Submitted:
29 October 2025
Posted:
30 October 2025
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Abstract
Keywords:
Introduction
“A businessman contemplates buying a certain piece of property. He considers the outcome of the next presidential election relevant to the attractiveness of the purchase. So, to clarify the matter to himself, he asks whether he would buy if he knew that the Democratic candidate were going to win, and decides that he would. Similarly, he considers whether he would buy if he knew that the Republican candidate were going to win, and again finds that he would do so. Seeing that he would buy in either event, he decides that he should buy, even though he does not know which event obtains …[E]xcept possibly for the assumption of simple ordering, I know of no other …principle governing decisions that finds such ready acceptance.”
“One of the basic axioms of the rational theory of decision under uncertainty is Savage's (1954) sure-thing principle (STP) It states that if prospect x is preferred to y knowing that Event A occurred, and if x is preferred to y knowing that A did not occur, then x should be preferred to y even when it is not known whether A occurred.”
“Dominance Principle: If there is a partition of states of the world such that relative to it, action A weakly dominates action B, then A should be performed rather than B.Action A weakly dominates action B for person P iff, for each state of the world, P either prefers the consequence of A to the consequence of B, or is indifferent between the two consequences, and for some state of the world, P prefers the consequence of A to the consequence of B.”
“Quasi-magical thinking, we believe, underlies several phenomena related to self-deception and the illusion of control. Quattrone and Tversky (1984), for example, noted that Calvinists act as if their behavior will determine whether they will go to heaven or to hell, despite their belief in divine predetermination, which entails that their fate has been determined prior to their birth. ”
“Calvinists would perhaps do fewer good deeds if they knew that they had already been assigned to heaven, or to hell, than while their fate remains a mystery.”
“It is told of Niels Bohr that, when asked by a journalist about a horseshoe (purported to bring good luck) hanging over his door, he explained that he of course does not believe in such nonsense, but heard that it helped even if one did not believe.”
Conclusions
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