Decisions under Ignorance and the Individuation of States of Nature

Thought: A Journal of Philosophy 11 (2):86-92 (2022)
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Abstract

How do you make decisions under ignorance? That is, how do you decide when you lack subjective probabilities for some of your options’ possible outcomes? One answer is that you follow the Laplace Rule: you assign an equal probability to each state of nature for which you lack a subjective probability (that is, you use the Principle of Indifference) and then you maximize expected utility. The most influential objection to the Laplace Rule is that it is sensitive to the individuation of states of nature. This sensitivity is problematic because the individuation of states seems arbitrary. In this paper, however, I argue that this objection proves too much. I argue that all plausible rules for decisions under ignorance are sensitive to the individuation of states of nature.

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Johan E. Gustafsson
University of Texas at Austin

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