Abstract

Any decision is made in some way or another. Which way? (Have I worked out enough alternatives to choose from? Which decision rule to apply?) That is a higher-order decision problem, to be dealt with in some way or other. Which way? That is an even higher-order decision problem. There seems to be a regress of decision problems toward higher and higher orders. But in daily life we stop moving to higher-order decision problems—stop the regress—at some finite point. The regress problem of deciding how to decide is the problem of explaining what would make it rational to stop the regress. I will give a new solution in the present paper. The result suggests a new way of looking at standard Bayesian theory and the more recent theory of adaptive rationality.