features to be tokens of a given type. I show how there’s an unappreciated puzzle that arises from these two views: if tokens aren’t intention-dependent and types can admit of correct and incorrect tokens, then some driftwood (...) that washes up and forms what seems like the word ‘cat’ may simultaneously be a misspelling of ‘act’ and innumerable other misspelt words. I consider various ways Dodd and Wolterstorff can respond to this counterintuitive result and argue that biting the bullet, as well as nearby views, are implausible. Thus, they need to give up one of the two commitments, and I argue that requiring the intention-dependence of tokens, rather than the mere possession of certain intrinsic properties, is the best option. (shrink)

Newcomers to the philosophy of mind are sometimes resistant to the idea that pain is a mental state. If asked to defend their view, they might say something like this: pain is a physical state, it is a state of the body. A pain in one’s leg feels to be in the leg, not ‘in the mind’. After all, sometimes people distinguish pain which is ‘all in the mind’ from a genuine pain, sometimes because the second is ‘physical’ while the (...) first is not. And we also occasionally distinguish mental pain (which is normally understood as some kind of emotional distress) from the ‘physical pain’ one feels in one’s body. So what can be meant by saying that pain is a mental state? Of course, it only takes a little reflection shows that this naive view is mistaken. Pain is a state of consciousness, or an event in consciousness, and whether or not all states of mind are conscious, it is indisputable that only minds, or states of mind, are conscious.2 But does the naive view tell us anything about the concept of pain, or the concept of mind? I think it does. In this paper, I shall give reasons for thinking that consciousness is a form of intentionality, the mind’s ‘direction upon its objects’. I shall claim that the consciousness involved in bodily sensations like pain is constituted by the mind’s direction upon the part or region of the body where the sensation feels to be. Given this, it is less surprising that the naive view of pain says what it does: the apparent ‘physicality’ of pain is a consequence of confusing the object of the intentional state—the part of the body in which the pain is felt—with the state of being in pain. (shrink)

One of the most influential traditional objections to Adverbialism about perceptual experience is that posed by Frank Jackson’s ‘many property problem’. Perhaps largely because of this objection, few philosophers now defend Adverbialism. We argue, however, that the essence of the many property problem arises for all of the leading metaphysical theories of experience: all leading theories must simply take for granted certain facts about experience, and no theory looks well positioned to explain the facts in a straightforward way. Because of (...) this, the many property problem isn’t on its own a good reason for rejecting Adverbialism; and nor is it a puzzle that will decide amongst the other leading theories. (shrink)

The celebrated "Twin Earth" arguments of Hilary Putnam (1975) and Tyler Burge (1979) aim to establish that some intentional states logically depend on facts external to the subjects of those states. Ascriptions of states of these kinds to a thinker entail that the thinker's environment is a certain way. It is not possible that the thinker could be in those very intentional states unless the environment is that way...