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It is not the case that Real decision environments involve genuine Knightian uncertainty where the state space cannot be fully specified, leaving Savage's axioms without grounding.
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Reasons For
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1.
Savage's framework applies to the agent's *subjective* model, not objective reality; agents always work with incomplete information regardless of true state space.
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2.
Knightian uncertainty and probabilistic decision-making aren't mutually exclusive—agents can assign credences to unknown possibilities without full specification.
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3.
Empirically, people make coherent decisions under deep uncertainty using satisficing heuristics; Savage's axioms describe ideals, not requirements for rational choice.
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Reasons Against
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Reason against
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1.
Historical surprise events (2008 crisis, COVID-19) demonstrate decision-makers couldn't enumerate relevant states beforehand, invalidating completeness.
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2.
Savage's axioms require agents to assign probabilities to all conceivable outcomes, but genuine unknowns resist probabilistic quantification entirely.
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3.
Real agents face 'unknown unknowns'—threats outside their epistemic model—making state space closure impossible rather than merely difficult.
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