PDA

View Full Version : Do mistakes exist?


soon2bepro
05-07-2006, 12:23 PM
First, I want to clarify that this post is about decision errors/mistakes, and not about conclusion errors/mistakes.

The difference is that a conclusion is understanding, it's about finding or figuring, and ultimately trying to know the state of reality, or the process by which something works; Whereas a decision is a choice, it is a process of selection between two or more courses of action.

I realize some of you will give different definitions of what a mistake is; I will (in most cases) either explain why, with that definition that doesn't exist, or why every decision is a mistake (which, depending on the definition, can have a different "error level").

To speed things up, I will give the 3 basic definitions that I have found and what my argument for each of them is:


A) A mistaken decision is one where the subject chooses that which is not the best choice he/she could've made in his own best interest, he/she could've made a better decision but he/she didn't.

B) A mistaken decision is that which leads the subject to something which was not what he/she predicted/wanted.

C) A mistaken decision is a term for referring to the measurement of difference between what a subject predicted/wanted and what actually happened. The greater this difference, the bigger the mistake.









A), which I found is the most common, implies that the subject made a choice which was not the best he/she could've made in his/her own interest.

In this case, I think this is stating something irreal. If the subject could've made a better choice, he/she would've made it; since every human decision seeks what's best for the individual making the decision.

Now let's analyze a few counter-arguments that some of you will provide:


1) The subject did not have enough information about the situation; and/or made a conclusion mistake, thinking something was true/correct when it wasn't. Therefore he/she couldn't make the better choice, but he/she could've if these obstacles were cleared.

2) The subject didn't have enough mental capacity to analyze the information he/she had. Therefore he/she couldn't make the better choice, but he/she could've if he/she was smarter and/or had help.

3) The subject didn't invest enough time/effort analyzing the information/situation. Therefore he/she couldn't make the better choice, but he/she could've if he/she had.

4) The subject knew what the best choice was, but made another out of a whim.


You see, all of these suggest that the subject could've made a better choice were the situation, or the subject himself/herself different. This is eluding the argument. This particular subject made the best choice he/she could've made for him/herself in that particular situation.

In 1), if he/she didn't choose to get more information on the subject, that was also a decision, and the reason why he/she didn't do it is that that was the best choice he/she could've made for himself/herself(comparing benefits and prejudices). In 2), if he/she didn't choose to look for help, it is also for the same reason. In 3), if he/she didn't choose to invest more time/effort, the reason is still the same. In 4), the whim alters this subject's short term 'wants' enough to make his decision different, even if later on he/she will regret this (it is in fact not the same subject who regrets the past decision, but I will get to that later)

And by the way, you can't judge a decision such as 3)'s to be one that doesn't bring the best result to the subject's interest, since you would probably be measuring only the profits/benefits from investing this time/effort, and not the losses/prejudices to the subject from doing so. Just like you usually can't judge a decision made out of a whim to be the one that doesn't bring the best benefit/prejudice ratio, since satisfying a whim is also a benefit, even if only a short-term one.
This is extremely common, that is why I added this here. In any case, I will restate this point later on in this post.



B), which is also common but not nearly as much as A), implies that any decision that doesn't provide the best results to the subject's needs/intentions, is a mistake.

Since we do not know everything, we can't tell if a particular decision's results are the absolute best. Most times (if not all) we can't even predict with 100% accuracy that a particular decision (or action) will result in a particular outcome. We must then assume that there is always a course of action with a better result, hence a better decision. It becomes clear now, that under this definition, every decision that we make should be regarded a mistake, or at least be considered that the odds it's not a mistake are extremely remote, bordering the impossible line.


C) is more rare, and it's an extension of B. It implies that “mistake” is not a black and white term, and that there's rather an error level scale.

The extension of my argument for B is then pretty obvious: That every decision is a mistake to a certain degree, and there are mild mistakes and more severe ones.




I think most of you will feel more comfortable, if any, with C, or some variation of it. But I want to add something on that (which can also apply to B, a little).

What I want you to have in mind is that, going by C, you are judging only the result(s), and not the decision itself. I'll show you what this means.

This definition implies that a mistake is something that doesn't have to do only with internal factors. It's not just the subject's doing. In other words, a mistaken decision doesn't have to do only with the decision itself. In fact the decision is only a part of what matters when judging if the decision itself is a mistake. It is the result that will ultimately show how much of a mistake a decision was.

Since we can't predict most things (or anything) with 100% accuracy, we must assume there's a degree of probability that we're wrong in everything, or in mostly everything.

This means that we must judge our predictions in expectation. Ultimately, what this means is that even if a choice X had better expectation than a different choice Y at the time of making the choice; the results can be quite different. It may later turn out that Y resulted in a better situation (for the subject) than X; though statistically X would be best.

By using C, you're implying that a mistake is something that, to a human being, happens more or less at random. Suppose a subject has a choice X that, as far as human knowledge goes, is probabilistically a zillion times better 99.99% of the time (better for the subject, of course!), and another choice Y that is only better than X's results 0,01% of the times, and only a tiny bit better. By C's definition, once the subject chooses X, if the result is that 0.01% of the times where it would've been best to go for Y, he/she made a mistake choosing X.

All of this last point can be argued against by the argument that it is only because of this very lack of knowledge that this apparently random factor comes into play here, and that the result is only necessary to prove how good the decision was on it’s own (again, the value of the decision needs be confirmed because of this lack of knowledge, which make it impossible to make a perfect analysis of the decision with a perfect prediction of the results). But you should have in mind that even if this is a good counter-argument, it doesn’t eliminate the fact that unless the subject (or maybe the analyzer) is omnipotent, this definition will always judge a mistake by it’s results rather than the decision itself.


A couple of points I wanted to add:

<u>The problem of making the subject’s interests our own, or rather trying to make our own interests the subjects’ when analyzing a decision:</u>

When analyzing a subjects’ decision, we must be as objective as possible about what the desired results are; this can often prove to be very hard, or even impossible, but what we must have in mind, is that the subject’s interests are not our own’s, by the same token, neither are our interests the subject’s. This means that it is up to the subject himself/herself to say whether a result is beneficiary or not, and how much so.


<u>What a subject is:</u>

A human being consists of the sum of their genetic and biological information, and all experiences/outside stimuli.
Something that I want to point out, is that a subject A at a given time and situation T, is something. He/she is only equal to himself/herself at T, but at T+1, “he/she” will be someone else. We can say it’s still subject A, but in fact it’s not. Changes have happened and now the subject is different. In fact we can go as far as to say it is not the same individual. Let’s call him A+1 instead.

What this means is that A’s interests are not exactly the same as A+1’s. Meaning an action that could grant a positive result for A, could also grant a negative result for A+1, or vice-versa.

Usually, imprinted in A’s interests are A+1’s (since instinctively A sees A+1’s benefits/prejudices as his/her own). But this interest, like many others, goes against other interests of the subject. A must weight a balance and choose between what’s best for A, A+1, A+2, etc. It is never an easy task, and often we find that A+1 “forgets” about what positive or negative effects did a particular decision have on A, and judges the decision solely on the effects it had on himself/herself.

Just to add something on this last issue, this is a personal problem for me. I can’t find the “right” balance. Sometimes, ideologically, it seems as though it doesn’t make sense to worry about my future interests. Other times it’s just the opposite. For now, while seeking an answer, I just let myself go, knowing I’m making a decision almost solely on feelings, with almost no regard for thought.
I guess I could make another thread for this issue; but I’ll see how this one goes.


Long post /images/graemlins/smile.gif

Waiting for your replies (please put thought in them, else I’ll spend very little or no time answering).

Borodog
05-07-2006, 01:00 PM
You have a lot of interesting points there, and I don't know that I disagree with any of it. I would suggest that you have made the topic overly complex. You might like to take a look at the opening chapters of Man, Economy, and State by Murray Rothbard.

I think the key to what you're discussing is not human decisions, but rather human actions. Every human being, through an action (and hence through the decision that leads to the action), seeks to exchange a less satisfactory state of existence for a more satisfactory one. Each human being has a personal subjective value scale that can never be completely specified and changes from moment to moment (as you ssaid in the OP, because the subject and his environemtn are effectively a different system every moment; his stimuli, his condition, and his knowledge change from moment to moment). All men seek to exchange their current position on their own subjective value scales for a better one through action (and again, decisions).

All actions, and hence decisions, benefit the actor/decision maker ex ante (i.e. before the action), or ele he simply would not make that decision and then take that action.

The important concept to understand about evaluating whether or not a certain decision/action was a "mistake" is to remember that value scales are subjective, i.e. the only person who can determine whether or not a decision/action was a mistake is the decider/actor, and he can only do that after the fact. We as external observes can speculate on whether or not we think the decider/actor made a mistake, often with great fidelity, but he is the ultimate judge.

The important concept to understand how an actor evaluates his action is again his internal subjective value scale. If he indeed does raise his position on his ISVS, he reaps psychic profit from the action. Meanwhile, if he actually ends up lowering his position on his ISVS, through unintended consequences of his action, he suffers psychic losses. The psychic loss that he feels is his realization that he made a "mistake".

And interesting result of this is that, as you noted, a mistake does not always stay a mistake, and a decision/action previously thought not to be mistaken might become a mistake later, since all actions have long term consequences.

For example, the decision and action to marry my first wife seemed at first to not be a mistake, yet it was later revealed to be a drastic mistake, and yet still later revealed to have not been a mistake at all. The last realization came from a change in my personal philosophy, when I realized that if I had not made those previous decisions, I would never have been the person I am now nor been in the position to marry my present wife, which was most definitely not a mistake.

Now, much of this depends on a particular interpretation of the word "mistake", and I will not argue with people who don't agree with that definition. For example, if my opponent shows me a pair of aces and I move all in with my 72o, only to be saved by running 7s on the turn and river, that doesn't mean that my play is somehow revealed not to be "mistaken" in the poker theoretic sense.

Just my incomplete thoughts on the subject.

soon2bepro
05-07-2006, 01:48 PM
Im not sure about action mistakes. I didn't refer to these, because the issue is much more complex, and Im not sure I grasp it fully yet.
For example, it could be argued that an action is what it is, and the result is irrelevant to the action. When I think I made a mistake drinking too much water, what I mean is I made a mistake deciding to drink too much water.




[ QUOTE ]
For example, if my opponent shows me a pair of aces and I move all in with my 72o, only to be saved by running 7s on the turn and river, that doesn't mean that my play is somehow revealed not to be "mistaken" in the poker theoretic sense.

[/ QUOTE ]

It then becomes clear that it's not the result you care about, but the decision itself. Im not sure it's compatible with the example you gave on marrying your wives, where you seem to be judging the decision for it's results, and not for the decision itself.
Going all in with your 72o might be a bad profit decision on it's own, but if the result is good, and you apply the same analyzing method that you seem to have applied to your marrying example, then it shouldn't be a mistake, since the result was profitably good.

For example, when you say

[ QUOTE ]
The psychic loss that he feels is his realization that he made a "mistake".

[/ QUOTE ]

You seem to be regarding the 72o all in move wasn't a mistake.

In sum, this seems to be a bit contradictory, bit I might have gotten the poker example part wrong.

Borodog
05-07-2006, 02:07 PM
You snipped this part:

[ QUOTE ]
Now, much of this depends on a particular interpretation of the word "mistake", and I will not argue with people who don't agree with that definition.

[/ QUOTE ]

What I meant was that there were different kinds of "mistakes" , and the mistakes I was referencing were mistakes revealed by subjective realization of psychic profit or loss. A group of poker players can agree objectively that a certain play was a "mistake" in the game theoretic sense, even if the player is later rewarded by luck. This is what leads bad players to have poor play reinforced by luck; luck turns their strategic mistake into an apparently psychicly profitable decision.

Sorry if I didn't make myself clear.

Riddick
05-07-2006, 02:18 PM
[ QUOTE ]
For example, it could be argued that an action is what it is, and the result is irrelevant to the action.


[/ QUOTE ]

Impossible. How can the result of an action be irrelevant to the action that caused the result?

Every voluntary action is taken purposefully. The outcome is always uncertain, therefore every action is "entrepreneurial" and involves risk, the risk that things might not work out the way you hoped.

If you improperly gauged the risk, then the action was a mistake, regardless of the results. If the result has no downside (a freeroll in poker, or in life, asking a girl out on a date...(for the most part)), and the upside outweighs the opportunity cost, then it can't be a mistake because there is no risk of loss.

[ QUOTE ]
It then becomes clear that it's not the result you care about, but the decision itself.

[/ QUOTE ]

Again, impossible. You care about the intended result and so you take the action.

soon2bepro
05-07-2006, 04:04 PM
Borodog: Ok, it's a good point. In fact I think you stated what truly is a mistake to most people. Only they don't really know this, and they have a definition that isn't really the one that defines what a mistake is to them. My point was more about having people realize what they truly regard a mistake.



Riddick:

[ QUOTE ]
Impossible. How can the result of an action be irrelevant to the action that caused the result?

[/ QUOTE ]

Because the action is just the carrying out of a decision.

[ QUOTE ]
If you improperly gauged the risk, then the action was a mistake, regardless of the results.

[/ QUOTE ]

In this particular case, you're talking about wrong risk gauging, which I think it's a conclusion mistake.
See the beginning of my OP. Alternatively, you might want to see my 1) counter-argument to A)'s definition, and my own reply to it (also in the OP).



[ QUOTE ]
[ QUOTE ]
It then becomes clear that it's not the result you care about, but the decision itself.

[/ QUOTE ]

Again, impossible. You care about the intended result and so you take the action.

[/ QUOTE ]

I meant he only cares about the decision, to which of course the intended result is crucial, but what I meant is that, in that example, it seemed to me that he doesn't care if the final result is bad, so long as the decision is good in itself (aka, has a good expectation).

soon2bepro
05-07-2006, 04:46 PM
Borodog:

On my last reply, I want to add that this is still a variation of C), and that all the consecuences of that definition that I explained apply (as you already know). My point here is that it might be counter-productive to consider a decision a mistake simply because the result was bad. And what most people do, is do this and then justify making another decision in a similar situation. For example, in your poker example, this feeling of psychic profit would be used to justify that the decision of going all in with 72o was in fact good. (the concept is reversed in this example, I hope you understand my previous argument)