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.

We give two social aggregation theorems under conditions of risk, one for constant population cases, the other an extension to variable populations. Intra and interpersonal welfare comparisons are encoded in a single ‘individual preorder’. The theorems give axioms that uniquely determine a social preorder in terms of this individual preorder. The social preorders described by these theorems have features that may be considered characteristic of Harsanyi-style utilitarianism, such as indifference to ex ante and ex post equality. However, the theorems are (...) also consistent with the rejection of all of the expected utility axioms, completeness, continuity, and independence, at both the individual and social levels. In that sense, expected utility is inessential to Harsanyi-style utilitarianism. In fact, the variable population theorem imposes only a mild constraint on the individual preorder, while the constant population theorem imposes no constraint at all. We then derive further results under the assumption of our basic axioms. First, the individual preorder satisfies the main expected utility axiom of strong independence if and only if the social preorder has a vector-valued expected total utility representation, covering Harsanyi’s utilitarian theorem as a special case. Second, stronger utilitarian-friendly assumptions, like Pareto or strong separability, are essentially equivalent to strong independence. Third, if the individual preorder satisfies a ‘local expected utility’ condition popular in non-expected utility theory, then the social preorder has a ‘local expected total utility’ representation. Fourth, a wide range of non-expected utility theories nevertheless lead to social preorders of outcomes that have been seen as canonically egalitarian, such as rank-dependent social preorders. Although our aggregation theorems are stated under conditions of risk, they are valid in more general frameworks for representing uncertainty or ambiguity. (shrink)

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 principle that rational agents should maximize expected utility or choiceworthiness is intuitively plausible in many ordinary cases of decision-making under uncertainty. But it is less plausible in cases of extreme, low-probability risk (like Pascal's Mugging), and intolerably paradoxical in cases like the St. Petersburg and Pasadena games. In this paper I show that, under certain conditions, stochastic dominance reasoning can capture most of the plausible implications of expectational reasoning while avoiding most of its pitfalls. Specifically, given sufficient (...) background uncertainty about the choiceworthiness of one's options, many expectation-maximizing gambles that do not stochastically dominate their alternatives "in a vacuum" become stochastically dominant in virtue of that background uncertainty. But, even under these conditions, stochastic dominance will not require agents to accept options whose expectational superiority depends on sufficiently small probabilities of extreme payoffs. The sort of background uncertainty on which these results depend looks unavoidable for any agent who measures the choiceworthiness of her options in part by the total amount of value in the resulting world. At least for such agents, then, stochastic dominance offers a plausible general principle of choice under uncertainty that can explain more of the apparent rational constraints on such choices than has previously been recognized. (shrink)

Systems of logico-probabilistic (LP) reasoning characterize inference from conditional assertions interpreted as expressing high conditional probabilities. In the present article, we investigate four prominent LP systems (namely, systems O, P, Z, and QC) by means of computer simulations. The results reported here extend our previous work in this area, and evaluate the four systems in terms of the expected utility of the dispositions to act that derive from the conclusions that the systems license. In addition to (...) conforming to the dominant paradigm for assessing the rationality of actions and decisions, our present evaluation complements our previous work, since our previous evaluation may have been too severe in its assessment of inferences to false and uninformative conclusions. In the end, our new results provide additional support for the conclusion that (of the four systems considered) inference by system Z offers the best balance of error avoidance and inferential power. Our new results also suggest that improved performance could be achieved by a modest strengthening of system Z. (shrink)

The paper summarizes expected utility theory, both in its original von Neumann-Morgenstern version and its later developments, and discusses the normative claims to rationality made by this theory.

In Richard Bradley’s book, Decision Theory with a Human Face, we have selected two themes for discussion. The first is the Bolker-Jeffrey theory of decision, which the book uses throughout as a tool to reorganize the whole field of decision theory, and in particular to evaluate the extent to which expected utility theories may be normatively too demanding. The second theme is the redefinition strategy that can be used to defend EU theories against the Allais and Ellsberg paradoxes, (...) a strategy that the book by and large endorses, and even develops in an original way concerning the Ellsberg paradox. We argue that the BJ theory is too specific to fulfil Bradley’s foundational project and that the redefinition strategy fails in both the Allais and Ellsberg cases. Although we share Bradley’s conclusion that EU theories do not state universal rationality requirements, we reach it not by a comparison with BJ theory, but by a comparison with the non-EU theories that the paradoxes have heuristically suggested. (shrink)

Consider a subjective expected utility preference relation. It is usually held that the representations which this relation admits differ only in one respect, namely, the possible scales for the measurement of utility. In this paper, I discuss the fact that there are, metaphorically speaking, two additional dimensions along which infinitely many more admissible representations can be found. The first additional dimension is that of state-dependence. The second—and, in this context, much lesser-known—additional dimension is that of act-dependence. The (...) simplest implication of their usually neglected existence is that the standard axiomatizations of subjective expected utility fail to provide the measurement of subjective probability with satisfactory behavioral foundations. (shrink)

The Dutch Book Argument for Probabilism assumes Ramsey's Thesis (RT), which purports to determine the prices an agent is rationally required to pay for a bet. Recently, a new objection to Ramsey's Thesis has emerged (Hedden 2013, Wronski & Godziszewski 2017, Wronski 2018)--I call this the Expected Utility Objection. According to this objection, it is Maximise Subjective Expected Utility (MSEU) that determines the prices an agent is required to pay for a bet, and this often disagrees (...) with Ramsey's Thesis. I suggest two responses to Hedden's objection. First, we might be permissive: agents are permitted to pay any price that is required or permitted by RT, and they are permitted to pay any price that is required or permitted by MSEU. This allows us to give a revised version of the Dutch Book Argument for Probabilism, which I call the Permissive Dutch Book Argument. Second, I suggest that even the proponent of the Expected Utility Objection should admit that RT gives the correct answer in certain very limited cases, and I show that, together with MSEU, this very restricted version of RT gives a new pragmatic argument for Probabilism, which I call the Bookless Pragmatic Argument. (shrink)

Some early phase clinical studies of candidate HIV cure and remission interventions appear to have adverse medical risk–benefit ratios for participants. Why, then, do people participate? And is it ethically permissible to allow them to participate? Recent work in decision theory sheds light on both of these questions, by casting doubt on the idea that rational individuals prefer choices that maximise expected utility, and therefore by casting doubt on the idea that researchers have an ethical obligation not to (...) enrol participants in studies with high risk–benefit ratios. This work supports the view that researchers should instead defer to the considered preferences of the participants themselves. This essay briefly explains this recent work, and then explores its application to these two questions in more detail. (shrink)

In this paper, I criticize Ethan Jerzak’s view that ‘want’ has only one sense, the mixed expected utility sense. First, I show that his appeals to ‘really’-locutions fail to explain away the counterintuitive predictions of his view. Second, I present a class of cases, which I call “principled indifference” cases, that pose difficulties for any expected utility lexical entry for ‘want’. I argue that in order to account for these cases, one needs to concede that ‘want’ (...) has a sense, according to which wanting is a matter of subjectively preferring p-alternatives to not-p-alternatives. Finally, I introduce some considerations for and against the view that ‘want’ also has another sense, which is roughly synonymous with ‘need’. (shrink)

In this article we explore an argumentative pattern that provides a normative justification for expected utility functions grounded on empirical evidence, showing how it worked in three different episodes of their development. The argument claims that we should prudentially maximize our expected utility since this is the criterion effectively applied by those who are considered wisest in making risky choices (be it gamblers or businessmen). Yet, to justify the adoption of this rule, it should be proven (...) that this is empirically true: i.e. that a given function allows us to predict the choices of that particular class of agents. We show how expected utility functions were introduced and contested in accordance with this pattern in the 18th century and how it recurred in the 1950s when Allais made his case against the neo-Bernoullians. (shrink)

This monographic chapter explains how expected utility (EU) theory arose in von Neumann and Morgenstern, how it was called into question by Allais and others, and how it gave way to non-EU theories, at least among the specialized quarters of decion theory. I organize the narrative around the idea that the successive theoretical moves amounted to resolving Duhem-Quine underdetermination problems, so they can be assessed in terms of the philosophical recommendations made to overcome these problems. I actually follow (...) Duhem's recommendation, which was essentially to rely on the passing of time to make many experiments and arguments available, and evebntually strike a balance between competing theories on the basis of this improved knowledge. Although Duhem's solution seems disappointingly vague, relying as it does on "bon sens" to bring an end to the temporal process, I do not think there is any better one in the philosophical literature, and I apply it here for what it is worth. In this perspective, EU theorists were justified in resisting the first attempts at refuting their theory, including Allais's in the 50s, but they would have lacked "bon sens" in not acknowledging their defeat in the 80s, after the long process of pros and cons had sufficiently matured. This primary Duhemian theme is actually combined with a secondary theme - normativity. I suggest that EU theory was normative at its very beginning and has remained so all along, and I express dissatisfaction with the orthodox view that it could be treated as a straightforward descriptive theory for purposes of prediction and scientific test. This view is usually accompanied with a faulty historical reconstruction, according to which EU theorists initially formulated the VNM axioms descriptively and retreated to a normative construal once they fell threatened by empirical refutation. From my historical study, things did not evolve in this way, and the theory was both proposed and rebutted on the basis of normative arguments already in the 1950s. The ensuing, major problem was to make choice experiments compatible with this inherently normative feature of theory. Compability was obtained in some experiments, but implicitly and somewhat confusingly, for instance by excluding overtly incoherent subjects or by creating strong incentives for the subjects to reflect on the questions and provide answers they would be able to defend. I also claim that Allais had an intuition of how to combine testability and normativity, unlike most later experimenters, and that it would have been more fruitful to work from his intuition than to make choice experiments of the naively empirical style that flourished after him. In sum, it can be said that the underdetermination process accompanying EUT was resolved in a Duhemian way, but this was not without major inefficiencies. To embody explicit rationality considerations into experimental schemes right from the beginning would have limited the scope of empirical research, avoided wasting resources to get only minor findings, and speeded up the Duhemian process of groping towards a choice among competing theories. (shrink)

The Sure-Thing Principle famously appears in Savage’s axiomatization of Subjective Expected Utility. Yet Savage introduces it only as an informal, overarching dominance condition motivating his separability postulate P2 and his state-independence postulate P3. Once these axioms are introduced, by and large, he does not discuss the principle any more. In this note, we pick up the analysis of the Sure-Thing Principle where Savage left it. In particular, we show that each of P2 and P3 is equivalent to a (...) dominance condition; that they strengthen in different directions a common, basic dominance axiom; and that they can be explicitly combined in a unified dominance condition that is a candidate formal statement for the Sure-Thing Principle. Based on elementary proofs, our results shed light on some of the most fundamental properties of rational choice under uncertainty. In particular they imply, as corollaries, potential simplifications for Savage’s and the Anscombe- Aumann axiomatizations of Subjective Expected Utility. Most surprisingly perhaps, they reveal that in Savage’s axiomatization, P3 can be weakened to a natural strengthening of so-called Obvious Dominance. (shrink)

This chapter concerns the nature of our obligations as individuals when it comes to our emissions-producing activities and climate change. The first half of the chapter argues that the popular ‘expected utility’ approach to this question faces a problematic dilemma: either it gives skeptical verdicts, saying that there are no such obligations, or it yields implausibly strong verdicts. The second half of the chapter diagnoses the problem. It is argued that the dilemma arises from a very general feature (...) of the view, and thus is shared by other views as well. The chapter then discusses what an account of our individual obligations needs to look like if it is to avoid the dilemma. Finally, the discussion is extended beyond climate change to other collective impact contexts. (shrink)

As stochastic independence is essential to the mathematical development of probability theory, it seems that any foundational work on probability should be able to account for this property. Bayesian decision theory appears to be wanting in this respect. Savage’s postulates on preferences under uncertainty entail a subjective expected utility representation, and this asserts only the existence and uniqueness of a subjective probability measure, regardless of its properties. What is missing is a preference condition corresponding to stochastic independence. To (...) fill this significant gap, the article axiomatizes Bayesian decision theory afresh and proves several representation theorems in this novel framework. (shrink)

We investigate risk attitudes when the underlying domain of payoffs is finite and the payoffs are, in general, not numerical. In such cases, the traditional notions of absolute risk attitudes, that are designed for convex domains of numerical payoffs, are not applicable. We introduce comparative notions of weak and strong risk attitudes that remain applicable. We examine how they are characterized within the rank-dependent utility model, thus including expected utility as a special case. In particular, we characterize (...) strong comparative risk aversion under rank-dependent utility. This is our main result. From this and other findings, we draw two novel conclusions. First, under expected utility, weak and strong comparative risk aversion are characterized by the same condition over finite domains. By contrast, such is not the case under non-expected utility. Second, under expected utility, weak comparative risk aversion is characterized by the same condition when the utility functions have finite range and when they have convex range. By contrast, such is not the case under non-expected utility. Thus, considering comparative risk aversion over finite domains leads to a better understanding of the divide between expected and non-expected utility, more generally, the structural properties of the main models of decision-making under risk. (shrink)

The paper re-expresses arguments against the normative validity of expected utility theory in Robin Pope (1983, 1991a, 1991b, 1985, 1995, 2000, 2001, 2005, 2006, 2007). These concern the neglect of the evolving stages of knowledge ahead (stages of what the future will bring). Such evolution is fundamental to an experience of risk, yet not consistently incorporated even in axiomatised temporal versions of expected utility. Its neglect entails a disregard of emotional and financial effects on well-being before (...) a particular risk is resolved. These arguments are complemented with an analysis of the essential uniqueness property in the context of temporal and atemporal expected utility theory and a proof of the absence of a limit property natural in an axiomatised approach to temporal expected utility theory. Problems of the time structure of risk are investigated in a simple temporal framework restricted to a subclass of temporal lotteries in the sense of David Kreps and Evan Porteus (1978). This subclass is narrow but wide enough to discuss basic issues. It will be shown that there are serious objections against the modification of expected utility theory axiomatised by Kreps and Porteus (1978, 1979). By contrast the umbrella theory proffered by Pope that she has now termed SKAT, the Stages of Knowledge Ahead Theory, offers an epistemically consistent framework within which to construct particular models to deal with particular decision situations. A model by Caplin and Leahy (2001) will also be discussed and contrasted with the modelling within SKAT (Pope, Leopold and Leitner 2007). (shrink)

This paper aims to address the question of how one ought to choose when one is uncertain about what outcomes will result from one’s choices, but when one can nevertheless assign probabilities to the different possible outcomes. These choices are commonly referred to as choices (or decisions) under risk. I assume in this paper that one ought to make instrumentally rational choices—more precisely, one ought to adopt suitable means to one’s morally permissible ends. Expected utility (EU) theory is (...) generally accepted as a normative theory of rational choice under risk, or, more specifically, as a theory of instrumental rationality. According to EU theory, when faced with a decision under risk, one ought to rank one’s options (from least to most choiceworthy) according to their EU and one ought to choose whichever option carries the greatest EU (or one of them in the event that several alternatives are tied). The EU of an option is a probability-weighted sum of each of its possible utilities. In this paper, I argue that EU theory is not the correct theory of instrumental rationality. In its place, I argue for a new theory of instrumental rationality, namely expected comparative utility (ECU) theory. I first show that for any choice option, a, and for any state of the world, G, the measure of the choiceworthiness of a in G is the comparative utility of a in G—that is, the difference in utility, in G, between a and whichever alternative to a carries the greatest utility in G. On the basis of this principle, I then argue, roughly speaking, that for any agent, S, faced with any decision under risk, S ought to rank her options (in terms of how choiceworthy they are) according to their ECU and S ought to choose whichever option carries the greatest ECU (or one of them in the event that several alternatives are tied). For any option, a, a’s ECU is a probability‐weighted sum of a’s comparative utilities across the various possible states of the world. In this paper, I show that in some commonplace decisions under risk, ECU theory delivers different verdicts from those of EU theory. (shrink)

We provide conditions under which an incomplete strongly independent preorder on a convex set X can be represented by a set of mixture preserving real-valued functions. We allow X to be infi nite dimensional. The main continuity condition we focus on is mixture continuity. This is sufficient for such a representation provided X has countable dimension or satisfi es a condition that we call Polarization.

A strongly independent preorder on a possibly in finite dimensional convex set that satisfi es two of the following conditions must satisfy the third: (i) the Archimedean continuity condition; (ii) mixture continuity; and (iii) comparability under the preorder is an equivalence relation. In addition, if the preorder is nontrivial (has nonempty asymmetric part) and satisfi es two of the following conditions, it must satisfy the third: (i') a modest strengthening of the Archimedean condition; (ii') mixture continuity; and (iii') completeness. Applications (...) to decision making under conditions of risk and uncertainty are provided. (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 investigates how environmental structure, given the innate properties of a population, affects the degree to which this population can adapt to the environment. The model we explore involves simple agents in a 2-d world which can sense a local food distribution and, as specified by their genomes, move to a new location and ingest the food there. Adaptation in this model consists of improving the genomic sensorimotor mapping so as to maximally exploit the environmental resources. We vary environmental (...) structure to see its specific effect on adaptive success. In our investigation, two properties of environmental structure, conditioned by the sensorimotor capacities of the agents, have emerged as significant factors in determining adaptive success: (1) the information content of the environment which quantifies the diversity of conditions sensed, and (2) the expected utility for optimal action. These correspond to the syntactic and pragmatic aspects of environmental information, respectively. We find that the ratio of expected utility to information content predicts adaptive success measured by population gain and information content alone predicts the fraction of ideal utility achieved. These quantitative methods and specific conclusions should aid in understanding the effects of environmental structure on evolutionary adaptation in a wide range of evolving systems, both artificial and natural. (shrink)

This paper is about two requirements on wish reports whose interaction motivates a novel semantics for these ascriptions. The first requirement concerns the ambiguities that arise when determiner phrases, such as definite descriptions, interact with ‘wish’. More specifically, several theorists have recently argued that attitude ascriptions featuring counterfactual attitude verbs license interpretations on which the determiner phrase is interpreted relative to the subject’s beliefs. The second requirement involves the fact that desire reports in general require decision-theoretic notions for their analysis. (...) The current study is motivated by the fact that no existing account captures both of these aspects of wishing. I develop a semantics for wish reports that makes available belief-relative readings but also allows decision-theoretic notions to play a role in shaping the truth conditions of these ascriptions. The general idea is that we can analyze wishing in terms of a two-dimensional notion of expected utility. (shrink)

Grey zone attacks tend to paralyze response for two reasons. First, they present us with choice scenarios of inherently dilemmatic structure, e.g., Prisoners’ Dilemmas and games of chicken, complicated by difficult conditions of choice, such as choice under risk or amid vagueness. Second, they exploit our uncertainty about how much we do or should care about the things under attack¬—each attack is small in effect, but their effects accumulate: how should we decide whether to treat a given attack as something (...) meriting a serious response rather than a mere irritation to be ignored? This chapter brings standard decision theoretic tools to bear on the issues, tools such as the maximization of expected utility principle, and the precautionary principle. But it also develops three innovations. It shows that seeing it as possible to make choices not just of actions given our values, but also choices of values themselves, can extricate us from certain kinds of decision paralysis. It shows how we can rationally regard ourselves as having bright decision lines even when nothing in the circumstance of choice has these lines in its structure. And it shows how certain conflict escalation risks from the former two strategies can be managed by both parties seeing that cooperation can yield a sharable surplus of goods, and that cooperation can be rational upon a rationally defensible change in their values so that each comes to derive utility from the success of both parties. This yields cooperative solutions to what amount to Prisoners’ Dilemmas. The Cold War was prosecuted on the logic of strategic rationality and that part of game theory that is deterrence theory. We need a new logic from decision theorists for the games that constitute grey zone conflict. (shrink)

The desirability of what actually occurs is often influenced by what could have been. Preferences based on such value dependencies between actual and counterfactual outcomes generate a class of problems for orthodox decision theory, the best-known perhaps being the so-called Allais Paradox. In this paper we solve these problems by extending Richard Jeffrey's decision theory to counterfactual prospects, using a multidimensional possible-world semantics for conditionals, and showing that preferences that are sensitive to counterfactual considerations can still be desirability maximising. We (...) end the paper by investigating the conditions necessary and sufficient for a desirability function to be an expected utility. It turns out that the additional conditions imply highly implausible epistemic principles. (shrink)

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 as a 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 the rationality of choices as with the rationality 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 in letting 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)

Instability occurs when the very fact of choosing one particular possible option rather than another affects the expected values of those possible options. In decision theory: An act is stable iff given that it is actually performed, its expected utility is maximal. When there is no stable choice available, the resulting instability can seem to pose a dilemma of practical rationality. A structurally very similar kind of instability, which occurs in cases of anti-expertise, can likewise seem to (...) create dilemmas of epistemic rationality. One possible line of response to such cases of instability, suggested by both Jeffrey (1983) and Sorensen (1987), is to insist that a rational agent can simply refuse to accept that such instability applies to herself in the first place. According to this line of thought it can be rational for a subject to discount even very strong empirical evidence that the anti-expertise condition obtains. I present a new variety of anti-expertise condition where no particular empirical stage-setting is required, since the subject can deduce a priori that an anti-expertise condition obtains. This kind of anti-expertise case is therefore not amenable to the line of response that Jeffrey and Sorensen recommend. (shrink)

More philosophical effort is spent articulating evolutionary rationales for the development of belief-like capacities than for precursors of desires or preferences. Nobody, though, seriously expects naturally evolved minds to be disinterested epistemologists. We agree that world-representing states won’t pay their way without supporting capacities that prioritise from an organism’s available repertoire of activities in light of stored (and occurrent) information. Some concede that desire-like states would be one way of solving this problem. Taking preferences as my starting point instead of (...) belief-like states, I defend two conclusions. First, psychologically real preference states, which approximately token expected utilities, have a quite general evolutionary rationale. They are a solution to the problem of efficiently allocating capacities with incompatible uses. This argument is a version of the Environmental Complexity Thesis. Second, preferences can plausibly function and naturally evolve without belief-like states, even though the converse claim is incredible. Preferences, that is, can mediate between discriminations of occurrent states (‘internal’ or ‘external’) and the processes selecting activity without mediation by stored indicative representations. By tokening expected utilities of actions conditional on discriminated state, they can increase the rate at which the ‘right thing’ is done at appropriate times, and they can do this without the support of belief-like, world-representing states. Preferences, even incomplete and noisy sets of them, are a fuel for success that will tend to be favoured when environments are complex in ways that matter to an organism, and when the organisms have complex behavioural repertoires with heterogenous returns and costs. (shrink)

[A slightly revised version of this paper has been accepted by the BJPS] More attention has been devoted to providing evolutionary scenarios accounting for the development of beliefs, or belief-like states, than for desires or preferences. Here I articulate and defend an evolutionary rationale for the development of psychologically real preference states. Preferences token or represent the expected values of discriminated states, available actions, or action-state pairings. The argument is an application the ‘environmental complexity thesis’ found in Godfrey-Smith and (...) Sterelny, although my conclusions differ from Sterelny’s. I argue that tokening expected utilities can, under specified general conditions, be a powerful design solution to the problem of allocating the capacities of an agent in an efficient way. Preferences are for efficient action selection, and are a ‘fuel for success’ in the sense urged by Godfrey-Smith for true beliefs. They will tend to be favoured by selection when environments are complex in ways that matter to an organism, and when organisms have rich behavioural repertoires with heterogenous returns and costs. The rationale suggested here is conditional, especially on contingencies in what design options are available to selection and on trade-offs associated with the costs of generating and processing representations of value. The unqualified efficiency rationale for preferences suggests that organisms should represent expected utilities in a comprehensive and consistent way, but none of them do. In the final stages of the paper I consider some of the ways in which design trade-offs compromise the implementation of preferences in organisms that have them. (shrink)

The basic axioms or formal conditions of decision theory, especially the ordering condition put on preferences and the axioms underlying the expected utility formula, are subject to a number of counter-examples, some of which can be endowed with normative value and thus fall within the ambit of a philosophical reflection on practical rationality. Against such counter-examples, a defensive strategy has been developed which consists in redescribing the outcomes of the available options in such a way that the threatened (...) axioms or conditions continue to hold. We examine how this strategy performs in three major cases: Sen's counterexamples to the binariness property of preferences, the Allais paradox of EU theory under risk, and the Ellsberg paradox of EU theory under uncertainty. We find that the strategy typically proves to be lacking in several major respects, suffering from logical triviality, incompleteness, and theoretical insularity. To give the strategy more structure, philosophers have developed “principles of individuation”; but we observe that these do not address the aforementioned defects. Instead, we propose the method of checking whether the strategy can overcome its typical defects once it is given a proper theoretical expansion. We find that the strategy passes the test imperfectly in Sen's case and not at all in Allais's. In Ellsberg's case, however, it comes close to meeting our requirement. But even the analysis of this more promising application suggests that the strategy ought to address the decision problem as a whole, rather than just the outcomes, and that it should extend its revision process to the very statements it is meant to protect. Thus, by and large, the same cautionary tale against redescription practices runs through the analysis of all three cases. A more general lesson, simply put, is that there is no easy way out from the paradoxes of decision theory. (shrink)

Unlike other classical arguments for the existence of God, Pascal’s Wager provides a pragmatic rationale for theistic belief. Its most popular version says that it is rationally mandatory to choose a way of life that seeks to cultivate belief in God because this is the option of maximum expected utility. Despite its initial attractiveness, this long-standing argument has been subject to various criticisms by many philosophers. What is less discussed, however, is the rationality of this choice in situations (...) where the decision-makers are confronted with greater uncertainty. In this paper, I examine the imprecise version of Pascal’s Wager: those scenarios where an agent’s credence that God exists is imprecise or vague rather than precise. After introducing some technical background on imprecise probabilities, I apply five different principles for decision-making to two cases of state uncertainty. In the final part of the paper, I argue that it is not rationally permitted to include zero as the lower probability of God’s existence. Although the conditions for what makes an act uniquely optimal vary significantly across those principles, I also show how the option of wagering for God can defeat any mixed strategy under two distinct interpretations of salvation. (shrink)

Suppose that a decision-maker's aim, under certainty, is to maximise some continuous value, such as lifetime income or continuous social welfare. Can such a decision-maker rationally satisfy what has been called "continuity for easy cases" while at the same time satisfying what seems to be a widespread intuition against the full-blown continuity axiom of expected utility theory? In this note I argue that the answer is "no": given transitivity and a weak trade-off principle, continuity for easy cases violates (...) the anti-continuity intuition. I end the note by exploring an even weaker continuity condition that is consistent with the aforementioned intuition. (shrink)

Abstract The Preface Paradox, first introduced by David Makinson (1961), presents a plausible scenario where an agent is evidentially certain of each of a set of propositions without being evidentially certain of the conjunction of the set of propositions. Given reasonable assumptions about the nature of evidential certainty, this appears to be a straightforward contradiction. We solve the paradox by appeal to stake size sensitivity, which is the claim that evidential probability is sensitive to stake size. The argument is that (...) because the informational content in the conjunction is greater than the sum of the informational content of the conjuncts, the stake size in the conjunction is higher than the sum of the stake sizes in the conjuncts. We present a theory of evidential probability that identifies knowledge with value and allows for coherent stake sensitive beliefs. An agent’s beliefs are represented two dimensionally as a bid – ask spread, which gives a bid price and an ask price for bets at each stake size. The bid ask spread gets wider when there is less valuable evidence relative to the stake size, and narrower when there is more valuable evidence according to a simple formula. The bid-ask spread can represent the uncertainty in the first order probabilistic judgement. According to the theory it can be coherent to be evidentially certain at low stakes, but less than certain at high stakes, and therefore there is no contradiction in the Preface. The theory not only solves the paradox, but also gives a good model of decisions under risk that overcomes many of the problems associated with classic expected utility theory. (shrink)

How is the burden of proof to be distributed among individuals who are involved in resolving a particular issue? Under what conditions should the burden of proof be distributed unevenly? We distinguish attitudinal from dialectical burdens and argue that these questions should be answered differently, depending on which is in play. One has an attitudinal burden with respect to some proposition when one is required to possess sufficient evidence for it. One has a dialectical burden with respect to some proposition (...) when one is required to provide supporting arguments for it as part of a deliberative process. We show that the attitudinal burden with respect to certain propositions is unevenly distributed in some deliberative contexts, but in all of these contexts, establishing the degree of support for the proposition is merely a means to some other deliberative end, such as action guidance, or persuasion. By contrast, uneven distributions of the dialectical burden regularly further the aims of deliberation, even in contexts where the quest for truth is the sole deliberative aim, rather than merely a means to some different deliberative end. We argue that our distinction between these two burdens resolves puzzles about unevenness that have been raised in the literature. (shrink)

Suppose that it is rational to choose or intend a course of action if and only if the course of action maximizes some sort of expectation of some sort of value. What sort of value should this definition appeal to? According to an influential neo-Humean view, the answer is “Utility”, where utility is defined as a measure of subjective preference. According to a rival neo-Aristotelian view, the answer is “Choiceworthiness”, where choiceworthiness is an irreducibly normative notion of a (...) course of action that is good in a certain way. The neo-Humean view requires preferences to be measurable by means of a utility function. Various interpretations of what exactly a “preference” is are explored, to see if there is any interpretation that supports the claim that a rational agent’s “preferences” must satisfy the “axioms” that are necessary for them to be measurable in this way. It is argued that the only interpretation that supports the idea that the rational agent’s preferences must meet these axioms interprets “preferences” as a kind of value-judgment. But this turns out to be version of the neo-Aristotelian view, rather than the neo-Humean view. Rational intentions maximize expected choiceworthiness, not expected utility. (shrink)

Savage's framework of subjective preference among acts provides a paradigmatic derivation of rational subjective probabilities within a more general theory of rational decisions. The system is based on a set of possible states of the world, and on acts, which are functions that assign to each state a consequence€. The representation theorem states that the given preference between acts is determined by their expected utilities, based on uniquely determined probabilities (assigned to sets of states), and numeric utilities assigned to (...) consequences. Savage's derivation, however, is based on a highly problematic well-known assumption not included among his postulates: for any consequence of an act in some state, there is a "constant act" which has that consequence in all states. This ability to transfer consequences from state to state is, in many cases, miraculous -- including simple scenarios suggested by Savage as natural cases for applying his theory. We propose a simplification of the system, which yields the representation theorem without the constant act assumption. We need only postulates P1-P6. This is done at the cost of reducing the set of acts included in the setup. The reduction excludes certain theoretical infinitary scenarios, but includes the scenarios that should be handled by a system that models human decisions. (shrink)

While the contemporary philosophical literature is replete with discussion of the control or freedom required for moral responsibility, only more recently has substantial attention been devoted to the knowledge or awareness required, otherwise called the epistemic condition. This area of inquiry is rapidly expanding, as are the various positions within it. This chapter introduces two major positions: the reasonable expectation view and the quality of will view. The chapter then explores two dimensions of the epistemic condition that serve as fault (...) lines along which these two views diverge. The first dimension concerns different kinds of ignorance. The second concerns what agents can be directly blameworthy for. The chapter closes by sketching a novel approach that incorporates advantages of opposing positions on this topic. (shrink)

The value of knowledge can vary in that knowledge of important facts is more valuable than knowledge of trivialities. This variation in the value of knowledge is mirrored by a variation in evidential standards. Matters of greater importance require greater evidential support. But all knowledge, however trivial, needs to be evidentially certain. So on one hand we have a variable evidential standard that depends on the value of the knowledge, and on the other, we have the invariant standard of evidential (...) certainty. This paradox in the concept of knowledge runs deep in the history of philosophy. We approach this paradox by proposing a bet settlement theory of knowledge. Degrees of belief can be measured by the expected value of a bet divided by stake size, with the highest degree of belief being probability 1, or certainty. Evidence sufficient to settle the bet makes the expectation equal to the stake size and therefore has evidential probability 1. This gives us the invariant evidential certainty standard for knowledge. The value of knowledge relative to a bet is given by the stake size. We propose that evidential probability can vary with stake size, so that evidential certainty at low stakes does not entail evidential certainty at high stakes. This solves the paradox by allowing that certainty is necessary for knowledge at any stakes, but that the evidential standards for knowledge vary according to what is at stake. We give a Stake Size Variation Principle that calculates evidential probability from the value of evidence and the stakes. Stake size variant degrees of belief are probabilistically coherent and explain a greater range of preferences than orthodox expected utility theory, namely the Ellsberg and Allais preferences. The resulting theory of knowledge gives an empirically adequate, rationally grounded, unified account of evidence, value and probability. (shrink)

According to epistemic utility theory, epistemic rationality is teleological: epistemic norms are instrumental norms that have the aim of acquiring accuracy. What’s definitive of these norms is that they can be expected to lead to the acquisition of accuracy when followed. While there’s much to be said in favor of this approach, it turns out that it faces a couple of worrisome extensional problems involving the future. The first problem involves credences about the future, and the second problem (...) involves future credences. Examining prominent solutions to a different extensional problem for this approach reinforces the severity of the two problems involving the future. Reflecting on these problems reveals the source: the teleological assumption that epistemic rationality aims at acquiring accuracy. (shrink)

This paper examines how the concepts of utility, impartiality, and universality worked together to form the foundation of Adam Smith's jurisprudence. It argues that the theory of utility consistent with contemporary rational choice theory is insufficient to account for Smith's use of utility. Smith's jurisprudence relies on the impartial spectator's sympathetic judgment over whether third parties are injured, and not individuals' expected utility associated with individuals' expected gains from rendering judgments over innocence or guilt.

I consider difficult data involving the interaction of attitudes and conditionals, specifically non-doxastic attitude expressions like 'regret'. I first show that felicitous attitude conditionals in "ignorance contexts", where the relevant person doesn't know the antecedent is true, give rise to a number of difficult problems given widely held assumptions in semantics. I then argue that, even so, we should expect these conditionals to be true and reasonable to utter in ignorance contexts, given certain other kinds of attitude construction that tend (...) to involve free relatives like `whatever'. I then use that observation to explain many of the more puzzling aspects of these conditionals, and to show that we should treat felicitous doxastic attitude conditionals differently from felicitous non-doxastic ones. I leave explaining felicitous doxastic attitude conditionals for future work, but offer constraints on a satisfying explanation of them. (shrink)

Climate change increases the frequency and intensity of certain kinds of natural hazard events in alpine areas. This interdisciplinary study addresses the hypothetical possibility of relocating the residents of three alpine areas in Austria: the Sölk valleys, the Johnsbach valley, and the St. Lorenzen/Schwarzenbach valleys. Our particular focus is on these residents’ expectations about such relocations. We find that (1) many residents expect that in the next decades the state will provide them with a level of natural hazards protection, aid, (...) and relief that allows them to continue to live in these valleys; (2) this expectation receives some legal protection but only when it is associated with fundamental rights; and (3) the expectation is morally significant, i.e., it ought to be considered in assessing the moral rightness or justness of relocation policies. These results suggest legal changes and likely extend to many other (Austrian) alpine areas as well. (shrink)

Discovering high-level causal relations from low-level data is an important and challenging problem that comes up frequently in the natural and social sciences. In a series of papers, Chalupka etal. (2015, 2016a, 2016b, 2017) develop a procedure forcausal feature learning (CFL) in an effortto automate this task. We argue that CFL does not recommend coarsening in cases where pragmatic considerations rule in favor of it, and recommends coarsening in cases where pragmatic considerations rule against it. We propose a new technique, (...) pragmatic causal feature learning (PCFL), which extends the original CFL algorithm in useful and intuitive ways. We show that PCFL has the same attractive measure-theoretic properties as the original CFL algorithm. We compare the performance of both methods through theoretical analysis and experiments. (shrink)

This paper tries to reconstruct Ernst Cassirer's potential reception of the EPR argument, as exposed by Einstein in his letter to Cassirer of March 1937. It is shown that, in conformity with his transcendental epistemology taking the conditions of accessibility as constitutive of the quantum object, Cassirer would probably have rejected the argument. Indeed, Cassirer would probably not have subscribed to its separability/local causality presupposition (which goes against his interpretation of the quantum formalism as a self-suf!cient condition constitutive of the (...) quantum object, without any reliance on spatial intuition), nor to its completeness requirement (as his partial endorsement of Bohr's complementarity, and his rejection of the Kantian "idea of complete determination", illustrate). By rejecting both of its premises, Cassirer's philosophy of physics thus enables to escape the EPR dilemma, and exhibits what, in Kantian terms, might be called a "negative utility" with respect to physical science. A further investigation of the anti-reductionist utility of Cassirer's systematic philosophy with respect to physics and other "symbolic forms" is !nally suggested. (shrink)

The Lockean Thesis says that you must believe p iff you’re sufficiently confident of it. On some versions, the 'must' asserts a metaphysical connection; on others, it asserts a normative one. On some versions, 'sufficiently confident' refers to a fixed threshold of credence; on others, it varies with proposition and context. Claim: the Lockean Thesis follows from epistemic utility theory—the view that rational requirements are constrained by the norm to promote accuracy. Different versions of this theory generate different versions (...) of Lockeanism; moreover, a plausible version of epistemic utility theory meshes with natural language considerations, yielding a new Lockean picture that helps to model and explain the role of beliefs in inquiry and conversation. Your beliefs are your best guesses in response to the epistemic priorities of your context. Upshot: we have a new approach to the epistemology and semantics of belief. And it has teeth. It implies that the role of beliefs is fundamentally different than many have thought, and in fact supports a metaphysical reduction of belief to credence. (shrink)

The topic of this thesis is axiological uncertainty – the question of how you should evaluate your options if you are uncertain about which axiology is true. As an answer, I defend Expected Value Maximisation (EVM), the view that one option is better than another if and only if it has the greater expected value across axiologies. More precisely, I explore the axiomatic foundations of this view. I employ results from state-dependent utility theory, extend them in various (...) ways and interpret them accordingly, and thus provide axiomatisations of EVM as a theory of axiological uncertainty. (shrink)

Volume 26, Issue 4, December 2019, Page 380-384.

I argue that prioritarianism cannot be assessed in abstraction from an account of the measure of utility. Rather, the soundness of this view crucially depends on what counts as a greater, lesser, or equal increase in a person’s utility. In particular, prioritarianism cannot accommodate a normatively compelling measure of utility that is captured by the axioms of John von Neumann and Oskar Morgenstern’s expected utility theory. Nor can it accommodate a plausible and elegant generalization of (...) this theory that has been offered in response to challenges to von Neumann and Morgenstern. This is, I think, a theoretically interesting and unexpected source of difficulty for prioritarianism, which I explore in this article. (shrink)

Theories that use expected utility maximization to evaluate acts have difficulty handling cases with infinitely many utility contributions. In this paper I present and motivate a way of modifying such theories to deal with these cases, employing what I call “Direct Difference Taking”. This proposal has a number of desirable features: it’s natural and well-motivated, it satisfies natural dominance intuitions, and it yields plausible prescriptions in a wide range of cases. I then compare my account to the (...) most plausible alternative, a proposal offered by Arntzenius :31–58, 2014). I argue that while Arntzenius’s proposal has many attractive features, it runs into a number of problems which Direct Difference Taking avoids. (shrink)