Ep. 107 - Bob Murphy: Probability, Economics, and Human Action

Economist Bob Murphy shares his insight into Ludwig von Mises’s ideas on Probability from the mid 20th century treatise Human Action. They work to square this with Max’s conception of probability in his own experience as a machine learning engineer. Topics include:- The differences between subjective and objective probability (and case vs class probability in Human Action)- Use of probability in decision making- The controversial meaning of subjective probability- Whether insurance companies are gambling- Contrasting visions of Bayesian Inference from the 20th to the 21st centuries.This is a fascinating discussion that involves the clashing of different schools of thought, which is by no means definitive and will be expanded upon in later episodes!localmaxradio.com/107 Get full access to The Local Maximum at localmaximum.substack.com/subscribe