Abstract
When people want to identify the causes of an event, assign credit or blame, or learn from their
mistakes, they often reflect on how things could have gone differently. In this kind of reasoning,
one considers a counterfactual world in which some events are different from their real-world
counterparts and considers what else would have changed. Researchers have recently proposed
several probabilistic models that aim to capture how people do (or should) reason about counterfactuals. We present a new model and show that it accounts better for human inferences
than several alternative models. Our model builds on the work of Pearl (2000), and extends
his approach in a way that accommodates backtracking inferences and that acknowledges the
difference between counterfactual interventions and counterfactual observations. We present
six new experiments and analyze data from four experiments carried out by Rips (2010), and
the results suggest that the new model provides an accurate account of both mean human judgments and the judgments of individuals.