- #596
Stephen Tashi
Science Advisor
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Ken G said:No, I'm saying that she has to pay X every time she takes a bet that is wrong. That's just how betting works.
This is the crucial point-- that's all credence means.
Your'e entitled to make-up you own definition of "credence". I'm talking about the definition that has been cited several times in this thread:
https://plato.stanford.edu/entries/imprecise-probabilities/
This boils down to the following analysis:
Your degree of belief in E is p iff p units of utility is the price at which you would buy or sell a bet that pays 1 unit of utility if E, 0 if not E.
If the experimenter phrases the question as "What is your credence that it will rain tomorrow" and the consequence of SP's answer is that she will receive $1 if the coin landed heads and lose twice what she offered for the bet if it lands tails then SB's answer should be 1/3. This is the best strategy. That answer is not her credence for the event "it will rain tomorrow". To get her credence for rain tomorrow, she is supposed to buy the the bet "you get $1 if it rains tomorrow". Her credence for rain tomorrow is not measured by the price she would pay for the bet "You get $1 if it rains tomorrow and lose twice what you paid for the bet if it doesn't".