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What are we asking about when we
      ask about the future?


   A socio-epistemological perspective
         on probability questions
       Gloria Origgi – InstitutNicod
On ne saitjamaisexactementquand les gens
          basculent d’un cotéoul’autre de la vie,
               c’estunesomme de petitsriens qui
      vousentraînent, calamités imperceptibles,
                           désastresindistincts.

Michaël Ferrier, Tokyo, Petits Portraits de l’Aube,
                                Arléa, Paris, 2010
Social Epistemology
    The study of the social, cognitive, institutional
    and cultural constraints on the production,
    distribution and stabilization of knowledge
    (valid, justified beliefs).
•   Trust
•   Reputation
•   Indicators
•   Predictive “style of thought”
Since the introduction of writing, at the end of
the 4th millennium BCE in Mesopotamia, our
cultural timeline is organized on a vertical
arrow:

          past -> present ->future
A science of predictions?
• Probability calculus

• Pascal-Fermat correspondence in 1654:
• Division of the stakes, that is how to divide a
  prize pot in a two-players game in which the
  two players have won each a certain number
  of rounds and the game is interrupted before
  the end.
A Future-Oriented Solution:
• Pascal and Fermat famously solved the
  problem by insisting not on the history of the
  previous rounds, but on the probabilities of
  winning future rounds were the game not
  interrupted.
• The Beginning of Modern History of
  Probability: it introduced the concept of
  expectation, that is, of average payoffs in a
  long run of similar gambles.
The emergence of probabilistic
              reasoning:

A different interpretation of the present:
  not:
causallydetermined by the past
  but:
counter-factually determined by the future
Hacking: Probabilistic Reasoning as a
       New “Style of Thought”

The difference from causal reasoning is that:

  Instead of focusing on how a certain event
  came to be, probabilistic reasoning focuses on
  what could have happened instead
Probabilities and Causes
Probability teaches us to deal with states of
affairs we do not know either because of
ignorance or because they did not take place.

Counterfactual events do not have causal
power, because they don’t take place. They
are causally inert.
Probability is not just about the
                 Future:
• The unknown is everywhere, in all time
  dimensions
• Taming the unknown means learning to care
  about things we do not see, we cannot control
  and therefore, we cannot determine their
  causal powers on events
Present concerns with the Unknown:
• The existence of God (Pascal’s wage)
• The quick diagnosis of a patient’s illness in a
  hospital’s emergency room (very present
  problem!)
• The conditional probability of someone having
  a certain condition (being a genius, being rich,
  being infected by a disease) given the
  evidence
Past concerns with the Unknown
• The probability that my mother was an
  academic given that I am an academic
• The probability of being born with of a certain
  distribution of genetic material in my DNA
  given my present physical dispositions
• The probability of an historical event (the big-
  bang, the extinction of dinosaurs) given the
  present state of the world…
Different interpretations of probability:

1. A quasi-logical concept, which is meant to measure
   objective evidential support relations. For example,
   “in light of the relevant seismological and geological
   data, it is probable that California will experience a
   major earthquake this decade”.
2. An agent's degree of confidence, a graded belief. For
   example, “I am not sure that it will rain in Canberra
   this week, but it probably will.”
3. An objective concept that applies to various systems
   in the world, independently of what anyone thinks.
   For example, “A particular radium atom will decay
   probably decay within 10,000 years”.
Subjective vs. Objective interpretations
             of Probability
  Hacking: “On the one side it is statistical,
  concerning itself with stochastic laws of chance
  processes. On the other side, it is
  epistemological, dedicated to assessing
  reasonable degrees of belief in propositions quite
  devoid of statistical background”..
  Condorcet: facilité, (stochastical) motif de croire
  (epistemological)
Carnap: Probability 1 – Probability 2
Keynes: Subjective Probability - Popper
  Propensity
Notorious Biases
Base-rate Fallacy
  A cab was involved in a hit-run accident at night. Two
  cab companies, the Green and the Blue, operate in the
  city. You are given the following data:
• 85% of cabs in the city are Green and 15% are Blue
• A witness identified the cab as Blue. The court tested
  the reliability of the witness and concluded that the
  witness correctly identified each one of the two colors
  80% of times and failed 20% of time
• What is the probability that the cab involved in the
  accident was Blue rather than Green?
Solution
• In absence of the witness, the probability that of
  the guilty cab being Blue is 15%, which is the base
  rate of that outcome.
• If the distribution of cabs were 50/50, the base
  rate would be uninformative and the only
  relevant information would be the witness’
  testimony.
• Bayes’s rule: combine the two: 41%.
• Most people ignore the base rate and go with the
  witness (80%)
“Causal” Variant
• The two companies operate the same number of
  cabs, but Green cabs are involved in 85% of
  accidents
• A witness identified the cab as Blue. The court
  tested the reliability of the witness and
  concluded that the witness correctly identified
  each one of the two colors 80% of times and
  failed 20% of time
• What is the probability that the cab involved in
  the accident was Blue rather than Green?
What Do People Say?

• The give a considerable weight to the base-
  rate and ignore the witness. The car must
  have been Green…
• Causal readingsuppresses statistical one
Gambler’s Fallacy


You are playing at the Casino de Monaco and
  red has come out 6 times. What is more
  probable that, in the next game: red or black?
The Gambler’s Fallacy is a Causal
               Fallacy
• The gambler thinks that black is more
  probable because red came out 6 times.
• A tendency to think that past events have a
  causal power on future events.
• Statistics says that “in the long run”, in a series
  of trials, the average value comes closer to the
  expected value (law of large numbers)
• But it insists on the independence of trials.
Causal readings and the Future
• What do we want to predict?
  – Rare, extreme events
  – Black Swans


• The problem with the unbiased readings is
  that they allow you to predict only a uniform
  future.
• You will never be able to say “I thought so!”
Predictions, probabilities and utilities
• Estimate the probability of an event x
• Estimate the utility u(x) of the event x, that is,
  what is the best course of action I can choose
  given the risks (decision theory). I can
  calculate if it is rational, for example, to bet on
  a horse, given the probability of its winning
  the race.
• Estimate the impact of x, that is,
  independently of my course of action.
We can predict impact of x better than
          x and act upon it
• The probability of a tsunami in Naples is 0.2
• The impact of a tsunami in Naples is
  independent of its probability: it will cause
  1000 casualties and more than one hundred
  million dollars of physical damages.
• Acting upon impact can be easier than acting
  upon probabilities of an event.
• Impact of rare events.
Conclusions


Some biases in reading the future are perhaps
cognitively bad, but epistemologically
necessary.

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Predictions

  • 1. What are we asking about when we ask about the future? A socio-epistemological perspective on probability questions Gloria Origgi – InstitutNicod
  • 2. On ne saitjamaisexactementquand les gens basculent d’un cotéoul’autre de la vie, c’estunesomme de petitsriens qui vousentraînent, calamités imperceptibles, désastresindistincts. Michaël Ferrier, Tokyo, Petits Portraits de l’Aube, Arléa, Paris, 2010
  • 3. Social Epistemology The study of the social, cognitive, institutional and cultural constraints on the production, distribution and stabilization of knowledge (valid, justified beliefs). • Trust • Reputation • Indicators • Predictive “style of thought”
  • 4. Since the introduction of writing, at the end of the 4th millennium BCE in Mesopotamia, our cultural timeline is organized on a vertical arrow: past -> present ->future
  • 5. A science of predictions? • Probability calculus • Pascal-Fermat correspondence in 1654: • Division of the stakes, that is how to divide a prize pot in a two-players game in which the two players have won each a certain number of rounds and the game is interrupted before the end.
  • 6. A Future-Oriented Solution: • Pascal and Fermat famously solved the problem by insisting not on the history of the previous rounds, but on the probabilities of winning future rounds were the game not interrupted. • The Beginning of Modern History of Probability: it introduced the concept of expectation, that is, of average payoffs in a long run of similar gambles.
  • 7. The emergence of probabilistic reasoning: A different interpretation of the present: not: causallydetermined by the past but: counter-factually determined by the future
  • 8. Hacking: Probabilistic Reasoning as a New “Style of Thought” The difference from causal reasoning is that: Instead of focusing on how a certain event came to be, probabilistic reasoning focuses on what could have happened instead
  • 9. Probabilities and Causes Probability teaches us to deal with states of affairs we do not know either because of ignorance or because they did not take place. Counterfactual events do not have causal power, because they don’t take place. They are causally inert.
  • 10. Probability is not just about the Future: • The unknown is everywhere, in all time dimensions • Taming the unknown means learning to care about things we do not see, we cannot control and therefore, we cannot determine their causal powers on events
  • 11. Present concerns with the Unknown: • The existence of God (Pascal’s wage) • The quick diagnosis of a patient’s illness in a hospital’s emergency room (very present problem!) • The conditional probability of someone having a certain condition (being a genius, being rich, being infected by a disease) given the evidence
  • 12. Past concerns with the Unknown • The probability that my mother was an academic given that I am an academic • The probability of being born with of a certain distribution of genetic material in my DNA given my present physical dispositions • The probability of an historical event (the big- bang, the extinction of dinosaurs) given the present state of the world…
  • 13. Different interpretations of probability: 1. A quasi-logical concept, which is meant to measure objective evidential support relations. For example, “in light of the relevant seismological and geological data, it is probable that California will experience a major earthquake this decade”. 2. An agent's degree of confidence, a graded belief. For example, “I am not sure that it will rain in Canberra this week, but it probably will.” 3. An objective concept that applies to various systems in the world, independently of what anyone thinks. For example, “A particular radium atom will decay probably decay within 10,000 years”.
  • 14. Subjective vs. Objective interpretations of Probability Hacking: “On the one side it is statistical, concerning itself with stochastic laws of chance processes. On the other side, it is epistemological, dedicated to assessing reasonable degrees of belief in propositions quite devoid of statistical background”.. Condorcet: facilité, (stochastical) motif de croire (epistemological) Carnap: Probability 1 – Probability 2 Keynes: Subjective Probability - Popper Propensity
  • 16. Base-rate Fallacy A cab was involved in a hit-run accident at night. Two cab companies, the Green and the Blue, operate in the city. You are given the following data: • 85% of cabs in the city are Green and 15% are Blue • A witness identified the cab as Blue. The court tested the reliability of the witness and concluded that the witness correctly identified each one of the two colors 80% of times and failed 20% of time • What is the probability that the cab involved in the accident was Blue rather than Green?
  • 17. Solution • In absence of the witness, the probability that of the guilty cab being Blue is 15%, which is the base rate of that outcome. • If the distribution of cabs were 50/50, the base rate would be uninformative and the only relevant information would be the witness’ testimony. • Bayes’s rule: combine the two: 41%. • Most people ignore the base rate and go with the witness (80%)
  • 18. “Causal” Variant • The two companies operate the same number of cabs, but Green cabs are involved in 85% of accidents • A witness identified the cab as Blue. The court tested the reliability of the witness and concluded that the witness correctly identified each one of the two colors 80% of times and failed 20% of time • What is the probability that the cab involved in the accident was Blue rather than Green?
  • 19. What Do People Say? • The give a considerable weight to the base- rate and ignore the witness. The car must have been Green… • Causal readingsuppresses statistical one
  • 20. Gambler’s Fallacy You are playing at the Casino de Monaco and red has come out 6 times. What is more probable that, in the next game: red or black?
  • 21. The Gambler’s Fallacy is a Causal Fallacy • The gambler thinks that black is more probable because red came out 6 times. • A tendency to think that past events have a causal power on future events. • Statistics says that “in the long run”, in a series of trials, the average value comes closer to the expected value (law of large numbers) • But it insists on the independence of trials.
  • 22. Causal readings and the Future • What do we want to predict? – Rare, extreme events – Black Swans • The problem with the unbiased readings is that they allow you to predict only a uniform future. • You will never be able to say “I thought so!”
  • 23. Predictions, probabilities and utilities • Estimate the probability of an event x • Estimate the utility u(x) of the event x, that is, what is the best course of action I can choose given the risks (decision theory). I can calculate if it is rational, for example, to bet on a horse, given the probability of its winning the race. • Estimate the impact of x, that is, independently of my course of action.
  • 24. We can predict impact of x better than x and act upon it • The probability of a tsunami in Naples is 0.2 • The impact of a tsunami in Naples is independent of its probability: it will cause 1000 casualties and more than one hundred million dollars of physical damages. • Acting upon impact can be easier than acting upon probabilities of an event. • Impact of rare events.
  • 25. Conclusions Some biases in reading the future are perhaps cognitively bad, but epistemologically necessary.