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davidmanheim's avatar

The key point here is that "not any kind of objective fact about the world" isn't a coherent category for deciding whether probability estimates will or will not converge. Your objection applies just as easily to "What was the total number of people who visited Canterbury, defined as entering the boundary between midnight and midnight, on July 7, 1832."

That's clearly an objective fact, it's just uncertain. And obviously actual humans will not converge on an answer, but Aumann agreement shows very clearly that rational Bayesians must do so.

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Stephen Diamond's avatar

Whether they "should" converge is not exactly relevant - if they don't in fact. (Why aren't British bettors bothered by the different odds on American prediction markets?)

But, yes, what I'm saying is a sort of challenge to Bayesianism. Probabiliy estimates only should converge if there is in fact a unique probability attached to the event in question. This is a condition that (I claim) is only approximated sometimes, when we say there is risk rather than when we call it uncertainty. (I am rejecting Bayesian probability when there is no coherent objective probability involved. (See "Epistemological implications of a reduction of theoretical implausibility to cognitive dissonance" - http://juridicalcoherence.b... )

An example. Let's say we have a prediction market on the result of the role of a die. Will "1" come up? However, no one is told, and no one can find out, how many sides the die has. To avoid problems, let's say the die toss is a simulation of randomness, and the die might have any number of sides, from 1 to a trillion.

We set up two distinct and separate prediction markets for this event. Would the two markets converge? No reason they should. (I'd guess that random events in the betting history would determine the end result.) With complete uncertainty there is no convergence. With large uncertainty there is little convergence.

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