Stochastic independence has a complex status in probability theory. It is not part of the definition of a probability measure, but it is nonetheless an essential property for the mathematical development of this theory. Bayesian decision theorists such as Savage can be criticized for being silent about stochastic independence. From their current preference axioms, they can derive no more than the definitional properties of a probability measure. In a new framework of twofold uncertainty, we introduce preference (...) axioms that entail not only these definitional properties, but also the stochastic independence of the two sources of uncertainty. This goes some way towards filling a curious lacuna in Bayesian decision theory. (shrink)

The ontology of decision theory has been subject to considerable debate in the past, and discussion of just how we ought to view decision problems has revealed more than one interesting problem, as well as suggested some novel modifications of classical decision theory. In this paper it will be argued that Bayesian, or evidential, decision-theoretic characterizations of decision situations fail to adequately account for knowledge concerning the causal connections between acts, states, and (...) outcomes in decision situations, and so they are incomplete. Second, it will be argues that when we attempt to incorporate the knowledge of such causal connections into Bayesian decision theory, a substantial technical problem arises for which there is no currently available solution that does not suffer from some damning objection or other. From a broader perspective, this then throws into question the use of decision theory as a model of human or machine planning. (shrink)

This essay makes the case for, in the phrase of Angelika Kratzer, packing the fruits of the study of rational decision-making into our semantics for deontic modals—specifically, for parametrizing the truth-condition of a deontic modal to things like decision problems and decision theories. Then it knocks it down. While the fundamental relation of the semantic theory must relate deontic modals to things like decision problems and theories, this semantic relation cannot be intelligibly understood as representing (...) the conditions under which a deontic modal is true. Rather it represents the conditions under which it is accepted by a semantically competent agent. This in turn motivates a reorientation of the whole of semantic theorizing, away from the truth-conditional paradigm, toward a form of Expressivism. (shrink)

My dissertation is about Bayesian rationality for non-ideal agents. I show how to derive subjective probabilities from preferences using much weaker rationality assumptions than other standard representation theorems. I argue that non-ideal agents might be uncertain about how they will update on new information and consider two consequences of this uncertainty: such agents should sometimes reject free information and make choices which, taken together, yield sure loss. The upshot is that Bayesian rationality for non-ideal agents makes very different (...) normative demands than ideal Bayesian rationality. (shrink)

In his classic book “the Foundations of Statistics” Savage developed a formal system of rational decision making. The system is based on (i) a set of possible states of the world, (ii) a set of consequences, (iii) a set of acts, which are functions from states to consequences, and (iv) a preference relation over the acts, which represents the preferences of an idealized rational agent. The goal and the culmination of the enterprise is a representation theorem: Any preference relation (...) that satisfies certain arguably acceptable postulates determines a (finitely additive) probability distribution over the states and a utility assignment to the consequences, such that the preferences among acts are determined by their expected utilities. Additional problematic assumptions are however required in Savage's proofs. First, there is a Boolean algebra of events (sets of states) which determines the richness of the set of acts. The probabilities are assigned to members of this algebra. Savage's proof requires that this be a σ-algebra (i.e., closed under infinite countable unions and intersections), which makes for an extremely rich preference relation. On Savage's view we should not require subjective probabilities to be σ-additive. He therefore finds the insistence on a σ-algebra peculiar and is unhappy with it. But he sees no way of avoiding it. Second, the assignment of utilities requires the constant act assumption: for every consequence there is a constant act, which produces that consequence in every state. This assumption is known to be highly counterintuitive. The present work contains two mathematical results. The first, and the more difficult one, shows that the σ-algebra assumption can be dropped. The second states that, as long as utilities are assigned to finite gambles only, the constant act assumption can be replaced by the more plausible and much weaker assumption that there are at least two non-equivalent constant acts. The second result also employs a novel way of deriving utilities in Savage-style systems -- without appealing to von Neumann-Morgenstern lotteries. The paper discusses the notion of “idealized agent" that underlies Savage's approach, and argues that the simplified system, which is adequate for all the actual purposes for which the system is designed, involves a more realistic notion of an idealized agent. (shrink)

It is often claimed that the greatest value of the Bayesian framework in cognitive science consists in its unifying power. Several Bayesian cognitive scientists assume that unification is obviously linked to explanatory power. But this link is not obvious, as unification in science is a heterogeneous notion, which may have little to do with explanation. While a crucial feature of most adequate explanations in cognitive science is that they reveal aspects of the causal mechanism that produces the phenomenon (...) to be explained, the kind of unification afforded by the Bayesian framework to cognitive science does not necessarily reveal aspects of a mechanism. Bayesian unification, nonetheless, can place fruitful constraints on causal–mechanical explanation. 1 Introduction2 What a Great Many Phenomena Bayesian Decision Theory Can Model3 The Case of Information Integration4 How Do Bayesian Models Unify?5 Bayesian Unification: What Constraints Are There on Mechanistic Explanation?5.1 Unification constrains mechanism discovery5.2 Unification constrains the identification of relevant mechanistic factors5.3 Unification constrains confirmation of competitive mechanistic models6 ConclusionAppendix. (shrink)

Market crises amplify fear, disrupting rational decision-making of stock investment. This study examines the relationship between investors’ information priorities—such as intuition, company performance, technical analysis, and other factors—and their fear responses (freeze, flight, and hiding) during market crashes. Using the Bayesian Mindsponge Framework (BMF) to analyze data from 1,526 investors in China and Vietnam, the findings reveal complex dynamics. We found positive associations between investors’ prioritization of social influence and intuition for investment decision-making with being freeze (i.e., (...) not knowing what to do with the owned stock), between prioritization of professionals’ evaluation and intuition with fleeing (i.e. giving up stock investment permanently), and between prioritization of professionals’ evaluation and social influence with hiding (i.e., stopping investing in stock for a while). In contrast, prioritization of companies’ performance metrics (e.g., net profit, debt, etc.) was negatively associated with being freeze, fleeing, and hiding. Meanwhile, prioritization of professionals’ evaluation, technical analysis, and liquidity was negatively associated with being freeze, fleeing, and hiding, respectively. The study highlights the importance of disseminating transparent, accurate information through government and media channels, along with implementing financial education programs, to promote rational investment decisions and reduce fear-driven behaviors. (shrink)

The notion of comparative probability defined in Bayesian subjectivist theory stems from an intuitive idea that, for a given pair of events, one event may be considered “more probable” than the other. Yet it is conceivable that there are cases where it is indeterminate as to which event is more probable, due to, e.g., lack of robust statistical information. We take that these cases involve indeterminate comparative probabilities. This paper provides a Savage-style decision-theoretic foundation for indeterminate comparative (...) probabilities. (shrink)

The predictive processing literature contains at least two different versions of the framework with different theoretical resources at their disposal. One version appeals to so-called optimistic priors to explain agents’ motivation to act (call this optimistic predictive processing). A more recent version appeals to expected free energy minimization to explain how agents can decide between different action policies (call this preference predictive processing). The difference between the two versions has not been properly appreciated, and they are not sufficiently separated in (...) the literature. They constitute two different theories with strikingly different accounts of motivation and action. By reducing all desire-like constructs to belief-like constructs, optimistic predictive processing entails a substantial revision of standard accounts of motivation and action in philosophy and cognitive science. By contrast, preference predictive processing introduces desire-like constructs that play Humean motivational roles in the explanation of action. In this Humean iteration, predictive processing resembles other prominent computational frameworks implementing a distinction between beliefs and desires, such as reinforcement learning and Bayesian decision theory. Ultimately, predictive processing faces a dilemma between parsimony of mental constructs and completeness of its explanations of agency and the mind. (shrink)

Ambiguity occurs insofar as a reasoner lacks information about the relevant physical probabilities. There are objections to the application of standard Bayesian inductive logic and decision theory in contexts of significant ambiguity. A variety of alternative frameworks for reasoning under ambiguity have been proposed. Two of the most prominent are Imprecise Bayesianism and Dempster–Shafer theory. We compare these inductive logics with respect to the Ambiguity Dilemma, which is a problem that has been raised for Imprecise Bayesianism. (...) We develop an agent-based model comparison that isolates the difference between the two inductive logics in their updating methods. We find that Dempster–Shafer theory does not avoid the Ambiguity Dilemma. We discuss the implications of this result. (shrink)

It would be good to have a Bayesian decision theory that assesses our decisions and thinking according to everyday standards of rationality — standards that do not require logical omniscience (Garber 1983, Hacking 1967). To that end we develop a “fragmented” decision theory in which a single state of mind is represented by a family of credence functions, each associated with a distinct choice condition (Lewis 1982, Stalnaker 1984). The theory imposes a local coherence (...) assumption guaranteeing that as an agent's attention shifts, successive batches of "obvious" logical information become available to her. A rule of expected utility maximization can then be applied to the decision of what to attend to next during a train of thought. On the resulting theory, rationality requires ordinary agents to be logically competent and to often engage in trains of thought that increase the unification of their states of mind. But rationality does not require ordinary agents to be logically omniscient. (shrink)

This paper applies Bayesian theories to critically analyse and offer reforms of intelligence analysis, collection, analysis, and decision making on the basis of Human Intelligence, Signals Intelligence, and Communication Intelligence. The article criticises the reliabilities of existing intelligence methodologies to demonstrate the need for Bayesian reforms. The proposed epistemic reform program for intelligence analysis should generate more reliable inferences. It distinguishes the transmission of knowledge from its generation, and consists of Bayesian three stages modular model for (...) the generation of reliable intelligence from multiple coherent and independent testimonial sources, and for the tracing and analysis of intelligence failures. The paper concludes with suggestions for further research, the development of artificial intellignce that may measure coherence and reliability of HUMINT sources and infer intelligence following the outlined general modular model. (shrink)

This paper addresses the issue of finite versus countable additivity in Bayesian probability and decision theory -- in particular, Savage's theory of subjective expected utility and personal probability. I show that Savage's reason for not requiring countable additivity in his theory is inconclusive. The assessment leads to an analysis of various highly idealised assumptions commonly adopted in Bayesian theory, where I argue that a healthy dose of, what I call, conceptual realism is often (...) helpful in understanding the interpretational value of sophisticated mathematical structures employed in applied sciences like decision theory. In the last part, I introduce countable additivity into Savage's theory and explore some technical properties in relation to other axioms of the system. (shrink)

I present a solution to the epistemological or characterisation problem of induction. In part I, Bayesian Confirmation Theory (BCT) is discussed as a good contender for such a solution but with a fundamental explanatory gap (along with other well discussed problems); useful assigned probabilities like priors require substantive degrees of belief about the world. I assert that one does not have such substantive information about the world. Consequently, an explanation is needed for how one can be licensed to (...) act as if one has substantive information about the world when one does not. I sketch the outlines of a solution in part I, showing how it differs from others, with full details to follow in subsequent parts. The solution is pragmatic in sentiment (though differs in specifics to arguments from, for example, William James); the conceptions we use to guide our actions are and should be at least partly determined by preferences. This is cashed out in a reformulation of decision theory motivated by a non-reductive formulation of hypotheses and logic. A distinction emerges between initial assumptions--that can be non-dogmatic--and effective assumptions that can simultaneously be substantive. An explanation is provided for the plausibility arguments used to explain assigned probabilities in BCT. -/- In subsequent parts, logic is constructed from principles independent of language and mind. In particular, propositions are defined to not have form. Probabilities are logical and uniquely determined by assumptions. The problems considered fatal to logical probabilities--Goodman's `grue' problem and the uniqueness of priors problem are dissolved due to the particular formulation of logic used. Other problems such as the zero-prior problem are also solved. -/- A universal theory of (non-linguistic) meaning is developed. Problems with counterfactual conditionals are solved by developing concepts of abstractions and corresponding pictures that make up hypotheses. Spaces of hypotheses and the version of Bayes' theorem that utilises them emerge from first principles. -/- Theoretical virtues for hypotheses emerge from the theory. Explanatory force is explicated. The significance of effective assumptions is partly determined by combinatoric factors relating to the structure of hypotheses. I conjecture that this is the origin of simplicity. (shrink)

Adam Elga (Philosophers’ Imprint, 10(5), 1–11, 2010) presents a diachronic puzzle to supporters of imprecise credences and argues that no acceptable decision rule for imprecise credences can deliver the intuitively correct result. Elga concludes that agents should not hold imprecise credences. In this paper, I argue for a two-part thesis. First, I show that Elga’s argument is incomplete: there is an acceptable decision rule that delivers the intuitive result. Next, I repair the argument by offering a more elaborate (...) diachronic puzzle that is more difficult for imprecise Bayesians to avoid. (shrink)

The major competing statistical paradigms share a common remarkable but unremarked thread: in many of their inferential applications, different probability interpretations are combined. How this plays out in different theories of inference depends on the type of question asked. We distinguish four question types: confirmation, evidence, decision, and prediction. We show that Bayesian confirmation theory mixes what are intuitively “subjective” and “objective” interpretations of probability, whereas the likelihood-based account of evidence melds three conceptions of what constitutes an (...) “objective” probability. (shrink)

To reconcile the standard possible worlds model of knowledge with the intuition that ordinary agents fall far short of logical omniscience, a Stalnakerian strategy appeals to two components. The first is the idea that mathematical and logical knowledge is at bottom metalinguistic knowledge. The second is the idea that non-ideal minds are often fragmented. In this paper, we investigate this Stalnakerian reconciliation strategy and argue, ultimately, that it fails. We are not the first to complain about the Stalnakerian strategy. But (...) in contrast to existing complaints, we want to cause trouble for the strategy directly on its home turf. That is, we will advance our objection while granting both the plausibility of the fragmentation component—save for an extreme version of it—and that of the metalinguistic component. Once our central objection to the Stalnakerian strategy is in place, we will show how it negatively affects Adam Elga and Augustín Rayo’s recent attempt to apply the Stalnakerian strategy in the context of Bayesian decision theory. (shrink)

This paper offers a fine analysis of different versions of the well known sure-thing principle. We show that Savage's formal formulation of the principle, i.e., his second postulate (P2), is strictly stronger than what is intended originally.

How do agents with limited cognitive capacities flourish in informationally impoverished or unexpected circumstances? Aristotle argued that human flourishing emerged from knowing about the world and our place within it. If he is right, then the virtuous processes that produce knowledge, best explain flourishing. Influenced by Aristotle, virtue epistemology defends an analysis of knowledge where beliefs are evaluated for their truth and the intellectual virtue or competences relied on in their creation. However, human flourishing may emerge from how degrees of (...) ignorance are managed in an uncertain world. Perhaps decision-making in the shadow of knowledge best explains human wellbeing—a Bayesian approach? In this dissertation I argue that a hybrid of virtue and Bayesian epistemologies explains human flourishing—what I term homeostatic epistemology. Homeostatic epistemology supposes that an agent has a rational credence p when p is the product of reliable processes aligned with the norms of probability theory; whereas an agent knows that p when a rational credence p is the product of reliable processes such that: 1) p meets some relevant threshold for belief, 2) p coheres with a satisficing set of relevant beliefs and, 3) the relevant set of beliefs is coordinated appropriately to meet the integrated aims of the agent. Homeostatic epistemology recognizes that justificatory relationships between beliefs are constantly changing to combat uncertainties and to take advantage of predictable circumstances. Contrary to holism, justification is built up and broken down across limited sets like the anabolic and catabolic processes that maintain homeostasis in the cells, organs and systems of the body. It is the coordination of choristic sets of reliably produced beliefs that create the greatest flourishing given the limitations inherent in the situated agent. (shrink)

There is a long-standing disagreement in the philosophy of probability and Bayesian decision theory about whether an agent can hold a meaningful credence about an upcoming action, while she deliberates about what to do. Can she believe that it is, say, 70% probable that she will do A, while she chooses whether to do A? No, say some philosophers, for Deliberation Crowds Out Prediction (DCOP), but others disagree. In this paper, we propose a valid core for DCOP, (...) and identify terminological causes for some of the apparent disputes. (shrink)

When does it make sense to act randomly? A persuasive argument from Bayesian decision theory legitimizes randomization essentially only in tie-breaking situations. Rational behaviour in humans, non-human animals, and artificial agents, however, often seems indeterminate, even random. Moreover, rationales for randomized acts have been offered in a number of disciplines, including game theory, experimental design, and machine learning. A common way of accommodating some of these observations is by appeal to a decision-maker’s bounded computational resources. (...) Making this suggestion both precise and compelling is surprisingly difficult. Toward this end, I propose two fundamental rationales for randomization, drawing upon diverse ideas and results from the wider theory of computation. The first unifies common intuitions in favour of randomization from the aforementioned disciplines. The second introduces a deep connection between randomization and memory: access to a randomizing device is provably helpful for an agent burdened with a finite memory. Aside from fit with ordinary intuitions about rational action, the two rationales also make sense of empirical observations in the biological world. Indeed, random behaviour emerges more or less where it should, according to the proposal. (shrink)

It is well known that classical, aka ‘sharp’, Bayesian decision theory, which models belief states as single probability functions, faces a number of serious difficulties with respect to its handling of agnosticism. These difficulties have led to the increasing popularity of so-called ‘imprecise’ models of decision-making, which represent belief states as sets of probability functions. In a recent paper, however, Adam Elga has argued in favour of a putative normative principle of sequential choice that he claims (...) to be borne out by the sharp model but not by any promising incarnation of its imprecise counterpart. After first pointing out that Elga has fallen short of establishing that his principle is indeed uniquely borne out by the sharp model, I cast aspersions on its plausibility. I show that a slight weakening of the principle is satisfied by at least one, but interestingly not all, varieties of the imprecise model and point out that Elga has failed to motivate his stronger commitment. (shrink)

My dissertation explores the ways in which Rudolf Carnap sought to make philosophy scientific by further developing recent interpretive efforts to explain Carnap’s mature philosophical work as a form of engineering. It does this by looking in detail at his philosophical practice in his most sustained mature project, his work on pure and applied inductive logic. I, first, specify the sort of engineering Carnap is engaged in as involving an engineering design problem and then draw out the complications of design (...) problems from current work in history of engineering and technology studies. I then model Carnap’s practice based on those lessons and uncover ways in which Carnap’s technical work in inductive logic takes some of these lessons on board. This shows ways in which Carnap’s philosophical project subtly changes right through his late work on induction, providing an important corrective to interpretations that ignore the work on inductive logic. Specifically, I show that paying attention to the historical details of Carnap’s attempt to apply his work in inductive logic to decision theory and theoretical statistics in the 1950s and 1960s helps us understand how Carnap develops and rearticulates the philosophical point of the practical/theoretical distinction in his late work, offering thus a new interpretation of Carnap’s technical work within the broader context of philosophy of science and analytical philosophy in general. (shrink)

Probability updating via Bayes' rule often entails extensive informational and computational requirements. In consequence, relatively few practical applications of Bayesian adaptive control techniques have been attempted. This paper discusses an alternative approach to adaptive control, Bayesian in spirit, which shifts attention from the updating of probability distributions via transitional probability assessments to the direct updating of the criterion function, itself, via transitional utility assessments. Results are illustrated in terms of an adaptive reinvestment two-armed bandit problem.

Suboptimality of decision making needs no explanation. High level accounts of suboptimality in diverse tasks cannot add up to a mechanistic theory of perceptual decision making. Mental processes operate on the contents of information brought by the experimenter and the participant to the task, not on the amount of information in the stimuli without regard to physical and social context.

Enjoying great popularity in decision theory, epistemology, and philosophy of science, Bayesianism as understood here is fundamentally concerned with epistemically ideal rationality. It assumes a tight connection between evidential probability and ideally rational credence, and usually interprets evidential probability in terms of such credence. Timothy Williamson challenges Bayesianism by arguing that evidential probabilities cannot be adequately interpreted as the credences of an ideal agent. From this and his assumption that evidential probabilities cannot be interpreted as the actual credences (...) of human agents either, he concludes that no interpretation of evidential probabilities in terms of credence is adequate. I argue to the contrary. My overarching aim is to show on behalf of Bayesians how one can still interpret evidential probabilities in terms of ideally rational credence and how one can maintain a tight connection between evidential probabilities and ideally rational credence even if the former cannot be interpreted in terms of the latter. By achieving this aim I illuminate the limits and prospects of Bayesianism. (shrink)

Newcomb’s problem is a decision puzzle whose difficulty and interest stem from the fact that the possible outcomes are probabilistically dependent on, yet causally independent of, the agent’s options. The problem is named for its inventor, the physicist William Newcomb, but first appeared in print in a 1969 paper by Robert Nozick [12]. Closely related to, though less well-known than, the Prisoners’ Dilemma, it has been the subject of intense debate in the philosophical literature. After three decades, the issues (...) remain unresolved. Newcomb’s problem is of genuine importance because it poses a challenge to the theoretical adequacy of orthodox Bayesian decision theory. It has led both to the development of causal decision theory and to efforts aimed at defending the adequacy of the orthodox theory. (shrink)

Nicholas Rescher claims that rational decision theory “may leave us in the lurch”, because there are two apparently acceptable ways of applying “the standard machinery of expected-value analysis” to his Dr. Psycho paradox which recommend contradictory actions. He detects a similar contradiction in Newcomb’s problem. We consider his claims from the point of view of both Bayesian decision theory and causal decision theory. In Dr. Psycho and in Newcomb’s Problem, Rescher has used premisses (...) about probabilities which he assumes to be independent. From the former point of view, we show that the probability premisses are not independent but inconsistent, and their inconsistency is provable within probability theory alone. From the latter point of view, we show that their consistency can be saved, but then the contradictory recommendations evaporate. Consequently, whether one subscribes to evidential or causal decision theory, rational decision theory is not in any way vitiated by Rescher’s arguments. (shrink)

The paper presents a criticism of the metaphor of Direction of Fit as a criterion for beliefs/desires. It sketches an alternative account of belief/desire distinction based on Bayesian Decision Theory.

Using “brute reason” I will show why there can be only one valid interpretation of probability. The valid interpretation turns out to be a further refinement of Popper’s Propensity interpretation of probability. Via some famous probability puzzles and new thought experiments I will show how all other interpretations of probability fail, in particular the Bayesian interpretations, while these puzzles do not present any difficulties for the interpretation proposed here. In addition, the new interpretation casts doubt on some concepts often (...) taken as basic and unproblematic, like rationality, utility and expectation. This in turn has implications for decision theory, economic theory and the philosophy of physics. (shrink)

The current study is conducted to examine how investors’ information priorities for investment decision-making influence their fear during the crisis.

Simultaneous hypothesis tests can fail to provide results that meet logical requirements. For example, if A and B are two statements such that A implies B, there exist tests that, based on the same data, reject B but not A. Such outcomes are generally inconvenient to statisticians (who want to communicate the results to practitioners in a simple fashion) and non-statisticians (confused by conflicting pieces of information). Based on this inconvenience, one might want to use tests that satisfy logical requirements. (...) However, Izbicki and Esteves shows that the only tests that are in accordance with three logical requirements (monotonicity, invertibility and consonance) are trivial tests based on point estimation, which generally lack statistical optimality. As a possible solution to this dilemma, this paper adapts the above logical requirements to agnostic tests, in which one can accept, reject or remain agnostic with respect to a given hypothesis. Each of the logical requirements is characterized in terms of a Bayesian decision theoretic perspective. Contrary to the results obtained for regular hypothesis tests, there exist agnostic tests that satisfy all logical requirements and also perform well statistically. In particular, agnostic tests that fulfill all logical requirements are characterized as region estimator-based tests. Examples of such tests are provided. (shrink)

Tracking theories of mental representation posit a privileged relation between color representations and the color properties of objects. Tracking theories of mental representation have been used to motivate color realism as they posit that the function of color vision is to represent the colors of objects. It has been argued that tracking theories have a major flaw, namely they cannot account for reliable misrepresentation. It has further been suggested that reliable color misrepresentation is a live possibility. In this chapter, I (...) argue that the current evidence indicates that our color representations reliably misrepresent. This conclusion undermines tracking theories and the color realist theories they purport to motivate. (shrink)

When visual attention is directed away from a stimulus, neural processing is weak and strength and precision of sensory data decreases. From a computational perspective, in such situations observers should give more weight to prior expectations in order to behave optimally during a discrimination task. Here we test a signal detection theoretic model that counter-intuitively predicts subjects will do just the opposite in a discrimination task with two stimuli, one attended and one unattended: when subjects are probed to discriminate the (...) unattended stimulus, they rely less on prior information about the probed stimulus’ identity. The model is in part inspired by recent findings that attention reduces trial-by-trial variability of the neuronal population response and that they use a common criterion for attended and unattended trials. In five different visual discrimination experiments, when attention was directed away from the target stimulus, subjects did not adjust their response bias in reaction to a change in stimulus presentation frequency despite being fully informed and despite the presence of performance feedback and monetary and social incentives. This indicates that subjects did not rely more on the priors under conditions of inattention as would be predicted by a Bayes-optimal observer model. These results inform and constrain future models of Bayesian inference in the human brain. (shrink)

An expected utility model of individual choice is formulated which allows the decision maker to specify his available actions in the form of controls (partial contingency plans) and to simultaneously choose goals and controls in end-mean pairs. It is shown that the Savage expected utility model, the Marschak- Radner team model, the Bayesian statistical decision model, and the standard optimal control model can be viewed as special cases of this goal-control expected utility model.

Can an agent deliberating about an action A hold a meaningful credence that she will do A? 'No', say some authors, for 'Deliberation Crowds Out Prediction' (DCOP). Others disagree, but we argue here that such disagreements are often terminological. We explain why DCOP holds in a Ramseyian operationalist model of credence, but show that it is trivial to extend this model so that DCOP fails. We then discuss a model due to Joyce, and show that Joyce's rejection of DCOP rests (...) on terminological choices about terms such as 'intention', 'prediction', and 'belief'. Once these choices are in view, they reveal underlying agreement between Joyce and the DCOP-favouring tradition that descends from Ramsey. Joyce's Evidential Autonomy Thesis (EAT) is effectively DCOP, in different terminological clothing. Both principles rest on the so-called 'transparency' of first-person present-tensed reflection on one's own mental states. (shrink)

A given causal system can be represented in a variety of ways. How do agents determine which variables to include in their causal representations, and at what level of granularity? Using techniques from Bayesian networks, information theory, and decision theory, we develop a formal theory according to which causal representations reflect a trade-off between compression and informativeness, where the optimal trade-off depends on the decision-theoretic value of information for a given agent in a given (...) context. This theory predicts that, all else being equal, agents prefer causal models that are as compressed as possible. When compression is associated with information loss, however, all else is not equal, and our theory predicts that agents will favor compressed models only when the information they sacrifice is not informative with respect to the agent’s anticipated decisions. We then show, across six studies reported here (N=2,364) and one study reported in the supplemental materials (N=182), that participants’ preferences over causal models are in keeping with the predictions of our theory. Our theory offers a unification of different dimensions of causal evaluation identified within the philosophy of science (proportionality and stability), and contributes to a more general picture of human cognition according to which the capacity to create compressed (causal) representations plays a central role. (shrink)

In this paper epistemological, ontological and sociological questions concerning the statistical significance of sharp hypotheses in scientific research are investigated within the framework provided by Cognitive Constructivism and the FBST (Full Bayesian Significance Test). The constructivist framework is contrasted with the traditional epistemological settings for orthodox Bayesian and frequentist statistics provided by Decision Theory and Falsificationism.

We introduce an expected-value theory of linguistic modality that makes reference to expected utility and a likelihood-based confirmation measure for deontics and epistemics, respectively. The account is a probabilistic semantics for deontics and epistemics, yet it proposes that deontics and epistemics share a common core modal semantics, as in traditional possible-worlds analysis of modality. We argue that this account is not only theoretically advantageous, but also has far-reaching empirical consequences. In particular, we predict modal versions of reasoning fallacies from (...) the heuristics and biases literature. Additionally, we derive the modal semantics in an entirely transparent manner, as it is based on the compositional semantics of Korean modal expressions that are morphosyntactically decomposed into a conditional and an evaluative predicate. (shrink)

The aim of this study is to justify the belief that there are biological normative mechanisms that fulfill non-trivial causal roles in the explanations (as formulated by researchers) of actions and behaviors present in specific systems. One example of such mechanisms is the predictive mechanisms described and explained by predictive processing (hereinafter PP), which (1) guide actions and (2) shape causal transitions between states that have specific content and fulfillment conditions (e.g. mental states). Therefore, I am guided by a specific (...) theoretical goal associated with the need to indicate those conditions that should be met by the non-trivial theory of normative mechanisms and the specific models proposed by PP supporters. In this work, I use classical philosophical methods, such as conceptual analysis and critical reflection. I also analyze selected studies in the field of cognitive science, cognitive psychology, neurology, information theory and biology in terms of the methodology, argumentation and language used, in accordance with their theoretical importance for the issues discussed in this study. In this sense, the research presented here is interdisciplinary. My research framework is informed by the mechanistic model of explanation, which defines the necessary and sufficient conditions for explaining a given phenomenon. The research methods I chose are therefore related to the problems that I intend to solve. In the introductory chapter, “The concept of predictive processing”, I discuss the nature of PP as well as its main assumptions and theses. I also highlight the key concepts and distinctions for this research framework. Many authors argue that PP is a contemporary version of Kantianism and is exposed to objections similar to those made against the approach of Immanuel Kant. I discuss this thesis and show that it is only in a very general sense that the PP framework is neo-Kantian. Here we are not dealing with transcendental deduction nor with the application of transcendental arguments. I argue that PP is based on reverse engineering and abduction inferences. In the second part of this chapter, I respond to the objection formulated by Dan Zahavi, who directly accuses this research framework of anti-realistic consequences. I demonstrate that the position of internalism, present in the so-called conservative PP, does not imply anti-realism, and that, due to the explanatory role played in it by structural representations directed at real patterns, it is justified to claim that PP is realistic. In this way, I show that PP is a non-trivial research framework, having its subject, specific methods and its own epistemic status. Finally, I discuss positions classified as the socalled radical PP. In the chapter “Predictive processing as a Bayesian explanatory model” I justify the thesis according to which PP offers Bayesian modeling. Many researchers claim that the brain is an implemented statistical probabilistic network that is an approximation of the Bayesian 7 rule. In practice, this means that all cognitive processes are to apply Bayes' rule and can be described in terms of probability distributions. Such a solution arouses objections among many researchers and is the subject of wide criticism. The purpose of this chapter is to justify the thesis that Bayesian PP is a non-trivial research framework. For this purpose, I argue that it explains certain phenomena not only at the computational level described by David Marr, but also at the level of algorithms and implementation. Later in this chapter I demonstrate that PP is normative modeling. Proponents of the use of Bayesian models in psychology or decision theory argue that they are normative because they allow the formulation of formal rules of action that show what needs to be done to make a given action optimal. Critics of this approach emphasize that such thinking about the normativity of Bayesian modeling is unjustified and that science should shift from prescriptive to descriptive positions. In a polemic with Shira Elqayam and Jonathan Evans (2011), I show that the division they propose into prescriptivism and Bayesian descriptivism is apparent, because, as I argue, there are two forms of prescriptivism, i.e. the weak and the strong. I argue that the weak version is epistemic and can lead to anti-realism, while the strong version is ontic and allows one to justify realism in relation to Bayesian models. I argue that a weak version of prescriptivism is valid for PP. It allows us to adopt anti-realism in relation to PP. In practice, this means that you can explain phenomena using Bayes' rule. This does not, however, imply that they are Bayesian in nature. However, the full justification of realism in relation to the Bayesian PP presupposes the adoption of strong prescriptivism. This position assumes that phenomena are explained by Bayesian rule because they are Bayesian as such. If they are Bayesian in nature, then they should be explained using Bayesian modeling. This thesis will be substantiated in the chapters “Normative functions and mechanisms in the context of predictive processing” and “Normative mechanisms and actions in predictive processing”. In the chapter “The Free Energy Principle in predictive processing”, I discuss the Free Energy Principle (hereinafter FEP) formulated by Karl Friston and some of its implications. According to this principle, all biological systems (defined in terms of Markov blankets) minimize the free energy of their internal states in order to maintain homeostasis. Some researchers believe that PP is a special case of applying this principle to cognition, and that predictive mechanisms are homeostatic mechanisms that minimize free energy. The discussion of FEP is important due to the fact that some authors consider it to be important for explanatory purposes and normative. If this is the case, then FEP turns out to be crucial in explaining normative predictive mechanisms and, in general, any normative biological mechanisms. To define the explanatory possibilities of this principle, I refer to the discussion of its supporters on the issue they define as the problem of continuity and discontinuity between life and mind. A critical analysis of this discussion and the additional arguments I have formulated have allowed me to revise the explanatory ambitions of FEP. I also reject the belief that this principle is necessary to explain the nature of predictive mechanisms. I argue that the principle formulated and defended by Friston is an important research heuristic for PP analysis. 8 In the chapter “Normative functions and mechanisms in predictive processing”, I start my analyzes by formulating an answer to the question about the normative nature of homeostatic mechanisms. I demonstrate that predictive mechanisms are not homeostatic. I defend the view that a full explanation of normative mechanisms presupposes an explanation of normative functions. I discuss the most important proposals for understanding the normativity of a function, both from a systemic and teleosemantic perspective. I conclude that the non-trivial concept of a function must meet two requirements which I define as explanatory and normative. I show that none of the theories I have invoked satisfactorily meets both of these requirements. Instead, I propose a model of normativity based on Bickhard's account, but supplemented by a mechanistic perspective. I argue that a function is normative when: (1) it allows one to explain the dysfunction of a given mechanism; (2) it contributes to the maintenance of the organism's stability by shaping and limiting possible relations, processes and behaviors of a given system; and when (3) (according to the representational and predictive functions) it enables explaining the attribution of logical values of certain representations / predictions. In such an approach, a mechanism is normative when it performs certain normative functions and when it is constitutive for a specific action or behavior, despite the fact that for some reason it cannot realize it either currently or in the long-term. Such an understanding of the normativity of mechanisms presupposes the acceptance of the epistemic hypothesis. I argue that this hypothesis is not cognitively satisfactory, and therefore the ontic hypothesis should be justified, which is directly related to adopting the position of ontic prescriptivism. For this reason, referring to the mechanistic theory of scientific explanations, I formulate an ontical interpretation of the concept of a normative mechanism. According to this approach, a mechanism or a function is normative when they perform such and such causal roles in explaining certain actions and behaviors. With regard to the normative properties of predictive mechanisms and functions, this means that they are the causes of specific actions an organism carries out in the environment. In this way, I justify the necessity of accepting the ontic hypothesis and rejecting the epistemic hypothesis. The fifth chapter, “Normative mechanisms and actions in predictive processing”, is devoted to the dark room problem and the related exploration-exploitation trade-off. A dark room is the state that an agent could be in if it minimized the sum of all potential prediction errors. I demonstrate that, in accordance with the basic assumption of PP about the need for continuous and long-term minimization of prediction errors, such a state should be desirable for the agent. Is it really so? Many authors believe it is not. I argue that the test of the value of PP is the possibility of a non-trivial solution of this problem, which can be reduced to the choice between active and uncertainty-increasing exploration and safe and easily predictable exploitation. I show that the solution proposed by PP supporters present in the literature does not enable a fully satisfactory explanation of this dilemma. Then I defend the position according to which the full explanation of the normative mechanisms, and, subsequently, the solution to the dilemma of exploration and exploitation, involves reference to the existence of constraints present in the environment. The constraints 9 include elements of the environment that make a given mechanism not only causal but also normative. They are therefore key to explaining the predictive mechanisms. They do not only play the role of the context in which the mechanism is implemented, but, above all, are its constitutive component. I argue that the full explanation of the role of constraints in normative predictive mechanisms presupposes the integration of individual models of specific cognitive phenomena, because only the mechanistic integration of PP with other models allows for a non-trivial explanation of the nature of normative predictive mechanisms that would have a strong explanatory value. The explanatory monism present in many approaches to PP makes it impossible to solve the problem of the dark room. Later in this chapter, I argue that the Bayesian PP is normative not because it enables the formulation of such and such rules of action, but because the predictive mechanisms themselves are normative. They are normative because they condition the choice of such and such actions by agents. In this way, I justify the hypothesis that normative mechanisms make it possible to explain the phenomenon of agent motivation, which is crucial for solving the dark room problem. In the last part of the chapter, I formulate the hypothesis of distributed normativity, which assumes that the normative nature of certain mechanisms, functions or objects is determined by the relations into which these mechanisms, functions or objects enter. This means that what is normative (in the primary sense) is the relational structure that constitutes the normativity of specific items included in it. I suggest that this hypothesis opens up many areas of research and makes it possible to rethink many problems. In the “Conclusion”, I summarize the results of my research and indicate further research perspectives. (shrink)

I defend counterfactual decision theory, which says that you should evaluate an action in terms of which outcomes would likely obtain were you to perform it. Counterfactual decision theory has traditionally been subsumed under causal decision theory as a particular formulation of the latter. This is a mistake. Counterfactual decision theory is importantly different from, and superior to, causal decision theory, properly so called. Causation and counterfactuals come apart in three (...) kinds of cases. In cases of overdetermination, an action can cause a good outcome without the latter counterfactually depending on the former. In cases of constitution, an action can constitute a good outcome rather than causing it. And in cases of determinism, either the laws or the past counterfactually depend on your action, even though your action cannot cause the laws or the past to be different. In each of these cases, it is counterfactual decision theory which gives the right verdict, and for the right reasons. (shrink)

A de minimis risk is defined as a risk that is so small that it may be legitimately ignored when making a decision. While ignoring small risks is common in our day-to-day decision making, attempts to introduce the notion of a de minimis risk into the framework of decision theory have run up against a series of well-known difficulties. In this paper, I will develop an enriched decision theoretic framework that is capable of overcoming two (...) major obstacles to the modelling of de minimis risk. The key move is to introduce, into decision theory, a non-probabilistic conception of risk known as normic risk. (shrink)

The dispute in philosophical decision theory between causalists and evidentialists remains unsettled. Many are attracted to the causal view’s endorsement of a species of dominance reasoning, and to the intuitive verdicts it gets on a range of cases with the structure of the infamous Newcomb’s Problem. But it also faces a rising wave of purported counterexamples and theoretical challenges. In this paper I will describe a novel decision theory which saves what is appealing about the causal (...) view while avoiding its most worrying objections, and which promises to generalize to solve a set of related problems in other normative domains. (shrink)

Orthodox decision theory gives no advice to agents who hold two goods to be incommensurate in value because such agents will have incomplete preferences. According to standard treatments, rationality requires complete preferences, so such agents are irrational. Experience shows, however, that incomplete preferences are ubiquitous in ordinary life. In this paper, we aim to do two things: (1) show that there is a good case for revising decision theory so as to allow it to apply non-vacuously (...) to agents with incomplete preferences, and (2) to identify one substantive criterion that any such non-standard decision theory must obey. Our criterion, Competitiveness, is a weaker version of a dominance principle. Despite its modesty, Competitiveness is incompatible with prospectism, a recently developed decision theory for agents with incomplete preferences. We spend the final part of the paper showing why Competitiveness should be retained, and prospectism rejected. (shrink)

Decision theory has at its core a set of mathematical theorems that connect rational preferences to functions with certain structural properties. The components of these theorems, as well as their bearing on questions surrounding rationality, can be interpreted in a variety of ways. Philosophy’s current interest in decision theory represents a convergence of two very different lines of thought, one concerned with the question of how one ought to act, and the other concerned with the question (...) of what action consists in and what it reveals about the actor’s mental states. As a result, the theory has come to have two different uses in philosophy, which we might call the normative use and the interpretive use. It also has a related use that is largely within the domain of psychology, the descriptive use. This essay examines the historical development of decision theory and its uses; the relationship between the norm of decision theory and the notion of rationality; and the interdependence of the uses of decision theory. (shrink)

The classic formulation of causal decision theory (CDT) appeals to counterfactuals. It says that you should aim to choose an option that would have a good outcome, were you to choose it. However, this version of CDT faces trouble if the laws of nature are deterministic. After all, the standard theory of counterfactuals says that, if the laws are deterministic, then if anything—including the choice you make—were different in the present, either the laws would be violated or (...) the distant past would be changed. And as several authors have shown, it's easy to transform this upshot of the standard theory of counterfactuals into full-blown counterexamples to CDT. In response to these counterexamples, I argue here that the problem lies, not so much with CDT's guiding idea—that it's the expected causal consequences of your actions that matter for rational decision-making—but with the fact that the classic formulation of CDT doesn't pay sufficient attention to the context-sensitivity of counterfactuals. I develop a contextualist version of CDT which better accounts for this context-sensitivity. And I show that my theory avoids the problems faced by the classic formulation of CDT in determinstic worlds. (shrink)

The role of causation and counterfactuals in causal decision theory is vexed and disputed. Recently, Brian Hedden (2023) argues that we should abandon causal decision theory in favour of an alternative: counterfactual decision theory. I argue that, pace Hedden, counterfactual decision theory is not a competitor to, but rather a version of, causal decision theory – the most popular version by far. I provide textual evidence that the founding fathers of (...) causal decision theory (Stalnaker, Gibbard, Harper, Lewis, Skyrms, Sobel, and Joyce) all endorse counterfactual decision theories. I additionally discuss why these theories came to be called ‘causal’, rather than ‘counterfactual’. And I argue that, properly understood, causal decision theory escapes Hedden's objections. (shrink)

The problem of the man who met death in Damascus appeared in the infancy of the theory of rational choice known as causal decision theory. A straightforward, unadorned version of causal decision theory is presented here and applied, along with Brian Skyrms’ deliberation dynamics, to Death in Damascus and similar problems. Decision instability is a fascinating topic, but not a source of difficulty for causal decision theory. Andy Egan’s purported counterexample to causal (...) decision theory, Murder Lesion, is considered; a simple response shows how Murder Lesion and similar examples fail to be counterexamples, and clarifies the use of the unadorned theory in problems of decision instability. I compare unadorned causal decision theory to previous treatments by Frank Arntzenius and by Jim Joyce, and recommend a well-founded heuristic that all three accounts can endorse. Whatever course deliberation takes, causal decision theory is consistently a good guide to rational action. (shrink)

In this paper I investigate an alternative to imprecise probabilism. Imprecise probabilism is a popular revision of orthodox Bayesianism: while the orthodox Bayesian claims that a rational agent’s belief-state can be represented by a single credence function, the imprecise probabilist claims instead that a rational agent’s belief-state can be represented by a set of such functions. The alternative that I put forward in this paper is to claim that the expression ‘credence’ is vague, and then apply the theory (...) of supervaluationism to sentences containing this expression. This gives us a viable alternative to imprecise probabilism, and I end by comparing the two accounts. I show that supervaluationism has a simpler way of handling sentences relating the belief-states of two different people, or of the same person at two different times; that both accounts may have the resources to develop plausible decision theories; and finally that the supervaluationist can accommodate higher-order vagueness in a way that is not available to the imprecise probabilist. (shrink)

Evidential Decision Theory is flawed, but its flaws are not fully understood. David Lewis (1981) famously charged that EDT recommends an irrational policy of managing the news and “commends the ostrich as rational”. Lewis was right, but the case he appealed to—Newcomb’s Problem—does not demonstrate his conclusion. Indeed, decision theories other than EDT, such as Committal Decision Theory and Functional Decision Theory, agree with EDT's verdicts in Newcomb’s Problem, but their flaws, whatever they (...) may be, do not stem from any ostrich-like recommendations. We offer a new case which shows that EDT mismanages the news, thus vindicating Lewis’s original charge. We argue that this case reveals a flaw in the “Why ain’cha rich?” defense of EDT. We argue further that this case is an advance on extant putative counterexamples to EDT. (shrink)