The Logic of Risk

LOR9: Probability does not exist, or the subjectivist approach


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We introduce the subjectivist perspective on probability, featuring thinkers like Bruno de Finetti, Frank Ramsey, and Leonard Savage, who argue that probability is not an objective entity but rather something we invent to manage uncertainty arising from our limited knowledge.
De Finetti’s “betting” approach interprets probability as the price one would pay for a chance to win a fixed payoff, showing how different beliefs produce different numerical values.
From Laplace’s demon to everyday life, the notion of chance emerges because our knowledge is partial, compelling us to create probability and risk rather than discover them as objective realities. 
Are you ready to take the (subjective) risk?

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The Logic of RiskBy Pasquale Cirillo

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