17,983 research outputs found

    Rationality of Belief Or: Why Savage's axioms are neither necessary nor sufficient for rationality, Second Version

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    Economic theory reduces the concept of rationality to internal consistency. As far as beliefs are concerned, rationality is equated with having a prior belief over a “Grand State Space”, describing all possible sources of uncertainties. We argue that this notion is too weak in some senses and too strong in others. It is too weak because it does not distinguish between rational and irrational beliefs. Relatedly, the Bayesian approach, when applied to the Grand State Space, is inherently incapable of describing the formation of prior beliefs. On the other hand, this notion of rationality is too strong because there are many situations in which there is not sufficient information for an individual to generate a Bayesian prior. It follows that the Bayesian approach is neither sufficient not necessary for the rationality of beliefs.Decision making, Bayesian, Behavioral Economics

    Rationality of Belief Or: Why Savage's axioms are neither necessary nor sufficient for rationality, Second Version

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    Economic theory reduces the concept of rationality to internal consistency. The practice of economics, however, distinguishes between rational and irrational beliefs. There is therefore an interest in a theory of rational beliefs, and of the process by which beliefs are generated and justified. We argue that the Bayesian approach is unsatisfactory for this purpose, for several reasons. First, the Bayesian approach begins with a prior, and models only a very limited form of learning, namely, Bayesian updating. Thus, it is inherently incapable of describing the formation of prior beliefs. Second, there are many situations in which there is not sufficient information for an individual to generate a Bayesian prior. It follows that the Bayesian approach is neither sufficient not necessary for the rationality of beliefs.Decision making, Bayesian, Behavioral Economics

    On the Interpretation of Decision Theory

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    BDI reasoning with normative considerations

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    F. Meneguzzi thanks Fundaç ao de Amparo à Pesquisa do Estado do Rio Grande do Sul (FAPERGS, Brazil) for the financial support through the ACI program (Grant ref. 3541-2551/12-0) and the ARD program (Grant ref. 12/0808-5), as well as Conselho Nacional de Desenvolvimento Científico e Tecnológico (CNPq) through the Universal Call (Grant ref. 482156/2013-9) and PQ fellowship (Grant ref. 306864/2013-4). N. Oren and W.W. Vasconcelos acknowledge the support of the Engineering and Physical Sciences Research Council (EPSRC, UK) within the research project “Scrutable Autonomous Systems” (SAsSY11, Grant ref. EP/J012084/1).Peer reviewedPostprin
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