In this talk, I want to present a conception that I have been working on for a number of years (Zwick, 1983, 1995) about the use of systems ideas. I start from the negative and proceed to the positive. The negative assertion is that systems ideas by themselves , unsupplemented by more specific and concrete knowledge (e.g., from the various disciplines), are insufficient for practical application, either for obtaining knowledge about the world or for solving problems. The reason for this (...) is the inherent abstractness of these ideas. The positive assertion is that this metaphysics can be a rich source of insights needed to improve the human condition and a component of a new scientific world view. (shrink)

There are currently two robust traditions in philosophy dealing with doxastic attitudes: the tradition that is concerned primarily with all-or-nothing belief, and the tradition that is concerned primarily with degree of belief or credence. This paper concerns the relationship between belief and credence for a rational agent, and is directed at those who may have hoped that the notion of belief can either be reduced to credence or eliminated altogether when characterizing the norms governing ideally rational agents. It presents a (...) puzzle which lends support to two theses. First, that there is no formal reduction of a rational agent’s beliefs to her credences, because belief and credence are each responsive to different features of a body of evidence. Second, that if our traditional understanding of our practices of holding each other responsible is correct, then belief has a distinctive role to play, even for ideally rational agents, that cannot be played by credence. The question of which avenues remain for the credence-only theorist is considered. (shrink)

We survey the literature that has explored the implications of decision-making under ambiguity for financial market outcomes, such as portfolio choice and equilibrium asset prices. This ambiguity literature has led to a number of significant advances in our ability to rationalize empirical features of asset returns and portfolio decisions, such as the failure of the two-fund separation theorem in portfolio decisions, the modest exposure to risky securities observed for a majority of investors, the home equity preference in international portfolio diversification, (...) the excess volatility of asset returns, the equity premium and the risk-free rate puzzles, and the occurrence of trading break-downs. (shrink)

Bayesian probability has recently been proposed as a normative theory of argumentation. In this article, we provide a Bayesian formalisation of the ad Hitlerum argument, as a special case of the ad hominem argument. Across three experiments, we demonstrate that people's evaluation of the argument is sensitive to probabilistic factors deemed relevant on a Bayesian formalisation. Moreover, we provide the first parameter-free quantitative evidence in favour of the Bayesian approach to argumentation. Quantitative Bayesian prescriptions were derived from participants' stated subjective (...) probabilities (Experiments 1 and 2), as well as from frequency information explicitly provided in the experiment (Experiment 3). Participants' stated evaluations of the convincingness of the argument were well matched to these prescriptions. (shrink)

This book argues for the need to put into practice a profound and comprehensive intellectual revolution, affecting to a greater or lesser extent all branches of scientific and technological research, scholarship and education. This intellectual revolution differs, however, from the now familiar kind of scientific revolution described by Kuhn. It does not primarily involve a radical change in what we take to be knowledge about some aspect of the world, a change of paradigm. Rather it involves a radical change in (...) the fundamental, overall intellectual aims and methods of inquiry. At present inquiry is devoted to the enhancement of knowledge. This needs to be transformed into a kind of rational inquiry having as its basic aim to enhance personal and social wisdom. This new kind of inquiry gives intellectual priority to the personal and social problems we encounter in our lives as we strive to realize what is desirable and of value – problems of knowledge and technology being intellectually subordinate and secondary. For this new kind of inquiry, it is what we do and what we are that ultimately matters: our knowledge is but an aspect of our life and being. (shrink)

The Internet and social media have opened niches for political exploitation of human dispositions to hyper-alarmed states that amplify perceived threats relative to their objective probabilities of occurrence. Researchers should aim to observe the dynamic “ramping up” of security threat mechanisms under controlled experimental conditions. Such research necessarily begins from a clear model of standard baseline states, and should involve adding treatments to established experimental protocols developed by experimental economists. We review these protocols, which allow for joint estimation of risk (...) preferences and subjective beliefs about probabilities and their distributions. Results we have obtained on such estimates, from populations in various countries, are gathered for comparison. Most people show moderate risk aversion in non-alarmed states. We also find universal heterogeneity in risk preference structures, with substantial sub-samples weighting probabilities in such a way as to display “probability pessimism”, while others make risky choices in accordance with expected utility theory. (shrink)

The notion of bounded rationality has recently gained considerable popularity in the behavioural and social sciences. This article surveys the different usages of the term, in particular the way ‘anomalosus’ behavioural phenomena are elicited, how these phenomena are incorporated in model building, and what sort of new theories of behaviour have been developed to account for bounded rationality in choice and in deliberation. It also discusses the normative relevance of bounded rationality, in particular as a justifier of non‐standard reasoning and (...) deliberation heuristics. For each of these usages, the overview discusses the central methodological problems. (shrink)

Systems Science Ph.D. Program, Portland State University, Portland, Oregon 97207-0751, [email protected] Department of Philosophy, Reed College, 3203 SE Woodstock Boulevard, Portland, Oregon 97202, [email protected] Systems Science Ph.D. Program, Portland State University, Portland, Oregon 97207-0751, [email protected]..

Whereas many others have scrutinized the Allais paradox from a theoretical angle, we study the paradox from an historical perspective and link our findings to a suggestion as to how decision theory could make use of it today. We emphasize that Allais proposed the paradox asa normative argument, concerned with ‘the rational man’ and not the ‘real man’, to use his words. Moreover, and more subtly, we argue that Allais had an unusual sense of the normative, being concerned not so (...) much with therationality of choicesas with therationality of the agent as a person. These two claims are buttressed by a detailed investigation – the first of its kind – of the 1952 Paris conference on risk, which set the context for the invention of the paradox, and a detailed reconstruction – also the first of its kind – of Allais’s specific normative argument from his numerous but allusive writings. The paper contrasts these interpretations of what the paradox historically represented, with how it generally came to function within decision theory from the late 1970s onwards: that is, as an empirical refutation of the expected utility hypothesis, and more specifically of the condition of von Neumann–Morgenstern independence that underlies that hypothesis. While not denying that this use of the paradox was fruitful in many ways, we propose another use that turns out also to be compatible with an experimental perspective. Following Allais’s hints on ‘the experimental definition of rationality’, this new use consists inletting the experiment itself speak of the rationality or otherwise of the subjects. In the 1970s, a short sequence of papers inspired by Allais implemented original ways of eliciting the reasons guiding the subjects’ choices, and claimed to be able to draw relevant normative consequences from this information. We end by reviewing this forgotten experimental avenue not simply historically, but with a view to recommending it for possible use by decision theorists today. (shrink)

Epistemic decision theory (EDT) employs the mathematical tools of rational choice theory to justify epistemic norms, including probabilism, conditionalization, and the Principal Principle, among others. Practitioners of EDT endorse two theses: (1) epistemic value is distinct from subjective preference, and (2) belief and epistemic value can be numerically quantified. We argue the first thesis, which we call epistemic puritanism, undermines the second.

According to the traditional Bayesian view of credence, its structure is that of precise probability, its objects are descriptive propositions about the empirical world, and its dynamics are given by conditionalization. Each of the three essays that make up this thesis deals with a different variation on this traditional picture. The first variation replaces precise probability with sets of probabilities. The resulting imprecise Bayesianism is sometimes motivated on the grounds that our beliefs should not be more precise than the evidence (...) calls for. One known problem for this evidentially motivated imprecise view is that in certain cases, our imprecise credence in a particular proposition will remain the same no matter how much evidence we receive. In the first essay I argue that the problem is much more general than has been appreciated so far, and that it’s difficult to avoid without compromising the initial evidentialist motivation. The second variation replaces descriptive claims with moral claims as the objects of credence. I consider three standard arguments for probabilism with respect to descriptive uncertainty—representation theorem arguments, Dutch book arguments, and accuracy arguments—in order to examine whether such arguments can also be used to establish probabilism with respect to moral uncertainty. In the second essay, I argue that by and large they can, with some caveats. First, I don’t examine whether these arguments can be given sound non-cognitivist readings, and any conclusions therefore only hold conditional on cognitivism. Second, decision-theoretic representation theorems are found to be less convincing in the moral case, because there they implausibly commit us to thinking that intertheoretic comparisons of value are always possible. Third and finally, certain considerations may lead one to think that imprecise probabilism provides a more plausible model of moral epistemology. The third variation considers whether, in addition to conditionalization, agents may also change their minds by becoming aware of propositions they had not previously entertained, and therefore not previously assigned any probability. More specifically, I argue that if we wish to make room for reflective equilibrium in a probabilistic moral epistemology, we must allow for awareness growth. In the third essay, I sketch the outline of such a Bayesian account of reflective equilibrium. Given that this account gives a central place to awareness growth, and that the rationality constraints on belief change by awareness growth are much weaker than those on belief change by conditionalization, it follows that the rationality constraints on the credences of agents who are seeking reflective equilibrium are correspondingly weaker. (shrink)

The symposium on Francesco Guala’s Understanding Institutions was thought provoking. Five critical papers took issue with Guala’s reconciliation of the game-theoretical view of institutions and the rule-governed view. We offer some critical commentary that adopts a different perspective. We agree that institutions are central to social life and, thus, also to the social sciences; they are also prior to and more fundamental than individuals. We add some historical points on the ways previous philosophers thought about institutions, and we come at (...) this from a philosophical viewpoint that is not that of analytic philosophy but rather that of Popper’s critical rationalism. In that framework, we espouse an idea of the relation between philosophy and the philosophy of science that is different from that of Guala and his commentators, and we recommend a reformist philosophy of institutions that is neither radical nor traditionalist and that makes better sense of the institution of the scholarly symposium than do... (shrink)

Philosophy and Phenomenological Research, EarlyView.

This dialogue between Achilles and the Tortoise – in the spirit of those of Carroll and Hofstadter – argues against the idea, identified with the “traditional” interpretation of Aristotle’s “sea battle argument”, that future contingents are an exception to the Principle of Bivalence. It presents examples of correct everyday predictions, without which one would not be able to decide and to act; however, doing this is incompatible with the belief that the content of these predictions lacks a truth-value. The cost (...) of using a non-classical logic to cope with that may be too high for Stagirite’s defenders, and they would still need to explain why our ordinary predictions seem to have a binary truth-value. In the end, the paper suggests that the problem of future contingents – and of free will – is not a logical problem at all, but rather a limit on what an agent can believe before taking a decision. (shrink)

Jeremy Bentham is often interpreted as defending a satisficing, rather than maximizing, version of utilitarianism, where an act is right as long as it produces more pleasure than pain. This lack of maximization is surprising given Bentham’s maximizing slogan ‘the greatest happiness of the greatest number’. Against the satisficing interpretation, I argue that Bentham consistently defends a maximizing version of utilitarianism, where an act’s consequences are compared to those of not performing the act. I show that following this version of (...) utilitarianism requires that one realizes the greatest happiness for all affected individuals. (shrink)

We present a new “reason-based” approach to the formal representation of moral theories, drawing on recent decision-theoretic work. We show that any moral theory within a very large class can be represented in terms of two parameters: a specification of which properties of the objects of moral choice matter in any given context, and a specification of how these properties matter. Reason-based representations provide a very general taxonomy of moral theories, as differences among theories can be attributed to differences in (...) their two key parameters. We can thus formalize several distinctions, such as between consequentialist and non-consequentialist theories, between universalist and relativist theories, between agent-neutral and agent-relative theories, between monistic and pluralistic theories, between atomistic and holistic theories, and between theories with a teleological structure and those without. Reason-based representations also shed light on an important but under-appreciated phenomenon: the “underdetermination of moral theory by deontic content”. (shrink)

Harsanyi claimed that his Aggregation and Impartial Observer Theorems provide a justification for utilitarianism. This claim has been strongly resisted, notably by Sen and Weymark, who argue that while Harsanyi has perhaps shown that overall good is a linear sum of individuals’ von Neumann-Morgenstern utilities, he has done nothing to establish any con- nection between the notion of von Neumann-Morgenstern utility and that of well-being, and hence that utilitarianism does not follow. The present article defends Harsanyi against the Sen-Weymark cri- (...) tique. I argue that, far from being a term with precise and independent quantitative content whose relationship to von Neumann-Morgenstern utility is then a substantive question, terms such as ‘well-being’ suffer (or suffered) from indeterminacy regarding precisely which quantity they refer to. If so, then (on the issue that this article focuses on) Harsanyi has gone as far towards defending ‘utilitarianism in the original sense’ as could coherently be asked. (shrink)

We propose a critique ofnormativism, defined as the idea that human thinking reflects a normative system against which it should be measured and judged. We analyze the methodological problems associated with normativism, proposing that it invites the controversial “is-ought” inference, much contested in the philosophical literature. This problem is triggered when there are competing normative accounts (the arbitration problem), as empirical evidence can help arbitrate between descriptive theories, but not between normative systems. Drawing on linguistics as a model, we propose (...) that a clear distinction between normative systems and competence theories is essential, arguing that equating them invites an “is-ought” inference: to wit, supporting normative “ought” theories with empirical “is” evidence. We analyze in detail two research programmes with normativist features – Oaksford and Chater's rational analysis and Stanovich and West's individual differences approach – demonstrating how, in each case, equating norm and competence leads to an is-ought inference. Normativism triggers a host of research biases in the psychology of reasoning and decision making: focusing on untrained participants and novel problems, analyzing psychological processes in terms of their normative correlates, and neglecting philosophically significant paradigms when they do not supply clear standards for normative judgement. For example, in a dual-process framework, normativism can lead to a fallacious “ought-is” inference, in which normative responses are taken as diagnostic of analytic reasoning. We propose that little can be gained from normativism that cannot be achieved by descriptivist computational-level analysis, illustrating our position with Hypothetical Thinking Theory and the theory of the suppositional conditional. We conclude that descriptivism is a viable option, and that theories of higher mental processing would be better off freed from normative considerations. (shrink)

This paper links the conjecture that the physical world is a virtual reality to the findings of modern physics. What is usually the subject of science fiction is here proposed as a scientific theory open to empirical evaluation. We know from physics how the world behaves, and from computing how information behaves, so whether the physical world arises from ongoing information processing is a question science can evaluate. A prima facie case for the virtual reality conjecture is presented. If a (...) photon is a pixel on a multi-dimensional grid that gives rise to space, the speed of light could reflect its refresh rate. If mass, charge and energy all arise from processing, the many conservation laws of physics could reduce to a single law of dynamic information conservation. If the universe is a virtual reality, then its big bang creation could be simply when the system was booted up. Deriving core physics from information processing could reconcile relativity and quantum theory, with the former how processing creates the space-time operating system and the latter how it creates energy and matter applications. (shrink)

This book concerns the foundations of epistemic modality and hyperintensionality and their applications to the philosophy of mathematics. David Elohim examines the nature of epistemic modality, when the modal operator is interpreted as concerning both apriority and conceivability, as well as states of knowledge and belief. The book demonstrates how epistemic modality and hyperintensionality relate to the computational theory of mind; metaphysical modality and hyperintensionality; the types of mathematical modality and hyperintensionality; to the epistemic status of large cardinal axioms, undecidable (...) propositions, and abstraction principles in the philosophy of mathematics; to the modal and hyperintensional profiles of the logic of rational intuition; and to the types of intention, when the latter is interpreted as a hyperintensional mental state. Chapter \textbf{2} argues for a novel type of expressivism based on the duality between the categories of coalgebras and algebras, and argues that the duality permits of the reconciliation between modal and hyperintensional cognitivism and modal and hyperintensional expressivism. Elohim develops a novel, topic-sensitive truthmaker semantics for dynamic epistemic logic, and develops a novel, dynamic two-dimensional semantics grounded in two-dimensional hyperintensional Turing machines. Chapter \textbf{3} provides an abstraction principle for two-dimensional (hyper-)intensions. Chapter \textbf{4} advances a topic-sensitive two-dimensional truthmaker semantics, and provides three novel interpretations of the framework along with the epistemic and metasemantic. Chapter \textbf{5} applies the fixed points of the modal $\mu$-calculus in order to account for the iteration of epistemic states in a single agent, by contrast to availing of modal axiom 4 (i.e. the KK principle). The fixed point operators in the modal $\mu$-calculus are rendered hyperintensional, which yields the first hyperintensional construal of the modal $\mu$-calculus in the literature and the first application of the calculus to the iteration of epistemic states in a single agent instead of the common knowledge of a group of agents. Chapter \textbf{6} advances a solution to the Julius Caesar problem based on Fine's `criterial' identity conditions which incorporate conditions on essentiality and grounding. Chapter \textbf{7} provides a ground-theoretic regimentation of the proposals in the metaphysics of consciousness and examines its bearing on the two-dimensional conceivability argument against physicalism. The topic-sensitive epistemic two-dimensional truthmaker semantics developed in chapters \textbf{2} and \textbf{4} is availed of in order for epistemic states to be a guide to metaphysical states in the hyperintensional setting. -/- Chapters \textbf{8-12} provide cases demonstrating how the two-dimensional hyperintensions of hyperintensional, i.e. topic-sensitive epistemic two-dimensional truthmaker, semantics, solve the access problem in the epistemology of mathematics. Chapter \textbf{8} examines the interaction between Elohim's hyperintensional semantics and the axioms of epistemic set theory, large cardinal axioms, the Epistemic Church-Turing Thesis, the modal axioms governing the modal profile of $\Omega$-logic, Orey sentences such as the Generalized Continuum Hypothesis, and absolute decidability. These results yield inter alia the first hyperintensional Epistemic Church-Turing Thesis and hyperintensional epistemic set theories in the literature. Chapter \textbf{9} examines the modal and hyperintensional commitments of abstractionism, in particular necessitism, and epistemic hyperintensionality, epistemic utility theory, and the epistemology of abstraction. Elohim countenances a hyperintensional semantics for novel epistemic abstractionist modalities. Elohim suggests, too, that higher observational type theory can be applied to first-order abstraction principles in order to make first-order abstraction principles recursively enumerable, i.e. Turing machine computable, and that the truth of the first-order abstraction principle for two-dimensional hyperintensions is grounded in its being possibly recursively enumerable and the machine being physically implementable. Chapter \textbf{10} examines the philosophical significance of hyperintensional $\Omega$-logic in set theory and discusses the hyperintensionality of metamathematics. Chapter \textbf{11} provides a modal logic for rational intuition and provides a hyperintensional semantics. Chapter \textbf{12} avails of modal coalgebras to interpret the defining properties of indefinite extensibility, and avails of hyperintensional epistemic two-dimensional semantics in order to account for the interaction between interpretational and objective modalities and the truthmakers thereof. This yields the first hyperintensional category theory in the literature. Elohim invents a new mathematical trick in which first-order structures are treated as categories, and Vopenka's principle can be satisfied because of the elementary embeddings between the categories and generate Vopenka cardinals in the category of Set in category theory. Chapter \textbf{13} examines modal responses to the alethic paradoxes. Elohim provides a counter-example to epistemic closure for logical deduction. Chapter \textbf{14} examines, finally, the modal and hyperintensional semantics for the different types of intention and the relation of the latter to evidential decision theory. (shrink)

partial review of Thomas Nagel’s book, Mind and Cosmos: Why the Materialist Neo-Darwinian Conception of Nature Is Almost Certainly False is used to articulate some systems-theoretic ideas about the challenge of understanding subjective experience. The article accepts Nagel’s view that reductionist materialism fails as an approach to this challenge, but argues that seeking an explanation of mind based on emergence is more plausible than seeking one based on pan-psychism, which Nagel favors. However, the article proposes something similar to Nagel’s neutral (...) monism by positing a hierarchy of information processes that spans the domains of matter, life, and mind. As depicted in this hierarchy, subjective experience is emergent, but also continuous with informational phenomena at lower levels. (shrink)

We often describe lives (or parts of lives) as meaningful or as not meaningful. It is also common to characterize them as more or less meaningful. Some lives, we tend to think, are more meaningful than others. But how then can one compare lives with respect to how much meaning they contain? Can one? This paper argues that (i) only a notion of rough equality can be used when comparing different lives with respect to their meaning, and that (ii) the (...) relation of being more meaningful is not transitive. It follows that all attempts to rank different lives in terms of meaning can at best lead to partially indeterminate and incomplete rankings. One should also give up on the idea of “maximizing” meaning. I will use Thaddeus Metz’s important recent book “Meaning in Life. An Analytic Study” as a foil for my discussion. (shrink)

ArgumentIn the decades following World War II, the Cowles Commission for Research in Economics came to represent new technical standards that informed most advances in economic theory. The public emergence of this community was manifest at a conference held in June 1949 titledActivity Analysis of Production and Allocation. New ideas in optimization theory, linked to linear programming, developed from the conference's papers. The authors’ history of this event situates the Cowles Commission among the institutions of postwar science in-between National Laboratories (...) and the supreme discipline of Cold War academia, mathematics. Although the conference created the conditions under which economics, as a discipline, would transform itself, the participants themselves had little concern for the intellectual battles that had defined prewar university economics departments. The authors argue that the conference signaled the birth of a new intellectual culture in economic science based on shared scientific norms and techniques un-interrogated by conflicting notions of the meaning of either science or economics. (shrink)

A cursory glance at the list of Nobel Laureates for Economics is sufficient to confirm Stanovich’s description of the project to evaluate human rationality as seminal. Herbert Simon, Reinhard Selten, John Nash, Daniel Kahneman, and others, were awarded their prizes less for their work in economics, per se, than for their work on rationality, as such. Although philosophical works have for millennia attempted to describe, explicate and evaluate individual and collective aspects of rationality, new impetus was brought to this endeavor (...) over the last century as mathematical logic along with the social and behavioral sciences emerged. Yet more recently, over the last several decades, propelled by the emergence of artificial intelligence, cognitive science, evolutionary psychology, neuropsychology, and related fields, even more sophisticated approaches to the study of rationality have emerged. (shrink)

This paper presents a new solution to the problems for orthodox decision theory posed by the Pasadena game and its relatives. I argue that a key question raised by consideration of these gambles is whether evaluative compositionality (as I term it) is a requirement of rationality: is the value that an ideally rational agent places on a gamble determined by the values that she places on its possible outcomes, together with their mode of composition into the gamble (i.e. the probabilities (...) assigned to them)? The paper first outlines a certain simple response to the Pasadena game and identifies two problems with this response, the second of which is that it leads to a wholesale violation of evaluative compositionality. I then argue that rationality does not require decision makers to factor in outcomes of arbitrarily low probability. A method for making decisions which flows from this basic idea is then developed, and it is shown that this decision method (Truncation) leads to a limited — as opposed to wholesale — violation of evaluative compositionality. The paper then argues that the truncation method yields solutions to the problems posed by the Pasadena game and its relatives that are both attractive in themselves and superior to those yielded by alternative proposals in the literature. (shrink)

This paper starts out from the proposition that case-based decision theory is an appropriate tool to explain human decision behavior in situations of structural ignorance. Although the developers of CBDT suggest its reality adequacy, CBDT has not yet been tested empirically very often, especially not in repetitive decision situations. Therefore, our main objective is to analyse the decision behavior of subjects in a repeated-choice experiment by comparing the explanation power of CBDT to reinforcement learning and to classical decision criteria under (...) uncertainty namely maximin, maximax, and pessimism-optimism. Our findings substantiate a predominant significantly higher validity of CBDT compared to the classical criteria and to reinforcement learning. For this reason, the experimental results confirm the suggested reality adequacy of CBDT in repetitive decision situations of structural ignorance. (shrink)

The emergence of the two facets of social capital, the individual and the collective, has contributed to much of the confusion in the field of social capital. The overall objective of this article is to elaborate on a theoretical model aiming at clarifying some bridges between the facets and dimensions of social capital previously suggested in the literature. Initially, the article shortly presents and discusses some important definitions of social capital. Furthermore, limitations and shortcomings of previous definitions are discussed. Moreover, (...) a theoretical model is elaborated on suggesting that social capital comprises social resources that evolve in accessible social networks or social structures characterized by mutual trust. This model also emphasises some of the potential dark sides of social capital. The presented definition does not definitively address the theoretical uncertainties in the field; however, it suggests that a resource-oriented notion of social capital could be useful in bridging the facets of social capital. (shrink)

Note posted 9 Jun 08 : Modifications made today include a new section on predictive validity, and addition of recently published article and in in-press article, both by Nosek & Hansen, under the "CULTURE VS. PERSON" heading, which replaces a previously listed unpublished ms. of theirs. I continue to encourage all interested to send material that they are willing to be included on this page. Please also to let me know about errors, including faulty links.

On the orthodox view in economics, interpersonal comparisons of utility are not empirically meaningful, and "hence" impossible. To reassess this view, this paper draws on the parallels between the problem of interpersonal comparisons of utility and the problem of translation of linguistic meaning, as explored by Quine. I discuss several cases of what the empirical evidence for interpersonal comparisonsof utility might be and show that, even on the strongest of these, interpersonal comparisons are empirically underdetermined and, if we also deny (...) any appropriate truth of the matter, indeterminate. However, the underdetermination can be broken non-arbitrarily (though not purely empirically) if (i) we assign normative significance to certain states of affairs or (ii) we posit a fixed connection between certain empirically observable proxies and utility. I conclude that, even if interpersonal comparisons are not empirically meaningful, they are not in principle impossible. (shrink)

Traditionally, epistemologists have distinguished between epistemic and pragmatic goals. In so doing, they presume that much of game theory is irrelevant to epistemic enterprises. I will show that this is a mistake. Even if we restrict attention to purely epistemic motivations, members of epistemic groups will face a multitude of strategic choices. I illustrate several contexts where individuals who are concerned solely with the discovery of truth will nonetheless face difficult game theoretic problems. Examples of purely epistemic coordination problems and (...) social dilemmas will be presented. These show that there is a far deeper connection between economics and epistemology than previous appreciated. (shrink)

A decade after the financial crisis, there is a growing consensus that the neoclassical approach to economics has failed, and that new approaches are needed. This paper argues that economics has been trying to solve the wrong problem. Economics sees itself as the science of scarcity, but instead it should be the science of money. Just as physicists' ideas about quantum matter were formed by studying the exchange of particles at the subatomic level, so economics should begin by analysing the (...) properties of money-based transactions, which like quantum entities have a fundamentally dualistic nature. By building on ideas from quantum money, quantum finance and quantum social science, this paper shows that the economy is an archetypal example of a quantum social system, complete with its own versions of measurement uncertainty, entanglement, and so on. This leads to a proposal for a quantum economics, which is to neoclassical economics what quantum physics is to classical physics. (shrink)

That the present day society profits from research in many areas is evident. This has stimulated a keen desire to emulate similarly advantageous contributions in other areas. It appears to imply not only a need to know how to (better) support action in general or any action, but also how to support the act of making "better" itself (better businesses, better houses, better emotions, better objectives, etc.). Developing the latter type of knowledge has proved to pose a major challenge, however. (...) Although the challenge has been taken up in areas such as social policy, economics, therapy, management, architecture, design, and others, leading to a number of responses, a complete characterisation seems still to be lacking. Such a characterisation is attempted in this article. Typical characteristics are the inclusion of non-observational experiences and a simultaneous striving for individual and collective high quality. (shrink)

In this paper I discuss the kinds of idealisations invoked in normative theories—logic, epistemology, and decision theory. I argue that very often the so-called norms of rationality are in fact mere idealisations invoked to make life easier. As such, these idealisations are not too different from various idealisations employed in scientific modelling. Examples of the latter include: fluids are incompressible (in fluid mechanics), growth rates are constant (in population ecology), and the gravitational influence of distant bodies can be ignored (in (...) celestial mechanics). Thinking of logic, epistemology, and decision theory as normative models employing various idealisations of these kinds, changes the way we approach the justification of the models in question. (shrink)

Difficulties over probability have often been considered fatal to the Everett interpretation of quantum mechanics. Here I argue that the Everettian can have everything she needs from `probability' without recourse to indeterminism, ignorance, primitive identity over time or subjective uncertainty: all she needs is a particular *rationality principle*. The decision-theoretic approach recently developed by Deutsch and Wallace claims to provide just such a principle. But, according to Wallace, decision theory is itself applicable only if the correct attitude to a future (...) Everettian measurement outcome is subjective uncertainty. I argue that subjective uncertainty is not to be had, but I offer an alternative interpretation that enables the Everettian to live without uncertainty: we can justify Everettian decision theory on the basis that an Everettian should *care about* all her future branches. The probabilities appearing in the decision-theoretic representation theorem can then be interpreted as the degrees to which the rational agent cares about each future branch. This reinterpretation, however, reduces the intuitive plausibility of one of the Deutsch -Wallace axioms. (shrink)

Other-perspective taking, distancing, time discounting as well as risk and loss aversion highly affect decision-making. Even though they influence each other, so far these cognitive processes have been unrelated or only partly related to each other in neuroscience. This article proposes a philosophical interpretation of these cognitive processes that is elaborated in the updated theory of Adam Smith’s prudence. The UTSP is inspired by Smith’s account of prudence and is in line with the neuroscientific and behavioral studies on OPT, distancing, (...) time discounting as well as risk and loss aversion. The UTSP represents a framework aiming to interpret and connect these cognitive processes and providing a consistent and empirically sound account of a “Smithianly” prudent style of decision-making. The two pillars of the UTSP are the shift of perspective in space and time and loss aversion. On the basis of this theory, a normative updated theory of Smithian prudence is outlined. The latter is useful for moral philosophy for two reasons: firstly, according to preliminary evidence, it is effective in guiding the agent in decisional contexts in which her well-being is at stake and she can affect other people with her actions. Secondly, since the NUTSP is based on neuroscientific findings on decision-making, it has a sound empirical basis that prevents a source of alienation for the agent. (shrink)

The thesis is a philosophical analysis of the consumption based capital asset pricing model, investigating in particular its epistemological and methodological foundations. Financial markets are integral parts of advanced and developing economies. They matter because they channel unspent household income into banks’ savings accounts and assets such as bonds and stocks. Financial economists have traditionally taken interest in the pricing mechanism that underlies this capital allocation. The consumption based capital asset pricing model is a prominent effort to describe, explain and (...) predict such prices. It tells a story of investors’ trade-off between consumption now and later and which portfolio of assets to hold. The CCAPM based narrative intuitively makes sense, and the chosen methodology involving theoretical assumption, mathematical models and empirical tests follows the professions’ standards of good scientific practise. But does CCAPM’s research programme provide knowledge for use? My thesis seeks to answer this question in a novel way. Instead of embarking on yet another asset pricing research project, I let Philosophy of Science inform my analysis. Following a “primer” introducing essential CCAPM topics and notations, I discuss, in turn, its theoretical foundation, mathematical model, and empirical test results from a philosophy of science perspective. I find that a few fundamental principles and several auxiliary assumptions combine to develop a simplified, partial and idealized theory of investors, financial markets and assets. The model reflects and represents this theory but also makes narrow claims that are distances away from the real situations they target. Unsurprisingly, ideal model assertions fail standard statistical tests of significance. I conclude that mathematical deductive modelling rooted in orthodox, a priori based fundamental principles create ideal and fictional settings that limit their scope and portability. The development of even more granular models within this orthodox paradigm that searches for “event regularities” will not render the desired knowledge for use. The real situations are possibly too complex to be captured in simplified assumptions, ideal theories and mathematical structures. Novel methodological and ontological approaches to asset pricing are in demand. Hence, claims about tendencies in the real data might replace the current focus on point-forecasts. (shrink)

Normative theories can be useful in developing descriptive theories, as when normative subjective expected utility theory is used to develop descriptive rational choice theory and behavioral game theory. questions are also the essence of theories of moral reasoning, a domain of higher mental processing that could not survive without normative considerations.

Chamberlin insists on its validity in contributing to our thinking about the place of ethics in international affairs and in clarifying both the dangers and potential areas of cooperation inherent in many international relationships.

The main goal of this paper is to investigate which normative requirements, or axioms, lead to exponential and quasi-hyperbolic forms of discounting. Exponential discounting has a well-established axiomatic foundation originally developed by Koopmans :287–309, 1960, 1972) and Koopmans et al. :82–100, 1964) with subsequent contributions by several other authors, including Bleichrodt et al. :341–347, 2008). The papers by Hayashi :343–352, 2003) and Olea and Strzalecki :1449–1499, 2014) axiomatize quasi-hyperbolic discounting. The main contribution of this paper is to provide an alternative (...) foundation for exponential and quasi-hyperbolic discounting, with simple, transparent axioms and relatively straightforward proofs. Using techniques by Fishburn and Harvey :1123–1139, 1986), we show that Anscombe and Aumann’s :199–205, 1963) version of Subjective Expected Utility theory can be readily adapted to axiomatize the aforementioned types of discounting, in both finite and infinite horizon settings. (shrink)

Rational choice theory analyzes how an agent can rationally act, given his or her preferences, but says little about where those preferences come from. Preferences are usually assumed to be fixed and exogenously given. Building on related work on reasons and rational choice, we describe a framework for conceptualizing preference formation and preference change. In our model, an agent's preferences are based on certain "motivationally salient" properties of the alternatives over which the preferences are held. Preferences may change as new (...) properties of the alternatives become salient or previously salient properties cease to be salient. Our approach captures endogenous preferences in various contexts and helps to illuminate the distinction between formal and substantive concepts of rationality, as well as the role of perception in rational choice. (shrink)

Network analysis is increasingly appreciated as a methodology in the social sciences. In recent years, it is also receiving attention among historians of science. History of economics is no exception in that researchers have begun to use network analysis to study a variety of topics, including collaborations and interactions in scientific communities, the spread of economic theories within and across fields, or the formation of new specialties in the discipline of economics. Against this backdrop, a debate is emerging about how (...) network analysis can help address questions that are pertinent to the history of economics. With this paper, we want to push this debate one step forward by offering and discussing five reasons why network analysis should have a future in the history of economics. (shrink)

Are shapes of objects intrinsic to them? The issue has been intensely debated. Special relativity (SR) adds a new dimension to it by relativizing three-dimensional (3D) shapes not just to times, but to times-in-frames. Arguably, however, such relativized spatial shapes are mere perspectival representations of an invariant, hence intrinsic, four-dimensional (4D) shape of an object in Minkowski spacetime. In a recent note, Matthew Davidson questions the intrinsicality of 4D shapes in SR. I show that his conclusion and the reasoning behind (...) it are in error. (shrink)

In a recent Analysis piece, John Shand (2014) argues that the Predictive Theory of Mind provides a unique explanation for why one cannot play chess against oneself. On the basis of this purported explanatory power, Shand concludes that we have an extra reason to believe that PTM is correct. In this reply, we first rectify the claim that one cannot play chess against oneself; then we move on to argue that even if this were the case, Shand’s argument does not (...) give extra weight to the Predictive Theory of Mind. (shrink)

Standard game theory cannot explain the selection of payoff-dominant outcomes that are best for all players in common-interest games. Theories of team reasoning can explain why such mutualistic cooperation is rational. They propose that teams can be agents and that individuals in teams can adopt a distinctive mode of reasoning that enables them to do their part in achieving Pareto-dominant outcomes. We show that it can be rational to play payoff-dominant outcomes, given that an agent group identifies. We compare team (...) reasoning to other theories that have been proposed to explain how people can achieve payoff-dominant outcomes, especially with respect to rationality. Some authors have hoped that it would be possible to develop an argument that it is rational to group identify. We identify some large—probably insuperable—problems with this project and sketch some more promising approaches, whereby the normativity of group identification rests on morality. (shrink)