This note is a generalization and improved interpretation of the main result of Karni and Schmeidler. A decision-maker is supposed to possess a preference relation on acts and another preference relation on state-prize lotteries, both of which are assumed to satisfy the von Neumann–Morgenstern axioms. In addition, the two preference relations restricted to a state of nature are assumed to agree. We show that these axioms are necessary and sufficient for the existence of subjective expected utility over acts with (...) state-dependent utility functions and a subjective probability measure. This subjective probability measure is unique when conditioned on the set of states of nature in which not all the prizes are equally desirable. (shrink)

This paper (first published under the same title in Journal of Mathematical Economics, 29, 1998, p. 331-361) is a sequel to "Consistent Bayesian Aggregation", Journal of Economic Theory, 66, 1995, p. 313-351, by the same author. Both papers examine mathematically whether the the following assumptions are compatible: the individuals and the group both form their preferences according to Subjective Expected Utility (SEU) theory, and the preferences of the group satisfy the Pareto principle with respect to those of the individuals. While (...) the 1995 paper explored these assumptions in the axiomatic context of Savage's (1954-1972) SEU theory, the present paper explores them in the context of Anscombe and Aumann's (1963) alternative SEU theory. We first show that the problematic assumptions become compatible when the Anscombe-Aumann utility functions are state-dependent and no subjective probabilities are elicited. Then we show that the problematic assumptions become incompatible when the Anscombe-Aumann utility functions are state-dependent, like before, but subjective probabilities are elicited using a relevant technical scheme. This last result reinstates the impossibilities proved by the 1995 paper, and thus shows them to be robust with respect to the choice of the SEU axiomatic framework. The technical scheme used for the elicitation of subjective probabilities is that of Karni, Schmeidler and Vind (1983). (shrink)

Experimental studies investigating the contribution of conscious intention to the generation of a sense of agency for one’s own actions tend to rely upon a narrow definition of intention. Often it is operationalized as the conscious sensation of wanting to move right before movement. Existing results and discussion are therefore missing crucial aspects of intentions, namely intention as the conscious sensation of wanting to move in advance of the movement. In the present experiment we used an intentional binding paradigm, in (...) which we distinguished between immediate intention, as usually investigated, and longer standing intention. The results showed that the binding effect was significantly enhanced for distal intentions compared to proximal intentions, indicating that the former leads to stronger sense of agency. Our finding provides empirical support for a crucial distinction between at least two types of intention when addressing the efficacy of conscious intentions. (shrink)

To better understand how to solve large-scale social dilemmas such as common-pool resource management, this paper provides a interdisciplinary critical analysis of scholarship to reveal the vicious cycle we are currently mired in. It proposes that current approaches to promote pro-environmental behaviour will be limited in their efficacy without a preliminary change in the level of trust among individuals and the systems that purport to support them. It then advances a new focus on large-scale trust building, suggesting paths for future (...) research and a new direction for successful outcomes. (shrink)

Gilboa and Schmeidler provide a paradigm for modelling decision making under uncertainty. Unlike the classical theory of expected utility maximization, case-based decision theory does not assume that decision makers know the possible 'states of the world' or the outcomes, let alone the decision matrix attaching outcomes to act-state pairs. Case-based decision theory suggests that people make decisions by analogies to past cases: they tend to choose acts that performed well in the past in similar situations, and to avoid acts (...) that performed poorly. It is an alternative to expected utility theory when both states of the world and probabilities are neither given in the problem nor can be easily constructed. The authors describe the general theory and its relationship to planning, repeated choice problems, inductive inference, and learning; they highlight its mathematical and philosophical foundations and compare it with expected utility theory as well as with rule-based systems. (shrink)

Acts are functions from states of nature into finite-support distributions over a set of ‘deterministic outcomes’. We characterize preference relations over acts which have a numerical representation by the functional J(f)=min>∫u∘ f dP¦PϵC where f is an act, u is a von Neumann-Morgenstern utility over outcomes, and C is a closed and convex set of finitely additive probability measures on the states of nature. In addition to the usual assumptions on the preference relation as transitivity, completeness, continuity and monotonicity, we (...) assume uncertainty aversion and certainty-independence. The last condition is a new one and is a weakening of the classical independence axiom: It requires that an act f is preferred to an act g if and only if the mixture of f and any constant act h is preferred to the same mixture of g and h. If non-degeneracy of the preference relation is also assumed, the convex set of priors C is uniquely determined. Finally, a concept of independence in case of a non-unique prior is introduced. (shrink)

This note argues that, under some circumstances, it is more rational not to behave in accordance with a Bayesian prior than to do so. The starting point is that in the absence of information, choosing a prior is arbitrary. If the prior is to have meaningful implications, it is more rational to admit that one does not have sufficient information to generate a prior than to pretend that one does. This suggests a view of rationality that requires a compromise between (...) internal coherence and justification, similarly to compromises that appear in moral dilemmas. Finally, it is argued that Savage's axioms are more compelling when applied to a naturally given state space than to an analytically constructed one; in the latter case, it may be more rational to violate the axioms than to be Bayesian. (shrink)

A recent update to the Geneva Declaration’s ‘Physician Pledge’ involves the ethical requirement of physicians to share medical knowledge for the benefit of patients and healthcare. With the spread of COVID-19, pockets exist in every country with different viral expressions. In the Chareidi religious community, for example, rates of COVID-19 transmission and dissemination are above average compared with other communities within the same countries. While viral spread in densely populated communities is common during pandemics, several reasons have been suggested to (...) explain the blatant flouting of public health regulations. It is easy to fault the Chareidi population for their proliferation of COVID-19, partly due to their avoidance of social media and internet aversion. However, the question remains: who is to blame for their community crisis? The ethical argument suggests that from a public health perspective, the physician needs to reach out and share medical knowledge with the community. The public’s best interests are critical in a pandemic and should supersede any considerations of cultural differences. By all indications, therefore, the physician has an ethical obligation to promote population healthcare and share medical knowledge based on ethical concepts of beneficence, non-maleficence, utilitarian ethics as well as social, procedural and distributive justice. This includes the ethical duty to reduce health disparities and convey the message that individual responsibility for health has repercussions within the context of broader social accountability. Creative channels are clearly demanded for this ethical challenge, including measured medical paternalism with appropriate cultural sensitivity in physician community outreach. (shrink)

A decision maker has to choose one of several random variables whose distributions are not known. As a Bayesian, she behaves as if she knew the distributions. In this paper we suggest an axiomatic derivation of these (subjective) distributions, which is more economical than the derivations by de Finetti or Savage. Whereas the latter derive the whole joint distribution of all the available random variables, our approach derives only the marginal distributions. Correspondingly, the preference questionnaire needed in our case is (...) less smaller. (shrink)

We suggest to define objective probabilities by similarity-weighted empirical frequencies, where more similar cases get a higher weight in the computation of frequencies. This formula is justified intuitively and axiomatically, but raises the question, which similarity function should be used? We propose to estimate the similarity function from the data, and thus obtain objective probabilities. We compare this definition to others, and attempt to delineate the scope of situations in which objective probabilities can be used.

Excerpt from The Community of the Future Page part 3 the right TO earn. 455 section 1 the development IN economic life and law Introduction 459 A. The development IN urban industries and the influence OF the law 463 Chapter 20. The dissolution of the old industrial organisations, the craft guilds 464 Unrestricted economic freedom of trade 464 I. England and North America 468 II. 496 Chapter 21. The Formations of the New Organisations of Industry and their Struggle for Legal (...) Recognition 504 1. England 509 II. The other [countries 515 Chapter 22. The Struggle for Power of the Organisations. The Period of Boycotting 517 I. Boycott-persecution 525 1. Penal Law 530 2. Civil Law 530 531 B. Other Countries II. The Trust Problem and the Law of the Great Industrial Countries 538 1. England 538 2. United States 540 3. France and: Germany 545 B. About the Publisher Forgotten Books publishes hundreds of thousands of rare and classic books. Find more at www.forgottenbooks.com This book is a reproduction of an important historical work. Forgotten Books uses state-of-the-art technology to digitally reconstruct the work, preserving the original format whilst repairing imperfections present in the aged copy. In rare cases, an imperfection in the original, such as a blemish or missing page, may be replicated in our edition. We do, however, repair the vast majority of imperfections successfully; any imperfections that remain are intentionally left to preserve the state of such historical works. (shrink)

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. (shrink)

We propose a model of an agent’s probability and utility that is a compromise between Savage (The foundations of statistics, Wiley, 1954) and Jeffrey (The Logic of Decision, McGraw Hill, 1965). In Savage’s model the probability–utility pair is associated with preferences over acts which are assignments of consequences to states. The probability is defined on the state space, and the utility function on consequences. Jeffrey’s model has no consequences, and both probability and utility are defined on the same set of (...) propositions. The probability–utility pair is associated with a desirability relation on propositions. Like Savage we assume a set of consequences and a state space. However, we assume that states are comprehensive, that is, each state describes a consequence, as in Aumann (Econometrica 55:1–18, 1987). Like Jeffrey, we assume that the agent has a preference relation, which we call desirability, over events, which by definition involves uncertainty about consequences. For a given probability and utility of consequences, the desirability relation is presented by conditional expected utility, given an event. We axiomatically characterize desirability relations that are represented by a probability–utility pair. We characterize the family of all the probability–utility pairs that represent a given desirability relation. (shrink)

Do axiomatic derivations advance positive economics? If economists are interested in predicting how people behave, without a pretense to change individual decision making, how can they benefit from representation theorems, which are no more than equivalence results? We address these questions. We propose several ways in which representation results can be useful and discuss their implications for axiomatic decision theory.

In the presence of incomplete risk attitudes, choices between noncomparable risky prospects are random. A random choice model advanced by Karni, 2021) includes the hypothesis that choices among noncomparable risky prospects are prompted by signals drawn from personal distributions. This paper introduces a scheme designed to elicit subjects’ assessments of their personal likelihoods of choices among noncomparable risky prospects and describes experiments designed to test the aforementioned hypothesis.

This volume reconsiders the relation between visibility and transcendence. The focus is on the contributions to this issue from the theological tradition in protestant Europe between the 16th and the 21st Centuries. A thematically broad field is covered embracing a plurality of methods drawn from theology, philosophy, and the theory of art. In five sub-themes the volueme deals with modes of appearing or hiding of phenomena, the fundamental understand and use of language, with the theological anthropology, the theological discourses behind (...) the religious uses of the different artistic media, and the idea of "vicarious representation"--Back cover. (shrink)

Traumatic brain injury (TBI) is a major cause of death and disability in Western society, and often results in functional and neuropsychological abnormalities. Memory impairment is one of the most significant cognitive implications after TBI. In the current study we investigated procedural memory acquisition by observational training in TBI patients. It was previously found that while practicing a new motor skill, patients engage in all three phases of skill learning–fast acquisition, between-session consolidation, and long-term retention, though their pattern of learning (...) is atypical compared to healthy participants. A different set of studies showed that training by observing a motor task, generally prompted effective acquisition and consolidation of procedural knowledge in healthy participants. The aim of our study was to (i) evaluate the potential benefit of action observation in TBI patients. (ii) Examine the possibility of general improvement in performance between the first (24 h post-training) and second (2 weeks post-training) stage of the study. (iii) Investigate the link between patients’ ability to benefit from observational learning (viaperformance gains–speed and accuracy) and common measures of injury (such as severity of injury, functional and cognitive measures).Materials and methodsPatients hospitalized after moderate to severe TBI, were trained by observation for the finger opposition sequence (FOS) motor task. They were then tested for the observation-trained sequence (A) and a similar control sequence (B), at two different time-points (24 h post-training and 2 weeks later).Results revealed(i) a significant difference in performance between the trained (A) and untrained (B) sequences, in favor of the trained sequence. (ii) An increase in performance for both sequences A and B toward the second (retention) session. (iii) The advantage for sequence A was stable and preserved also in the second session. (iv) Participants with lower moderate Functional Independence Measure (FIM) scores gained more from observational-procedural learning, compared with patients with higher functional abilities.ConclusionOverall, these findings support the notion that TBI patients may achieve procedural memory consolidation and retention through observational learning. Moreover, different functional traits may predict the outcomes of observational training in different patients. These findings may have significant practical implications in the future, regarding skill acquisition methods in TBI patients. (shrink)

This paper presents a procedure designed to aid physicians and patients in the process of making medical decisions, and illustrates its implementation to aid pregnant women, who decided to undergo prenatal diagnostic test choose a physician to administer it. The procedure is based on a medical decision-making model of Karni (J Risk Uncertain 39: 1–16, 2009). This model accommodates the possibility that the decision maker’s risk attitudes may vary with her state of health and incorporates other costs, such as pain (...) and inconvenience, associated with alternative treatments. The medical decision problem was chosen for its relative simplicity and the transparency it affords. (shrink)

The progressive multistage stabilization of memory (consolidation) relies on post-acquisition neural reorganization. We hypothesize that two processes subserve procedural memory consolidation and are reflected in delayed post-acquisition performance gains: (1) synaptic consolidation, which is classical Hebbian, and (2) in some tasks, concurrently or consequently, “system consolidation,” which might in some skills be sleep-dependent. Behavioral interference may affect either type of consolidation.

Published as a tribute to the memory of Elisha Pazner, this book contains a collection of essays providing a comprehensive view of the design and evaluation of economic mechanisms, written and edited by the major contributors to the field. Amongst the topics included are bargaining theory and the economics of competitive bidding. The surveys are preceded by 'A Perspective', by Leo Hurwicz which contains a systematic account of the development of the literature on mechanism design, and this provides a context (...) for both the surveys and the six published papers authored or co-authored by Elisha Pazner that complete the book and demonstrate Pazner's interest in and contribution to the study of economic mechanisms. Leonid Hurwitcz is the Nobel Prize Winner 2007 for The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, along with colleagues Eric Maskin and Roger Myerson, for his work on the effectiveness of markets. (shrink)

Medicine has undergone substantial changes in the way medical dilemmas are being dealt with. Here we explore the attitude of Israeli physicians to two debatable dilemmas: disclosing the full truth to patients...

Street Level Bureaucrats’ (SLBs) contribution to social inequality was proposed to be best assessed by combining three analytical approaches: Discretion, Positioning, and Reproduction. Such a triple analytical framework may be required for understanding SLBs’ responses to Economic Abuse (EA) in Israel where formal law has not addressed EA while the prevalent welfare orientation denies the material resources required in responding to EA. Applying the triple framework in analyzing fifty-three interviews conducted with Israeli SLBs operating in state welfare organizations reveals the (...) extent to which each analytical component is open for SLBs’ moral entrepreneurship, generating a sense of appropriate professional treatment. It develops a critical discussion of the conditions under which applying the triple framework of discretion, positioning, and reproduction is conducive. (shrink)

The interpretation of economic theories varies along several dimensions. First, models can describe reality, illustrate a recommended state of affairs, or analyze the structure and implications of a theory. Second, theories can be used for prediction or for explanation. Third, theories can relate to reality in a rule-based or case-based manner. Fourth, theories can be statements about economic reality or about the act of economic reasoning itself. Fifth, theories can offer predictions or merely critique reasoning. We argue that theories are (...) often open to multiple interpretations which can shift depending on the context in which the theory is applied, the surrounding economic literature, and the argument made by the interpreter. (shrink)

The interpretation of economic theories varies along several dimensions. First, models can describe reality, illustrate a recommended state of affairs, or analyze the structure and implications of a theory. Second, theories can be used for prediction or for explanation. Third, theories can relate to reality in a rule-based or case-based manner. Fourth, theories can be statements about economic reality or about the act of economic reasoning itself. Fifth, theories can offer predictions or merely critique reasoning. We argue that theories are (...) often open to multiple interpretations which can shift depending on the context in which the theory is applied, the surrounding economic literature, and the argument made by the interpreter. (shrink)