Exceeding expectations: stochastic dominance as a general decision theory
Christian Tarsney (Global Priorities Institute, Oxford University)
GPI Working Paper No. 3-2020
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.
Other working papers
Longtermist political philosophy: An agenda for future research – Jacob Barrett (Global Priorities Institute, University of Oxford) and Andreas T. Schmidt (University of Groningen)
We set out longtermist political philosophy as a research field. First, we argue that the standard case for longtermism is more robust when applied to institutions than to individual action. This motivates “institutional longtermism”: when building or shaping institutions, positively affecting the value of the long-term future is a key moral priority. Second, we briefly distinguish approaches to pursuing longtermist institutional reform along two dimensions: such approaches may be more targeted or more broad, and more urgent or more patient.
How to resist the Fading Qualia Argument – Andreas Mogensen (Global Priorities Institute, University of Oxford)
The Fading Qualia Argument is perhaps the strongest argument supporting the view that in order for a system to be conscious, it does not need to be made of anything in particular, so long as its internal parts have the right causal relations to each other and to the system’s inputs and outputs. I show how the argument can be resisted given two key assumptions: that consciousness is associated with vagueness at its boundaries and that conscious neural activity has a particular kind of holistic structure. …
Doomsday rings twice – Andreas Mogensen (Global Priorities Institute, Oxford University)
This paper considers the argument according to which, because we should regard it as a priori very unlikely that we are among the most important people who will ever exist, we should increase our confidence that the human species will not persist beyond the current historical era, which seems to represent…