Is there such a thing as bounded rationality? I first try to make sense of the question, and then to suggest which of the disambiguated versions might have answers. We need an account of bounded rationality that takes account of detailed contingent facts about the ways in which human beings fail to perform as we might ideally want to. But we should not think in terms of rules or norms which define good responses to an individual's limitations, but rather in (...) terms of desiderata, situations that limited agents can hope to achieve, and corresponding virtues of achieving them. We should not take formal theories defining optimal behavior in watered-down bounded form, even though they can impose enormous computational or cognitive demands. (shrink)

This paper investigates the relation between consequentialism, as conceived of in moral theory, and standard expected utility theory. I argue that there is a close connection between the two. I show furthermore that consequentialism is not neutral with regard to the values of the agent. Consequentialism, as well as standard expected utility theory, is incompatible with the recognition of considerations that depend on what could have been the case, such as regret and disappointment. I conclude that consequentialism should be rejected (...) as a principle of rational choice and that there are reasons to doubt its plausibility in the realm of moral theory. Moreover, this is a reason to doubt whether standard expected utility theory is a plausible theory of rational choice. (shrink)

In the standard money pump, an agent with cyclical preferences can avoid exploitation if he shows foresight and solves his sequential decision problem using backward induction (BI). This way out is foreclosed in a modified money pump, which has been presented in Rabinowicz (2000). There, BI will lead the agent to behave in a self-defeating way. The present paper describes another sequential decision problem of this kind, the Centipede for an Intransitive Preferrer, which in some respects is even more striking (...) than the modified pump. In the new problem, the BI reasoning that implies self-defeating behavior does not rest on the controversial robustness assumption concerning beliefs in one's future rationality. This strengthens the claim that foresight cannot save the intransitive preferrer from a self-defeating course of action. (shrink)

When you are indifferent between two options, it’s rationally permissible to take either. One way to decide between two such options is to flip a fair coin, taking one option if it lands heads and the other if it lands tails. Is it rationally permissible to employ such a tie-breaking procedure? Intuitively, yes. However, if you are genuinely risk-averse—in particular, if you adhere to risk-weighted expected utility theory (Buchak in Risk and rationality, Oxford University Press, 2013) and have a strictly (...) convex risk-function—the answer will often be no: the REU of deciding by coin-flip will be lower than the REU of choosing one of the options outright (so long as at least one of the options is a nondegenerate gamble). This turns out to be a significant worry for risk-weighted expected utility theory. I argue that it adds real bite to established worries about diachronic consistency afflicting views, like risk-weighted expected utility theory, that violate Independence. And that, while these worries might be surmountable, surmounting them comes at a price. (shrink)

Ex-ante deontology is an attempt to combine deontological constraints on doing or intending harm with the idea that one should act in everyone’s interest if possible. I argue that ex-ante deontology has serious problems in cases where multiple decisions are to be made over time. I then argue that these problems force us to choose between commonsense deontological morality and a more consequentialist morality. I suggest that we should choose the latter.

Politics, Philosophy & Economics, Volume 21, Issue 4, Page 347-371, November 2022. We sometimes have to choose between options that are seemingly incomparable insofar as they seem to be neither better than, worse than, nor equal to each other. This often happens when the available options are quite different from one another. For instance, consider a choice between prioritizing either criminal justice reform or healthcare reform as a public policy goal. Even after the relevant details of the goals and possible (...) reforms are filled in, it is plausible that neither goal is better than, worse than, nor equal to the other. Such seemingly incomparable options present a problem for rational choice since it is unclear how an agent might rationally choose between them. What we need are some principles to help govern rational choice when faced with seemingly incomparable options. I here present three such principles. While each principle is individually compelling, I show that they are jointly incompatible. I then argue that the correct response to this inconsistent triad is to reject the principle that rationally censures performing a sequence of choices one knows will result in a suboptimal outcome. The upshot is that when seeming incomparability is involved, an agent can money pump themselves without being less rational for it. (shrink)

– We offer a new motivation for imprecise probabilities. We argue that there are propositions to which precise probability cannot be assigned, but to which imprecise probability can be assigned. In such cases the alternative to imprecise probability is not precise probability, but no probability at all. And an imprecise probability is substantially better than no probability at all. Our argument is based on the mathematical phenomenon of non-measurable sets. Non-measurable propositions cannot receive precise probabilities, but there is a natural (...) way for them to receive imprecise probabilities. The mathematics of non-measurable sets is arcane, but its epistemological import is far-reaching; even apparently mundane propositions are liable to be affected by non-measurability. The phenomenon of non-measurability dramatically reshapes the dialectic between critics and proponents of imprecise credence. Non-measurability offers natural rejoinders to prominent critics of imprecise credence. Non-measurability even reverses some of the critics’ arguments—by the very lights that have been used to argue against imprecise credences, imprecise credences are better than precise credences. (shrink)

The critics of rational choice theory frequently claim that RCT is self-defeating in the sense that agents who abide by RCT’s prescriptions are less successful in satisfying their preferences than they would be if they abided by some normative theory of choice other than RCT. In this paper, I combine insights from philosophy of action, philosophy of mind and the normative foundations of RCT to rebut this often-made criticism. I then explicate the implications of my thesis for the wider philosophical (...) debate concerning the normativity of RCT for both ideal agents who can form and revise their intentions instantly without cognitive costs and real-life agents who have limited control over the formation and the dynamics of their own intentions. (shrink)

Those who are risk averse with respect to money, and thus turn down some gambles with positive monetary expectations, are nevertheless often willing to accept bundles involving multiple such gambles. Therefore, it might seem that such people should become more willing to accept a risky but favourable gamble if they put it in context with the collection of gambles that they predict they will be faced with in the future. However, it turns out that when a risk averse person adopts (...) the long-term perspective, she faces a decision-problem that can be analysed as a noncooperative game between different “time-slices” of herself, where it is in the interest of each time-slice (given its prediction about other slices) to turn down the gamble with which it is faced. Hence, even if a risk averse but rational person manages to take the long-term perspective, she will, in the absence of what Hardin called “mutual coercion”, end up in a situation analogous to the “tragedy of the commons”. (shrink)

This paper argues that instrumental rationality is more permissive than expected utility theory. The most compelling instrumentalist argument in favour of separability, its core requirement, is that agents with non-separable preferences end up badly off by their own lights in some dynamic choice problems. I argue that once we focus on the question of whether agents’ attitudes to uncertain prospects help define their ends in their own right, or instead only assign instrumental value in virtue of the outcomes they may (...) lead to, we see that the argument must fail. Either attitudes to prospects assign non-instrumental value in their own right, in which case we cannot establish the irrationality of the dynamic choice behaviour of agents with non-separable preferences. Or they don’t, in which case agents with non-separable preferences can avoid the problematic choice behaviour without adopting separable preferences. (shrink)

I offer an explanation for why certain sequences of decisions strike us as irrational while others do not. I argue that we have a standing desire to tell flattering yet plausible narratives about ourselves, and that cases of diachronic behavior that strike us as irrational are those in which you had the opportunity to hide something unflattering and failed to do so.

What makes a choice hard? I discuss and criticize three common answers and then make a proposal of my own. Paradigmatic hard choices are not hard because of our ignorance, the incommensurability of values, or the incomparability of the alternatives. They are hard because the alternatives are on a par; they are comparable, but one is not better than the other, and yet nor are they equally good. So understood, hard choices open up a new way of thinking about what (...) it is to be a rational agent. (shrink)

Good’s theorem is the apparent platitude that it is always rational to ‘look before you leap’: to gather information before making a decision when doing so is free. We argue that Good’s theorem is not platitudinous and may be false. And we argue that the correct advice is rather to ‘make your act depend on the answer to a question’. Looking before you leap is rational when, but only when, it is a way to do this.

Our planning agency contributes to our lives in fundamental ways. Prior partial plans settle practical questions about the future. They thereby pose problems of means, filter solutions to those problems, and guide action. This plan-infused background frames our practical thinking in ways that cohere with our resource limits and help organize our lives, both over time and socially. And these forms of practical thinking involve guidance by norms of plan rationality, including norms of plan consistency, means-end coherence, and stability over (...) time.But why are these norms of rationality? Would these norms be stable under a planning agent's reflection? I try to answer these questions in a way that responds to a skeptical challenge. While I highlight pragmatic reasons for being a planning agent, these need to be supplemented fully to explain the force of these norms in the particular case. I argue that the needed further rationale appeals to the idea that these norms track certain conditions of a planning agent's self-governance, both at a time and over time. With respect to diachronic plan rationality, this approach leads to a modest plan conservatism. (shrink)

According to the standard objection to backward induction in games, its application depends on highly questionable assumptions about the players' expectations as regards future counterfactual game developments. It seems that, in order to make predictions needed for backward reasoning, the players must expect each player to act rationally at each node that in principle could be reached in the game, and also to expect that this confidence in the future rationality of the players would be kept by each player come (...) what may: even at the game-nodes that could only be reached by irrational play. Both expectations seem to be rather unreasonable: a player's initial disposition to rational behaviour may be weakened by a long stretch of irrational play on his part and, even more importantly, his initial confidence in the other players' future rationality may be undermined by an irrational play on their part. For different formulations of this objection see Binmore, Reny and, Bicchieri, Pettit and Sugden. and Aumann and.). (shrink)

There has been considerable debate regarding the relative merits of two theses about moral obligation known as actualism and possibilism. Both theses seek to give expression to the general idea that one ought to do the best one can. According to actualism, one’s obligations turn on what would happen if one chose some course of action, whereas, according to possibilism, they turn on what could happen if one chose some course of action. There are two strands to the debate: the (...) substantive verdicts that the two theses render in particular cases, and the accounts that they yield of the conceptual structure of moral obligation. Possibilism is conceptually appealing, whereas actualism is not, but the latter may seem to render superior substantive verdicts. In this paper, it is argued that, by turning from the objectivist’s emphasis on what is actually best to the prospectivist’s emphasis on what one’s evidence indicates is best, possibilists can provide an account of moral obligation that is both conceptually and substantively attractive. (shrink)

A cornerstone of game theory is backward induction, whereby players reason backward from the end of a game in extensive form to the beginning in order to determine what choices are rational at each stage of play. Truels, or three-person duels, are used to illustrate how the outcome can depend on (1) the evenness/oddness of the number of rounds (the parity problem) and (2) uncertainty about the endpoint of the game (the uncertainty problem). Since there is no known endpoint in (...) the latter case, an extension of the idea of backward induction is used to determine the possible outcomes. The parity problem highlights the lack of robustness of backward induction, but it poses no conflict between foundational principles. On the other hand, two conflicting views of the future underlie the uncertainty problem, depending on whether the number of rounds is bounded (the players invariably shoot from the start) or unbounded (they may all cooperate and never shoot, despite the fact that the truel will end with certainty and therefore be effectively bounded). Some real-life examples, in which destructive behavior sometimes occurred and sometimes did not, are used to illustrate these differences, and some ethical implications of the analysis are discussed. (shrink)

Independence is the condition that, if X is preferred to Y, then a lottery between X and Z is preferred to a lottery between Y and Z given the same probability of Z. Is it rationally required that one’s preferences conform to Independence? The main objection to this requirement is that it would rule out the alleged rationality of Allais and Ellsberg Preferences. In this paper, I put forward a sequential dominance argument with fairly weak assumptions for a variant of (...) Independence (called Independence for Constant Prospects), which shows that Allais and Ellsberg Preferences are irrational. Hence this influential objection (that is, the alleged rationality of Allais and Ellsberg Preferences) can be rebutted. I also put forward a number of sequential dominance arguments that various versions of Independence are requirements of rationality. One of these arguments is based on very minimal assumptions, but the arguments for the versions of Independence which are strong enough to serve in the standard axiomatization of Expected Utility Theory need notably stronger assumptions. (shrink)

There has been much recent interest in imprecise probabilities, models of belief that allow unsharp or fuzzy credence. There have also been some influential criticisms of this position. Here we argue, chiefly against Elga (2010), that subjective probabilities need not be sharp. The key question is whether the imprecise probabilist can make reasonable sequences of decisions. We argue that she can. We outline Elga's argument and clarify the assumptions he makes and the principles of rationality he is implicitly committed to. (...) We argue that these assumptions are too strong and that rational imprecise choice is possible in the absence of these overly strong conditions. (shrink)

The papers focuses on pragmatic arguments for various rationality constraints on a decision maker’s state of mind: on her beliefs or preferences. An argument of this kind typically targets constraint violations. It purports to show that a violator of a given constraint can be confronted with a decision problem in which she will act to her guaranteed disadvantage. Dramatically put, she can be exploited by a clever bookie who doesn’t know more than the agent herself. Examples of pragmatic arguments of (...) this kind are synchronic Dutch Books, for the standard probability axioms, diachronic Dutch Books, for the more controversial principles of reflection and conditionalization, and Money Pumps, for the acyclicity requirement on preferences. The paper suggests that the proposed exploitation set-ups share a common feature. If the violator of a given constraint is logically and mathematically competent, and if she prefers to be better off rather than worse off, she can be exploited only if she is disunified in her decision-making, i.e. only if she makes decisions on various issues she faces separately rather than jointly. Unification in decision making is relatively unproblematic in synchronic contexts, but it may be costly and inconvenient diachronically. On this view, therefore, pragmatic arguments should be seen as delivering conditional recommendations: If you want to afford disunification, then you’d better satisfy these constraints. They identify safeguards of a disunified mind. Isaac Levi’s position on these matters is diametrically different. According to Levi, only synchronic pragmatic arguments are valid. The diachronic ones, he argues, lack any validity at all. This line of reasoning is questioned in the paper. (shrink)

There are at least two plausible generalisations of subjective expected utility (SEU) theory: cumulative prospect theory (which relaxes the independence axiom) and Levi’s decision theory (which relaxes at least ordering). These theories call for a re-assessment of the minimal requirements of rational choice. Here, I consider how an analysis of sequential decision making contributes to this assessment. I criticise Hammond’s (Economica 44(176):337–350, 1977; Econ Philos 4:292–297, 1988a; Risk, decision and rationality, 1988b; Theory Decis 25:25–78, 1988c) ‘consequentialist’ argument for the SEU (...) preference axioms, but go on to formulate a related diachronic-Dutch-book-style’ argument that better achieves Hammond’s aims. Some deny the importance of Dutch-book sure losses, however, in which case, Seidenfeld’s (Econ Philos 4:267–290, 1988a) argument that distinguishes between theories that relax independence and those that relax ordering is relevant. I unravel Seidenfeld’s argument in light of the various criticisms of it and show that the crux of the argument is somewhat different and much more persuasive than what others have taken it to be; the critical issue is the modelling of future choices between ‘indifferent’ decision-tree branches in the sequential setting. Finally, I consider how Seidenfeld’s conclusions might nonetheless be resisted. (shrink)

After maintaining in that certain cyclical preferences can be reasonable, the following questions were tabled: “in what circumstances and under what assumptions … these … preferences of George's would turn him into a ”money pump,” and in what circumstances and under what assumptions they would not do that.” Two pumps afford answers. George, who is sufficiently reasonable and well-informed to use backward induction, has, for this reason, nothing to fear from the first pump, but the second, of a nonstandard design (...) by Wlodek Rabinowicz, ruins him just because he is subject to the constraints of backward induction. Could he be helped by extending his options from actions in a single round, to courses of actions starting in that round? Possibly not. He would be safe if he were capable of resolute choices of couses of action. Even so, he is in trouble through no fault of his, if, as I think, not having that capacity, though a misfortune, is not a fault. (shrink)

In an alleged counter-example to the completeness of rational preferences, a career as a clarinettist is compared with a career in law. It seems reasonable to neither want to judge that the law career is at least as preferred as the clarinet career nor want to judge that the clarinet career is at least as preferred as the law career. The two standard interpretations of examples of this kind are, first, that the examples show that preferences are rationally permitted to (...) be incomplete and, second, that the examples show that preferences are rationally permitted to be indeterminate. In this paper, I shall argue that the difference between these interpretations is crucial for the money-pump argument for transitivity, which is the standard argument that rational preferences are transitive. I shall argue that the money-pump argument for transitivity fails if preferences are rationally permitted to be incomplete but that it works if preferences are rationally permitted to be indeterminate and rationally required to be complete. (shrink)

Orthodox expected utility theory imposes too stringent restrictions on what attitudes to risk one can rationally hold. Focusing on a life-and-death gamble, I identify as the main culprit the theory’s Linearity property, according to which the utility of a particular change in the risk of a bad outcome is independent of the original level of risk. Finally, I argue that a recent non-standard Bayesian decision theory, that does not have this property, handles risky gambles better than the orthodox theory.

Suppose you resolve now to resist an expected temptation later while knowing that once the temptation arrives your preference or evaluative assessment will shift in favor of that temptation. Are there defensible norms of rational planning agency that support sticking with your prior intention in the face of such a shift at the time of temptation and in the absence of relevant new information? This article defends the idea that it might be rational to stick with your prior intention in (...) part because of your anticipation of regret in the further future if you were to give in to the temptation. It does this by appeal to the significance of anticipated future regret to the agent ’s present standpoint, and to the role of the agent ’s standpoint in her self-governance. (shrink)

Morally supererogatory acts are those that go above and beyond the call of duty. More specifically: they are acts that, on any individual occasion, are good to do and also both permissible to do and permissible to refrain from doing. We challenge the way in which discussions of supererogation typically consider our choices and actions in isolation. Instead we consider sequences of supererogatory acts and omissions and show that some such sequences are themselves problematic. This gives rise to the following (...) puzzle: what problem can we have with a sequences of actions if each individual act or omission is itself permissible? In this paper, we develop a response to this question, by exploring whether solutions analogous to those proposed in the rational choice literature are available in the case of supererogatory sequences. Our investigation leads us to the view that making sense of the supererogatory requires accepting that there are global moral norms that apply to sequences of acts alongside the local moral norms that apply to individual acts. (shrink)

Those who are risk averse with respect to money, and thus turn down some gambles with positive monetary expectations, are nevertheless often willing to accept bundles involving multiple such gambles. Therefore, it might seem that such people should become more willing to accept a risky but favourable gamble if they put it in context with the collection of gambles that they predict they will be faced with in the future. However, it turns out that when a risk averse person adopts (...) the long-term perspective, she faces a decision-problem that can be analysed as a noncooperative game between different “time-slices” of herself, where it is in the interest of each time-slice (given its prediction about other slices) to turn down the gamble with which it is faced. Hence, even if a risk averse but rational person manages to take the long-term perspective, she will, in the absence of what Hardin called “mutual coercion”, end up in a situation analogous to the “tragedy of the commons”. (shrink)

This paper presents a critical reflection on dynamic consistency as commonly used in economics and decision theory, and on the difficulty to test it experimentally. It distinguishes between the uses of the term dynamic consistency in order to characterize two different properties: the first accounts for the neutrality of individual preferences towards the timing of resolution of uncertainty whereas the second guarantees that a strategy chosen at the beginning of a sequential decision problem is immune to any reevaluation and will (...) effectively be implemented from then on in the decision problem. Although these two properties are equivalent under expected utility, this is not the case under non-EU. Building on the possible characteristics of individual dynamic preferences under risk, this paper proposes a conceptual categorization, that is experimentally testable, of possible sequential decision making behaviors of non-EU maximizers. (shrink)

Volume 27, Issue 2, June 2020, Page 184-189.