Today's post, If Many-Worlds Had Come First was originally published on 10 May 2008. A summary (taken from the LW wiki):
If early physicists had never made the mistake, and thought immediately to apply the quantum laws at all levels to produce macroscopic decoherence, then "collapse postulates" would today seem like a completely crackpot theory. In addition to their other problems, like FTL, the collapse postulate would be the only physical law that was informally specified - often in dualistic (mentalistic) terms - because it was the only fundamental law adopted without precise evidence to nail it down. Here, we get a glimpse at that alternate Earth.
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First let's be clear about what we're explaining: the Born rule as it appears in conventional observer-centric QM, which is best understood as an incomplete positivistic theory in which "measurements" of "observables" are reality and wavefunctions are just calculating devices.
Both Bohmian mechanics and objective collapse theories have a probabilistic axiom among their defining postulates. Bohmian mechanics is deterministic but it explains quantum-mechanical states as a particular probability distribution over Bohmian states. Objective collapse theories are nondeterministic and probability enters directly in the dynamical rule governing when and how the quantum state vector departs from Schrodinger evolution and makes a random jump.
What they have in common is that the ontologically incomplete framework of ordinary QM - in which "observables" are a fundamental concept - is explained in terms of a deeper theory which makes no reference to observers, measurements, consciousness, etc. The deeper theory is not much deeper in either case, but the subjective cast of QM has in both cases been replaced by a theory which just says how things are.
When we come to many worlds theories, and to retrocausal theories like the transactional interpretation, this condition is not met. Many worlds certainly has an objective-looking formalism - reality is just a wavefunction-of-the-universe, evolving according to a Schrodinger equation - but it does not have a derivation of the Born rule given this ontology. In other words, it potentially possesses objectivity, but presently falls short of actually explaining QM. Certainly various derivations have been claimed (David Deutsch) or proposed (Robin Hanson). But Deutsch's claim is (correctly) disputed, while Robin's proposal has a number of issues, and still lacks a precise formulation for quantum systems of any complexity or realism. The only sure way I see to get the Born rule from many worlds is to go to some form of quantum cosmology in which a set of distinct universes (e.g. the consistent histories of Gell-Mann and Hartle) or universe-moments (e.g. the time capsules of Julian Barbour) is enumerated, and to simply declare that each universe has a probability or a "degree of reality" equal to the squared modulus of its amplitude. But then you don't actually need the wavefunction any more, all that matters is the probability distribution on the set of universes. The price of making many worlds into a formally exact theory is that you abandon most of the concepts which define it informally.
As for the transactional interpretation, it has the complementary problem of not having an objective-looking formalism. It's a way of talking about the (conventional, subjectively flavored) QM formalism which sounds like it ought to be based on some sort of objective theory, but no such theory has been written down. You could count Feynman-Wheeler absorber theory as an attempt at an objective explanation of QM in the transactional spirit, but it falls short in the details. However, there are various other objective options which remain largely undeveloped.
By the way, I don't believe that any of the above is The Answer, but one or more of them might be a step towards the truth. The truth is going to come from a study of the most advanced theories, such as M-theory, and these existing paradigms of "how to explain QM" are at best ideas and inspirations for how to proceed regarding the real thing. The most advanced theories have numerous properties missing from nonrelativistic QM - for example, the holographic duality that appears in quantum gravity - and some of these new properties are probably essential to the ultimate explanation of QM. I would be unsurprised to learn that the final explanation of QM, whatever it is, is specific to M-theory, and that all lesser quantum theories are just echoes of M-theory in its present-day, obfuscated, QM-like form. (Needless to say, these are eccentric personal opinions, which is why I didn't start my reply with them.)
How is a "probabilistic axiom" different from an assumed Born rule? You seem to be penalizing the latter and calling it incomplete or inelegant but I don't see how the first is better.