Utility

This is a series of lectures on formal decision theory held at the University of Bayreuth during the summer terms 2008 and 2009. It largely follows the book from Michael D. Resnik: Choices. An Introduction to Decision Theory, 5th ed. Minneapolis London 2000 and covers the topics: -/- Decisions under ignorance and risk Probability calculus (Kolmogoroff Axioms, Bayes' Theorem) Philosophical interpretations of probability (R. v. Mises, Ramsey-De Finetti) Neuman-Morgenstern Utility Theory Introductory Game Theory Social Choice Theory (Sen's Paradox of Liberalism, (...) Arrow's Theorem) . (shrink)

In this paper, I intend to deny the morality and instrumentality of the behavior known as bestiality, or the use of non-human animals for sexual gratification by human beings. While to most modern peoples, this hardly even seems like it should be in question, it should be the nature of the human mind to occasionally question long-standing traditional moray in the hopes of finding solutions to problems and the disbanding of superstition. It has been proposed that the moral question, and (...) by extension the legal question, of bestiality is based on traditions long outlived and unnecessary. In an IceNews.is article written in 2008, Norwegian lawyers were growing concerned over the prevalence of animal brothels in Denmark and the precedent it set for Norway [http://www.icenews.is, 2008]. The article, when coupled with the 2001 article title “Heavy Petting” by prominent Utilitarian philosopher, Peter Singer, proves that the issue of bestiality is no longer the purview of jokes and psychological discussions. I will argue against bestiality as a socially acceptable practice based on five standard premises. The standard premises I will present will contain notes in regard to: instrumentality; consent; disease transmission; deviance; and morality. There is significant work available on the harm done to the beast, so aside from brief summary; the question of the good of the beast is not in the focus. I will also ignore any religious concerns, either surrounding morality or freedom of practice. Instead, these arguments are in support of the moral identity of the individual and of society as a whole. (shrink)

The richer you are, the less equally rich or richer people. The richest is only one (=unique). Maximization of richness or leisure (=classic utility), maximizes the uniqueness (=improbability) that can be maximized also by: extreme sport, suicide, tattoo, count of views... The richest seem unique as the poorest, but the rich can easily become poor, while the poor can hardly get rich. So the aim of maximization reflects IQ and options. Few options increase irrationality, regardless of IQ. I also present (...) the law of values' equality, Utility of Suicide, motivation to support the better, and overview the economics as such. Presented as PhD thesis at CERGE-EI, 2000, exhibited in Holland Park, W8 6LU, 2013, presented at conferences in Santorini 2016, Daejon 2016, Adelaide 2016. (shrink)

This paper critically reviews the arguments supporting rational genuine satisficing. The deconstructive effort unearths inherent problems with the position in both static and dynamic contexts. Many of these arguments build on Herbert Simon’s canonical arguments surrounding incommensurability and demandingness problems. Optimizing is re-constructed using the principles of instrumental satisficing to answer these charges. The resulting conception is both obviously undemanding and a recognizable response to focused decision making.

"Resolution of Jerusalem’s status arguably remains controversial because of the divergent analytical lenses through which the conflict’s parties, and others, view its intertwined legal, territorial, historical and religious issues. Thus, Jerusalem persists as an intricate and intractable cornerstone of the Israel-Palestine conflict." Diakonia International Humanitarian Law Resource Centre.

A decision theory is self-recommending if, when you ask it which decision theory you should use, it considers itself to be among the permissible options. I show that many alternatives to expected utility theory are not self-recommending, and I argue that this tells against them.

This paper aims to address the question of how one ought to choose when one is uncertain about what outcomes will result from one’s choices, but when one can nevertheless assign probabilities to the different possible outcomes. These choices are commonly referred to as choices (or decisions) under risk. I assume in this paper that one ought to make instrumentally rational choices—more precisely, one ought to adopt suitable means to one’s morally permissible ends. Expected utility (EU) theory is generally accepted (...) as a normative theory of rational choice under risk, or, more specifically, as a theory of instrumental rationality. According to EU theory, when faced with a decision under risk, one ought to rank one’s options (from least to most choiceworthy) according to their EU and one ought to choose whichever option carries the greatest EU (or one of them in the event that several alternatives are tied). The EU of an option is a probability-weighted sum of each of its possible utilities. In this paper, I argue that EU theory is not the correct theory of instrumental rationality. In its place, I argue for a new theory of instrumental rationality, namely expected comparative utility (ECU) theory. I first show that for any choice option, a, and for any state of the world, G, the measure of the choiceworthiness of a in G is the comparative utility of a in G—that is, the difference in utility, in G, between a and whichever alternative to a carries the greatest utility in G. On the basis of this principle, I then argue, roughly speaking, that for any agent, S, faced with any decision under risk, S ought to rank his or her options (in terms of how choiceworthy they are) according to their ECU and S ought to choose whichever option carries the greatest ECU (or one of them in the event that several alternatives are tied). For any option, a, a’s ECU is a probability‐weighted sum of a’s comparative utilities across the various possible states of the world. In this paper, I show that in some commonplace decisions under risk, ECU theory delivers different verdicts from those of EU theory. (shrink)

In "Pascal's Mugging" (Bostrom 2009), Pascal gives away his wallet for an extremely tiny chance of an extremely large reward. In this continuation of Bostrom's story, Pascal's friend counsels him to take into account the possibility of making mistakes about his true expected utilities, and they consider to what extent this will help Pascal make plans to avoid future muggings.

It is widely held that under ordinal utility, utility differences are ill-defined. Allegedly, for these to be well-defined (without turning to choice under risk or the like), one should adopt as a new kind of primitive quaternary relations, instead of the traditional binary relations underlying ordinal utility functions. Correlatively, it is also widely held that the key structural properties of quaternary relations are entirely arbitrary from an ordinal point of view. These properties would be, in a nutshell, the hallmark of (...) cardinal utility. While much is obviously true in these two tenets, this note explains why, as stated, they should be abandoned. Any ordinal utility function induces a rich quaternary relation. There is such a thing as ordinal utility differences. Furthermore, this induced quaternary relation respects, apart from completeness, the most standard structural properties of quaternary relations. These properties are, from an ordinal point of view, anything but arbitrary; from a quaternary perspective only completeness should be considered the hallmark—if any—of cardinal utility. These facts are explained to be especially relevant to the critical appreciation of the ordinalist methodology. (shrink)

We investigate the conflict between the ex ante and ex post criteria of social welfare in a new framework of individual and social decisions, which distinguishes between two sources of uncertainty, here interpreted as an objective and a subjective source respectively. This framework makes it possible to endow the individuals and society not only with ex ante and ex post preferences, as is usually done, but also with interim preferences of two kinds, and correspondingly, to introduce interim forms of the (...) Pareto principle. After characterizing the ex ante and ex post criteria, we present a first solution to their conflict that extends the former as much possible in the direction of the latter. Then, we present a second solution, which goes in the opposite direction, and is also maximally assertive. Both solutions translate the assumed Pareto conditions into weighted additive utility representations, and both attribute to the individuals common probability values on the objective source of uncertainty, and different probability values on the subjective source. We discuss these solutions in terms of two conceptual arguments, i.e., the by now classic spurious unanimity argument and a novel informational argument labelled complementary ignorance. The paper complies with the standard economic methodology of basing probability and utility representations on preference axioms, but for the sake of completeness, also considers a construal of objective uncertainty based on the assumption of an exogeneously given probability measure. JEL classification: D70; D81. (shrink)

This paper develops and explores a new framework for theorizing about the measurement and aggregation of well-being. It is a qualitative variation on the framework of social welfare functionals developed by Amartya Sen. In Sen’s framework, a social or overall betterness ordering is assigned to each profile of real-valued utility functions. In the qualitative framework developed here, numerical utilities are replaced by the properties they are supposed to represent. This makes it possible to characterize the measurability and interpersonal comparability of (...) well-being directly, without the use of invariance conditions, and to distinguish between real changes in well-being and merely representational changes in the unit of measurement. The qualitative framework is shown to have important implications for a range of issues in axiology and social choice theory, including the characterization of welfarism, axiomatic derivations of utilitarianism, the meaningfulness of prioritarianism, the informational requirements of variable-population ethics, the impossibility theorems of Arrow and others, and the metaphysics of value. (shrink)

Shadmehr and Ahmed’s book is a welcome extension of optimal foraging theory and neuroeconomics, achieved by integrating both with parameters relating to effort and rate of movement. Their most persuasive and prolific data comes from saccades, where times before and after decision are reasonably determinate. Skeletal movements are less likely to exhibit such tidy temporal organisation.

Are interpersonal comparisons of desire possible? Can we give an account of how facts about desires are grounded, that underpins such comparisons? This paper supposes the answer to the first question is yes, and provides an account of the nature of desire that explains how this is so. The account is a modification of the interpretationist metaphysics of representation that the author has recently been developing. The modification is to allow phenomenological affective valence into the “base facts” on which correct (...) interpretation is grounded. To use this extra resource within that theory to vindicate interpersonal comparisons, we will need to appeal rational connections between level of valence and level of desire, which this paper sets out and examines. (shrink)

Decision theory requires agents to assign probabilities to states of the world and utilities to the possible outcomes of different actions. When agents commit to having the probabilities and/or utilities in a decision problem defined by objective features of the world, they may find themselves unable to decide which actions maximize expected utility. Decision theory has long recognized that work-around strategies are available in special cases; this is where dominance reasoning, minimax, and maximin play a role. Here we describe a (...) different work around, wherein a rational decision about one decision problem can be reached by ‘interpolating’ information from another problem that the agent believes has already been rationally solved. (shrink)

Apparently the Western philosophical tradition has (wrongly) preferred speech over writing – so claims Jacques Derrida. In this paper, I consider whether utilitarianism involves such a preference. There are at least two arguments against the claim.

I present a decision problem in which causal decision theory appears to violate the independence of irrelevant alternatives (IIA) and normal-form extensive-form equivalence (NEE). I show that these violations lead to exploitable behavior and long-run poverty. These consequences appear damning, but I urge caution. This decision should lead causalists to a better understanding of what it takes for a decision between some collection of options to count as a subdecision of a decision between a larger collection of options. And with (...) this better understanding of subdecisions in hand, causalists will not violate the IIA or the NEE. This decision will also teach causalists that, in sequential decisions, a rational agent may be led to make a series of choices which are causally dominated by some other sequence of choices they could have made instead. I will encourage causalists to recognise this as an intrapersonal tragedy of the commons. (shrink)

Suppose that you prefer A to B, B to C, and C to A. Your preferences violate Expected Utility Theory by being cyclic. Money-pump arguments offer a way to show that such violations are irrational. Suppose that you start with A. Then you should be willing to trade A for C and then C for B. But then, once you have B, you are offered a trade back to A for a small cost. Since you prefer A to B, you (...) pay the small sum to trade from B to A. But now you have been turned into a money pump. You are back to the alternative you started with but with less money. This Element shows how each of the axioms of Expected Utility Theory can be defended by money-pump arguments of this kind. The Element also defends money-pump arguments from the standard objections to this kind of approach. This title is also available as Open Access on Cambridge Core. (shrink)

A dialogue, in three parts, on utilitarian vulnerability to exploitation.

After the WHS inscription of the Historic Centre of Macau in 2005, the relationship between citizens of Macau and their heritage is not distanced. Most of these monuments remain functional for religious and social purposes and are actively engaged in public commercial activities such as the annual Macau Light Festival. Several historic houses have been transformed into either a permanent library or a museum where people can experience various events. With such frequent interaction, these monuments are more than just heritage (...) to locals; they are the venues where people’s daily lives are attached. However, this familiarity will cause a paradox in preservation since losing the distance might mean being unable to deliver the message of protection. It would be difficult to find a balance between preservation and reuse of heritage. This paper will use the Historic Centre of Macau as a case study to discuss the types of adaptive reuse in Macau and propose potential risks of these approaches. (shrink)

This paper is about the role of interpersonal comparisons in Harsanyi's aggregation theorem. Harsanyi interpreted his theorem to show that a broadly utilitarian theory of distribution must be true even if there are no interpersonal comparisons of well-being. How is this possible? The orthodox view is that it is not. Some argue that the interpersonal comparability of well-being is hidden in Harsanyi's premises. Others argue that it is a surprising conclusion of Harsanyi's theorem, which is not presupposed by any one (...) of the premises. I argue instead that Harsanyi was right: his theorem and its weighted-utilitarian conclusion do not require interpersonal comparisons of well-being. The key to making sense of this possibility is to treat Harsanyi's weights as dimensional constants rather than dimensionless numbers. (shrink)

People with the kind of preferences that give rise to the St. Petersburg paradox are problematic---but not because there is anything wrong with infinite utilities. Rather, such people cannot assign the St. Petersburg gamble any value that any kind of outcome could possibly have. Their preferences also violate an infinitary generalization of Savage's Sure Thing Principle, which we call the *Countable Sure Thing Principle*, as well as an infinitary generalization of von Neumann and Morgenstern's Independence axiom, which we call *Countable (...) Independence*. In violating these principles, they display foibles like those of people who deviate from standard expected utility theory in more mundane cases: they choose dominated strategies, pay to avoid information, and reject expert advice. We precisely characterize the preference relations that satisfy Countable Independence in several equivalent ways: a structural constraint on preferences, a representation theorem, and the principle we began with, that every prospect has a value that some outcome could have. (shrink)

Mill thinks our attitudes should be held in a way that’s active and ‘alive’. He believes attitudes that lack these qualities—those held dogmatically, or in unreflective conformity—are inimical to our well-being. This claim then serves as a premiss in his argument for overarching principles of liberty. He argues that attitudinal vitality, in the relevant sense, relies upon people experiencing attitudinal conflict, and that this necessitates a prioritization of personal liberties. I argue that, pace Mill, contestation isn’t required for attitudinal vitality. (...) I describe one species of attitudinal vitality that isn’t reliant upon conflict. (shrink)

to appear in Lambert, E. and J. Schwenkler (eds.) Transformative Experience (OUP) -/- L. A. Paul (2014, 2015) argues that the possibility of epistemically transformative experiences poses serious and novel problems for the orthodox theory of rational choice, namely, expected utility theory — I call her argument the Utility Ignorance Objection. In a pair of earlier papers, I responded to Paul’s challenge (Pettigrew 2015, 2016), and a number of other philosophers have responded in similar ways (Dougherty, et al. 2015, Harman (...) 2015) — I call our argument the Fine-Graining Response. Paul has her own reply to this response, which we might call the Authenticity Reply. But Sarah Moss has recently offered an alternative reply to the Fine-Graining Response on Paul’s behalf (Moss 2017) — we’ll call it the No Knowledge Reply. This appeals to the knowledge norm of action, together with Moss’ novel and intriguing account of probabilistic knowledge. In this paper, I consider Moss’ reply and argue that it fails. I argue first that it fails as a reply made on Paul’s behalf, since it forces us to abandon many of the features of Paul’s challenge that make it distinctive and with which Paul herself is particularly concerned. Then I argue that it fails as a reply independent of its fidelity to Paul’s intentions. (shrink)

Так как Гинтис является старшим экономистом, и я читал некоторые из его предыдущих книг с интересом, я ожидал еще несколько понимание поведения. Ксожалению, он делает мертвые руки группового отбора и меноменологии в центральными его теории поведения, и это в значительной степени недействительными работы. Хуже того, так как он показывает такие плохие суждения здесь, это ставит под сомнение все его предыдущие работы. Попытка воскресить выбор группы его друзьями в Гарварде, Новаком и Уилсоном, Несколько лет назад был одним из главных скандалов в (...) биологии в последнее десятилетие, и я рассказал печальную историю в моей статье "Альтруизм, Иисус и конец света, как Templeton Фонд купил Профессорство Гарварда и напали Эволюция, Рациональность и цивилизация - Обзор Э. О. Уилсон "Социальное завоевание Земли" (2012) и Новак филд и High 'SuperCooperators' (201) В отличие от Новака, Гинтис, кажется, не мотивирован религиозным фанатизмом, а сильным желанием создать альтернативу мрачным реалиям человеческой природы, упрощаемым (почти всеобщим) непониманием фундаментальной человеческой биологии и пустым сланцизмом поведенческих ученых, других ученых и широкой общественности. Гинтис справедливо атакует (как он уже много раз) экономистов, социологов и других поведенческих ученых за отсутствие последовательной основы для описания поведения. Конечно,рамки, необходимые для понимания поведения, эволюционные. К сожалению, он не в состоянии обеспечить один сам (в соответствии с его многочисленными критиками, и я согласен), и попытка привить гнилой труп группы отбора на любые экономические и психологические теории он породил в своей десятилетия работы, просто недействительными весь его проект. Хотя Гинтис прилагает доблестные усилия, чтобы понять и объяснить генетику, как Уилсон и Новак, он далек от эксперта, и, как они, математика просто ослепляет его биологических невозможностей и, конечно, это норма в науке. Как Витгенштейн лихо отметил на первой странице культуры и ценности "Существует нет религиозной конфессии, в которой злоупотребление метафизических выражений несет ответственность за столько греха, как это было в математике". Всегда было кристально ясно, что ген, который вызывает поведение, которое уменьшает свою собственную частоту, не может сохраняться, но это ядро понятия группового отбора. Кроме того, было хорошо известно, и часто демонстрируется, что групповой выбор просто сводится к инклюзивной фитнес (выбор родственников), который, как Докинз отметил, это просто еще одно название для эволюции естественного отбора. Как и Уилсон, Гинтис проработал в этой сфере около 50 лет и до сих пор не понял ее, но после того, как разразился скандал, мне понадобилось всего 3 дня, чтобы найти, прочитать и понять наиболее актуальную профессиональную работу, как подробно описано в моей статье. Это ум boggling понять, что Гинтис и Уилсон были не в состоянии сделать это в почти полвека. Я обсуждаю ошибки группового отбора и феномологии, которые являются нормой в академических кругах, как особые случаи почти всеобщего непонимания человеческой природы, которые разрушают Америку и мир. Те, кто желает всеобъемлющего до современных рамок для человеческого поведения из современных двух systEms зрения могут проконсультироваться с моей книгой"Логическая структура философии, психологии, Минd иязык в Людвиг Витгенштейн и Джон Сирл" второй ред (2019). Те, кто заинтересован в более моих работ могут увидеть "Говоря обезьян --Философия, Психология, Наука, Религия и Политика на обреченной. (shrink)

Calculation is omnipresent in the current pandemic. And yet, Continental philosophers never talk about calculation: it seems to be the c** of philosophy. Why is that so? Has it always been like that?

In this article, I firstly discuss why a prioritarian clause can rescue the utilitarian doctrine from the risk of exacerbating inequality in the distribution of resources in those cases in which utility of income does not decline at the margin. Nonetheless, when in the presence of adaptive preferences, classic prioritarianism is more likely than utilitarianism to increase the inequality of resources under all circumstances, independently of the diminishing trend of utility. Hence, I propose to shift the informational focus of prioritarianism (...) from welfare to either social income or capabilities in order to safeguard those who are worse off. Following this, I argue that we may have reasons to limit the aggregative logic of priority-amended utilitarianism through one or more sufficiency thresholds, and that we can partially defuse the negative-thesis objection that is usually levelled against sufficientarianism, provided we interpret the threshold(s) as valid only as long as everyone is led above it. (shrink)

Utility discounting in intertemporal economic modelling has been viewed as problematic, both for descriptive and normative reasons. However, positive utility discount rates can be defended normatively; in particular, it is rational for future utility to be discounted to take into account model-independent outcomes when decision-making under risk. The resultant values will tend to be smaller than descriptive rates under most probability assignments. This also allows us to address some objections that intertemporal considerations will be overdemanding. A principle for utility discount (...) rates is suggested which is rooted in probability discounting. Utility discounting is defended against objections from Parfit (1984) and Broome (2005); Broome (2012). A sample utility discount rate is estimated. [Open access]. (shrink)

The modern concept of ideology was established by the liberal politician and philosopher Destutt de Tracy, with the objective of creating an all-embracing and general science of ideas, which followed the sensualist and empiricist trend initiated by Locke that culminated in the positivism of Comte. Natural selection and immunity are two key concepts in the history of biology that were strongly based on the Malthusian concept of struggle for existence. This concept wrongly assumed that population grew faster than the means (...) of existence. This “natural” law contained implicitly the idea that the poor and least gifted would not survive. This idea led to the progressive development of the concept of natural selection, whose definitive version was given by Darwin. Mechnikov took the concepts of struggle for existence and natural selection and conceived infectious diseases as a struggle between a host and its invader, the so-called phagocytosis theory. This theory created the necessity to possess mechanisms to discriminate between the own and the foreign, and led to the conception of the immune self. These concepts were not developed from ideas coming from perceptions or sensations, but from ideas coming from their values: individual interest, inevitable inequality, property, utility and profit. Values are ideals that constitute an ideological matrix which exerts a numinous activity and influence the development of our future actions. In consequence, science and its practice cannot avoid and ignore the values that drive them and impulse them towards certain directions. (shrink)

The best justification of time-discounting is roughly that it is rational to care less about your more distant future because there is less of you around to have it. I argue that the standard version of this argument, which treats both psychological continuity and psychological connectedness as reasons to care about your future, can only rationalize an irrational—because exploitable—form of future discounting.

It is possible that the world contains infinitely many agents that have positive and negative levels of well-being. Theories have been developed to ethically rank such worlds based on the well-being levels of the agents in those worlds or other qualitative properties of the worlds in question, such as the distribution of agents across spacetime. In this thesis I argue that such ethical rankings ought to be consistent with the Pareto principle, which says that if two worlds contain the same (...) agents and some agents are better off in the first world than they are in the second and no agents are worse off than they are in the second, then the first world is better than the second. I show that if we accept four axioms – the Pareto principle, transitivity, an axiom stating that populations of worlds can be permuted, and the claim that if the ‘at least as good as’ relation holds between two worlds then it holds between qualitative duplicates of this world pair – then we must conclude that there is ubiquitous incomparability between infinite worlds. I show that this is true even if the populations of infinite worlds are disjoint or overlapping, and that we cannot use any qualitative properties of world pairs to rank these worlds. Finally, I argue that this incomparability result generates puzzles for both consequentialist and non-consequentialist theories of objective and subjective permissibility. (shrink)

In this paper, I examine the decision-theoretic status of risk attitudes. I start by providing evidence showing that the risk attitude concepts do not play a major role in the axiomatic analysis of the classic models of decision-making under risk. This can be interpreted as reflecting the neutrality of these models between the possible risk attitudes. My central claim, however, is that such neutrality needs to be qualified and the axiomatic relevance of risk attitudes needs to be re-evaluated accordingly. Specifically, (...) I highlight the importance of the conditional variation and the strengthening of risk attitudes, and I explain why they establish the axiomatic significance of the risk attitude concepts. I also present several questions for future research regarding the strengthening of risk attitudes. (shrink)

A strongly independent preorder on a possibly in finite dimensional convex set that satisfi es two of the following conditions must satisfy the third: (i) the Archimedean continuity condition; (ii) mixture continuity; and (iii) comparability under the preorder is an equivalence relation. In addition, if the preorder is nontrivial (has nonempty asymmetric part) and satisfi es two of the following conditions, it must satisfy the third: (i') a modest strengthening of the Archimedean condition; (ii') mixture continuity; and (iii') completeness. Applications (...) to decision making under conditions of risk and uncertainty are provided. (shrink)

Preference relations are intensively studied in Economics, but they are also approached in AI, Knowledge Representation, and Conceptual Modelling, as they provide a key concept in a variety of domains of application. In this paper, we propose an ontological foundation of preference relations to formalise their essential aspects across domains. Firstly, we shall discuss what is the ontological status of the relata of a preference relation. Secondly, we investigate the place of preference relations within a rich taxonomy of relations (e.g. (...) we ask whether they are internal or external, essential or contingent, descriptive or nondescriptive relations). Finally, we provide an ontological modelling of preference relation as a module of a foundational (or upper) ontology (viz. OntoUML). The aim of this paper is to provide a sharable foundational theory of preference relation that foster interoperability across the heterogeneous domains of application of preference relations. (shrink)

We provide conditions under which an incomplete strongly independent preorder on a convex set X can be represented by a set of mixture preserving real-valued functions. We allow X to be infi nite dimensional. The main continuity condition we focus on is mixture continuity. This is sufficient for such a representation provided X has countable dimension or satisfi es a condition that we call Polarization.

Suppose that it is rational to choose or intend a course of action if and only if the course of action maximizes some sort of expectation of some sort of value. What sort of value should this definition appeal to? According to an influential neo-Humean view, the answer is “Utility”, where utility is defined as a measure of subjective preference. According to a rival neo-Aristotelian view, the answer is “Choiceworthiness”, where choiceworthiness is an irreducibly normative notion of a course of (...) action that is good in a certain way. The neo-Humean view requires preferences to be measurable by means of a utility function. Various interpretations of what exactly a “preference” is are explored, to see if there is any interpretation that supports the claim that a rational agent’s “preferences” must satisfy the “axioms” that are necessary for them to be measurable in this way. It is argued that the only interpretation that supports the idea that the rational agent’s preferences must meet these axioms interprets “preferences” as a kind of value-judgment. But this turns out to be version of the neo-Aristotelian view, rather than the neo-Humean view. Rational intentions maximize expected choiceworthiness, not expected utility. (shrink)

We reexamine some of the classic problems connected with the use of cardinal utility functions in decision theory, and discuss Patrick Suppes's contributions to this field in light of a reinterpretation we propose for these problems. We analytically decompose the doctrine of ordinalism, which only accepts ordinal utility functions, and distinguish between several doctrines of cardinalism, depending on what components of ordinalism they specifically reject. We identify Suppes's doctrine with the major deviation from ordinalism that conceives of utility functions as (...) representing preference differences, while being non- etheless empirically related to choices. We highlight the originality, promises and limits of this choice-based cardinalism. (shrink)

Cognitive tests show that identity and symmetry reflect intellect. 'Guess of other guess' creates various symmetries, while only one is right: 'absolute symmetry', which can be outvoted by the majority. Prejudices result from differences between ME (my identity) and others. Unbiased judgement is symmetrical, always in the middle: neither in favor, nor against ME. Intelligence reduces prejudices, but the lack of opportunities can counterbalance it. That's why type of bias differs in various groups: people from war zones, people in therapy, (...) artists, etc.. "The law of values' equity" is a symmetrical principle redefining utility in economics, when people equate all their values. E.g. 2 children averagely rich, is better than one child rich and another poor. If 'a' is an average richness, and 'x' is a difference in richness, and Utility multiplies all values, then: a * a > (a - x) * (a + x), which is: a² > a² - x². It does not however imply egalitarianism, as it is still better to have both children rich than both average or poor. (shrink)

Decision theory has at its core a set of mathematical theorems that connect rational preferences to functions with certain structural properties. The components of these theorems, as well as their bearing on questions surrounding rationality, can be interpreted in a variety of ways. Philosophy’s current interest in decision theory represents a convergence of two very different lines of thought, one concerned with the question of how one ought to act, and the other concerned with the question of what action consists (...) in and what it reveals about the actor’s mental states. As a result, the theory has come to have two different uses in philosophy, which we might call the normative use and the interpretive use. It also has a related use that is largely within the domain of psychology, the descriptive use. This essay examines the historical development of decision theory and its uses; the relationship between the norm of decision theory and the notion of rationality; and the interdependence of the uses of decision theory. (shrink)

Jim Joyce argues for two amendments to probabilism. The first is the doctrine that credences are rational, or not, in virtue of their accuracy or “closeness to the truth” (1998). The second is a shift from a numerically precise model of belief to an imprecise model represented by a set of probability functions (2010). We argue that both amendments cannot be satisfied simultaneously. To do so, we employ a (slightly-generalized) impossibility theorem of Seidenfeld, Schervish, and Kadane (2012), who show that (...) there is no strictly proper scoring rule for imprecise probabilities. -/- The question then is what should give way. Joyce, who is well aware of this no-go result, thinks that a quantifiability constraint on epistemic accuracy should be relaxed to accommodate imprecision. We argue instead that another Joycean assumption — called strict immodesty— should be rejected, and we prove a representation theorem that characterizes all “mildly” immodest measures of inaccuracy. (shrink)

I have claimed that risk-weighted expected utility maximizers are rational, and that their preferences cannot be captured by expected utility theory. Richard Pettigrew and Rachael Briggs have recently challenged these claims. Both authors argue that only EU-maximizers are rational. In addition, Pettigrew argues that the preferences of REU-maximizers can indeed be captured by EU theory, and Briggs argues that REU-maximizers lose a valuable tool for simplifying their decision problems. I hold that their arguments do not succeed and that my original (...) claims still stand. However, their arguments do highlight some costs of REU theory. (shrink)

Savage's framework of subjective preference among acts provides a paradigmatic derivation of rational subjective probabilities within a more general theory of rational decisions. The system is based on a set of possible states of the world, and on acts, which are functions that assign to each state a consequence€. The representation theorem states that the given preference between acts is determined by their expected utilities, based on uniquely determined probabilities (assigned to sets of states), and numeric utilities assigned to consequences. (...) Savage's derivation, however, is based on a highly problematic well-known assumption not included among his postulates: for any consequence of an act in some state, there is a "constant act" which has that consequence in all states. This ability to transfer consequences from state to state is, in many cases, miraculous -- including simple scenarios suggested by Savage as natural cases for applying his theory. We propose a simplification of the system, which yields the representation theorem without the constant act assumption. We need only postulates P1-P6. This is done at the cost of reducing the set of acts included in the setup. The reduction excludes certain theoretical infinitary scenarios, but includes the scenarios that should be handled by a system that models human decisions. (shrink)

We introduce a ranking of multidimensional alternatives, including uncertain prospects as a particular case, when these objects can be given a matrix form. This ranking is separable in terms of rows and columns, and continuous and monotonic in the basic quantities. Owing to the theory of additive separability developed here, we derive very precise numerical representations over a large class of domains (i.e., typically notof the Cartesian product form). We apply these representationsto (1)streams of commodity baskets through time, (2)uncertain social (...) prospects, (3)uncertain individual prospects. Concerning(1), we propose a finite horizon variant of Koopmans’s (1960) axiomatization of infinite discounted utility sums. The main results concern(2). We push the classic comparison between the exanteand expostsocial welfare criteria one step further by avoiding any expected utility assumptions, and as a consequence obtain what appears to be the strongest existing form of Harsanyi’s (1955) Aggregation Theorem. Concerning(3), we derive a subjective probability for Anscombe and Aumann’s (1963) finite case by merely assuming that there are two epistemically independent sources of uncertainty. (shrink)

Professors of philosophy, the authors have done a succinct and critical analysis of some theories of truth: deflationism, indeterminacy, insolubility, realism, and antirealism.

I argue that prioritarianism cannot be assessed in abstraction from an account of the measure of utility. Rather, the soundness of this view crucially depends on what counts as a greater, lesser, or equal increase in a person’s utility. In particular, prioritarianism cannot accommodate a normatively compelling measure of utility that is captured by the axioms of John von Neumann and Oskar Morgenstern’s expected utility theory. Nor can it accommodate a plausible and elegant generalization of this theory that has been (...) offered in response to challenges to von Neumann and Morgenstern. This is, I think, a theoretically interesting and unexpected source of difficulty for prioritarianism, which I explore in this article. (shrink)

This paper is part of a book symposium for L. A. Paul (2014) Transformative Experience (OUP).

It is widely held that the influence of risk on rational decisions is not entirely explained by the shape of an agent’s utility curve. Buchak (Erkenntnis, 2013, Risk and rationality, Oxford University Press, Oxford, in press) presents an axiomatic decision theory, risk-weighted expected utility theory (REU), in which decision weights are the agent’s subjective probabilities modified by his risk-function r. REU is briefly described, and the global applicability of r is discussed. Rabin’s (Econometrica 68:1281–1292, 2000) calibration theorem strongly suggests that (...) plausible levels of risk aversion cannot be fully explained by concave utility functions; this provides motivation for REU and other theories. But applied to the synchronic preferences of an individual agent, Rabin’s result is not as problematic as it may first appear. Theories that treat outcomes as gains and losses (e.g. prospect theory and cumulative prospect theory) account for risk sensitivity in a way not available to REU. Reference points that mark the difference between gains and losses are subject to framing, many instances of which cannot be regarded as rational. However, rational decision theory may recognize the difference between gains and losses, without endorsing all ways of fixing the point of reference. In any event, REU is a very interesting theory. (shrink)

The orthodox theory of instrumental rationality, expected utility (EU) theory, severely restricts the way in which risk-considerations can figure into a rational individual's preferences. It is argued here that this is because EU theory neglects an important component of instrumental rationality. This paper presents a more general theory of decision-making, risk-weighted expected utility (REU) theory, of which expected utility maximization is a special case. According to REU theory, the weight that each outcome gets in decision-making is not the subjective probability (...) of that outcome; rather, the weight each outcome gets depends on both its subjective probability and its position in the gamble. Furthermore, the individual's utility function, her subjective probability function, and a function that measures her attitude towards risk can be separately derived from her preferences via a Representation Theorem. This theorem illuminates the role that each of these entities plays in preferences, and shows how REU theory explicates the components of instrumental rationality. (shrink)

A recurring claim in a number of behavioural, cognitive and neuro-scientific literatures is that there is, or must be, a unidimensional ‘common currency’ in which the values of different available options are represented. There is striking variety in the quantities or properties that have been proposed as determinants of the ordering in motivational strength. Among those seriously suggested are pain and pleasure, biological fitness, reward and reinforcement, and utility among economists, who have regimented the notion of utility in a variety (...) of ways, some of them incompatible. This topic deserves philosophical attention for at least the following reasons. Repeated invocation of the ‘common currency’ idiom isn’t merely terminological coincidence because most of the claims are competing explanations either of manifest pattern in choices, or of order in the processes producing choice. We can’t suppose that the different currency claims within each area are compatible, because there are significant obstacles to identifying pairs of members of either the ‘pattern’ or ‘process’ group. There are, finally, seriously opposed positions about the relationships between the pattern facts and the process facts. There are philosophical positions both favouring and opposing a common currency. But direct consideration of the abstract relationships between claims about common currencies across scientific settings, and the arguments for and against these claims, is relatively rare. There is, though, much of philosophical interest to be found here. (shrink)