In the methodology of scientific research programs (MSRP) there are important features on the problem of prediction, especially regarding novel facts. In his approach, Imre Lakatos proposed three different levels on prediction: aim, process, and assessment. Chapter 5 pays attention to the characterization of prediction in the methodology of research programs. Thus, it takes into account several features: (1) its pragmatic characterization, (2) the logical perspective as a proposition, (3) the epistemological component, (4) its role in the appraisal of research (...) programs, and (5) its place as a value for scientific research. -/- The notion of “novel facts” is highly relevant in his conception, where several aspects are involved: the directions of novel facts, the different kinds of novelty, and the transition from six possible options of “novel facts” to four choices. Thereafter, the prediction of novel facts as the criterion of appraisal is considered. On the one hand, this requires analyzing the theoretical, empirical, and heuristic possibilities of appraisal; and, on the other, whether there is an overemphasis on the role of prediction in methodology of scientific research programs. As a consequence, there is an analysis of Lakatos’ criterion of appraisal in MSRP and economics. (shrink)

This article suggests a ‘best alternative' justification of induction (in the sense of Reichenbach) which is based on meta-induction . The meta-inductivist applies the principle of induction to all competing prediction methods which are accessible to her. It is demonstrated, and illustrated by computer simulations, that there exist meta-inductivistic prediction strategies whose success is approximately optimal among all accessible prediction methods in arbitrary possible worlds, and which dominate the success of every noninductive prediction strategy. The proposed justification of meta-induction is (...) mathematically analytical. It implies, however, an a posteriori justification of object-induction based on the experiences in our world. *Received November 2005; revised March 2008. †To contact the author, please write to: Department of Philosophy, University of Duesseldorf, Universitaetsstrasse 1, Geb. 23.21, Duesseldorf, Germany D-40225; e-mail: [email protected]. (shrink)

In this paper Reichenbach's best alternative account to induction is examined. In the first section, three versions of the BAA are distinguished that have been discussed in the literature. The major objections against all three versions are presented. In the second section it is shown by a text analysis that Reichenbach argues for all three versions of the BAA and does not sufficiently distinguish between them. In the third section it is explained how Reichenbach's third version of the BAA can (...) be transformed into a provable optimality theorem within the account of meta-induction. (shrink)

Hume argued that inductive inferences do not have rational justification. My aim is to reject Hume's argument. The discussion is partly motivated by an analogy with Carroll's Paradox, which concerns deductive inferences. A first radically externalist reply to Hume is that justified inductive inferences do not require the subject to know that nature is uniform, though the uniformity of nature is necessary condition for having the justification. But then the subject does not have reasons for believing what she believes. I (...) defend a moderate externalist account that seeks to partly accommodate that objection to the radical externalist proposal. It is based on an extension of Peacocke's theory of concepts: possession conditions for predicative concepts standing for natural properties include dispositions to project them to new cases in accordance with inductive inferential patterns. (shrink)

The conclusions derived by Keynes in his Treatise on Probability (1921) concerning induction, analogical reasoning, expectations formation and decision making, mirror and foreshadow the main conclusions of cognitive science and psychology.The problem of weight is studied within an economic context by examining the role it played in Keynes' applied philosophy work, The General Theory (1936). Keynes' approach is then reformulated as an optimal control approach to dealing with changes in information evaluation over time. Based on this analysis the problem of (...) inductive justification, from a societal perspective, is not, What can we rationally believe will occur in the economic future, given our past experiences? but Can we make the future so as to attain specific economic goals with practical certainty? An answer requires that restrictions be placed on the methodological individualist approach and the acceptance of a restricted holistic approach. (shrink)

The aim of this contribution is to provide a rather general answer to Hume’s problem. To this end, induction is treated within a straightforward formal paradigm, i.e., several connected levels of abstraction. Within this setting, many concrete models are discussed. On the one hand, models from mathematics, statistics and information science demonstrate how induction might succeed. On the other hand, standard examples from philosophy highlight fundamental difficulties. Thus it transpires that the difference between unbounded and bounded inductive steps is crucial: (...) while unbounded leaps of faith are never justified, there may well be reasonable bounded inductive steps. In this endeavour, the twin concepts of information and probability prove to be indispensable, pinning down the crucial arguments, and, at times, reducing them to calculations. Essentially, a precise study of boundedness settles Goodman’s challenge. Hume’s more profound claim of seemingly inevitable circularity is answered by obviously non-circular hierarchical structures. (shrink)

The aim of this contribution is to provide a rather general answer to Hume's problem, the well-known problem of induction. To this end, it is very useful to apply his differentiation between ``relations of ideas'' and ``matters of fact'', and to reconsider earlier approaches. In so doing, we consider the problem formally, as well as empirically. Next, received attempts to solve the problem are discussed. The basic structure of inductive problems is exposed in chap. 6. Our final conclusions are to (...) the positive, i.e., Hume's problem can be dealt with - solved - in a constructive way. More specifically, bounded generalisations can be justified, and the key to the solution is the concept of information. (shrink)

In this paper I present a game-theoretical approach to the problem of induction. I investigate the comparative success of prediction methods by mathematical analysis and computer programming. Hume's problem lies in the fact that although the success of object-inductive prediction strategies is quite robust, they cannot be universally optimal. My proposal towards a solution of the problem of induction is meta-induction. I show that there exist meta-inductive prediction strategies whose success is universally optimal, modulo short-run losses which are upper-bounded. I (...) then turn to the implications of my approach for the evolution of cognition. In the final section I suggest a revision of the paradigm of bounded rationality by introducing the distinction between local, general and universal prediction strategies. (shrink)

Hume argued that inductive inferences do not have rational justification. My aim is to reject Hume’s argument. The discussion is partly motivated by an analogy with Carroll’s Paradox, which concerns deductive inferences. A first radically externalist reply to Hume (defended by Dauer and Van Cleve) is that justified inductive inferences do not require the subject to know that nature is uniform, though the uniformity of nature is a necessary condition for having the justification. But then the subject does not have (...) reasons for believing what she believes. I defend a moderate externalist account that seeks to partly accommodate that objection to the radical externalist proposal. It is based on an extension of Peacocke’s theory of concepts: possession conditions for predicative concepts standing for natural properties include (fallible) dispositions to project them to new cases in accordance with inductive inferential patterns. (shrink)

The author finds no support for the claim that J. M. Keynes had severe reservations, in general, as opposed to particular, concerning the application of mathematical, logical and statistical methods in economics. These misinterpretations rest on the omission of important source material as well as a severe misconstrual ofThe Treatise on Probability (1921).