Decisions and Higher-Order Knowledge.

A knowledge-based decision theory faces what has been called the prodigality problem (Greco, 2013): given that many propositions are assigned probability 1, agents will be inclined to risk everything when betting on propositions which are known. In order to undo probability 1 assignments in high risk situations, the paper develops a theory which systematically connects higher level goods with higher-order knowledge. [ABSTRACT FROM AUTHOR]