In this paper I combine the dynamic epistemic logic ofGerbrandy (1999) with the probabilistic logic of Fagin and Halpern (1994). The resultis a new probabilistic dynamic epistemic logic, a logic for reasoning aboutprobability, information, and information change that takes higher orderinformation into account. Probabilistic epistemic models are defined, and away to build them for applications is given. Semantics and a proof systemis presented and a number of examples are discussed, including the MontyHall Dilemma.

After explaining the well-known two-envelope paradox by indicating the fallacy involved, we consider the two-envelope problem of evaluating the factual information provided to us in the form of the value contained by the envelope chosen first. We try to provide a synthesis of contributions from economy, psychology, logic, probability theory (in the form of Bayesian statistics), mathematical statistics (in the form of a decision-theoretic approach) and game theory. We conclude that the two-envelope problem does not allow a satisfactory solution. An (...) interpretation is made for statistical science at large. (shrink)