"This bill clearly belongs to exactly one of the two us; I think it is 80% likely to be yours and 20% likely to be mine, and you think it is 85% likely to be mine and 15% likely to be yours. In order to fairly divide it, we weigh our beliefs equally (by symmetry), and divide it according to the ratio 80+15:20+85 you:me; that's 95:105, or 47.5:52.5. That's a 52.5% chance that I get the bill, and a 47.5% chance that you get it." (Same expected values as 2, from equivalent math)
I don't think there's a general case for the function g. Consider the case where hypotheses B, C, and D are mutually exclusive. Proposition A is equivalent to "not C" but B is only known to be mutually exclusive with C. On discovering that D is false, A becomes equivalent to B, but there is also potentially new information about C.
Variant 1: In a departure from Monty Hall; I put a bean under one of the cups B,C,D after rolling a d10. (Time a) Then I show you what is under cup D. There is not a bean. (Time b)
If the odds ratio at time a is 2:4:4, then the odds at time b are 2:4:0. Proposition A went from 6/10 likely to 1/3 likely, while B went from 2/10 to 1/3.
Variant 2: I roll the die; if the result is prime, I put the bean under cup d. Otherwise, if the result is greater than five, I put the bean under cup c. Otherwise I put the bean under cup b. At time a, the odds are 2:4:4. Then I tell you that the number I rolled is a perfect square. You should update to 2:1:0
In both cases, you updated that B and not-C were equivalent, but in the latter case you gained new information about B and C. In the general case, if there is no new information about B and C, then the ratio B:C should remain constant; I intuit that that will probably mean a fairly simple transformation.
In "Principles of Disagreement," Eliezer Yudkowsky shared the following anecdote:
I have left off the ending to give everyone a chance to think about this problem for themselves. How would you have split the twenty?
In general, EY and NB disagree about who deserves the twenty. EY believes that EY deserves it with probability p, while NB believes that EY deserves it with probability q. They decide to give EY a fraction of the twenty equal to f(p,q). What should the function f be?
In our example, p=1/5 and q=17/20
Please think about this problem a little before reading on, so that we do not miss out on any original solutions that you might have come up with.
I can think of 4 ways to solve this problem. I am attributing answers to the person who first proposed that dollar amount, but my reasoning might not reflect their reasoning.
I am very curious about this question, so if you have any opinions, please comment. I have some opinions on this problem, but to avoid biasing anyone, I will save them for the comments. I am actually more interested in the following question. I believe that the two will have the same answer, but if anyone disagrees, let me know.
I have two hypotheses, A and B. I assign probability p to A and probability q to B. I later find out that A and B are equivalent. I then update to assign the probability g(p,q) to both hypotheses. What should the function g be?