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Theory and Decision 73, 1 (2012) NC
The predictive role of counterfactuals
Alfredo Di Tillio 1, Itzhak Gilboa 2, 3, Larry Samuelson 4
(07/2012)

We suggest a model that describes how counterfactuals are constructed and justified. The model can describe how counterfactual beliefs are updated given the unfolding of actual history. It also allows us to examine the use of counterfactuals in prediction, and to show that a logically omniscient reasoner gains nothing from using counterfactuals for prediction.
1 :  Bocconi University
Bocconi University
2 :  Groupement de Recherche et d'Etudes en Gestion à HEC (GREGH)
GROUPE HEC – CNRS : UMR2959
3 :  Tel-Aviv University
Tel-Aviv University
4 :  Department of Economics
Yale University
Sciences de l'Homme et Société/Economie et finances
induction – counterfactuals – prediction
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