Home
/
RELIGION & LIBERTY ONLINE
/
The Low Cost of Being Wrong
The Low Cost of Being Wrong
Aug 26, 2025 4:30 PM

In March 2009 the deputy chief of Italy’s Civil Protection Department and six scientists who were members of a scientific advisory body to the Department held a meeting and then a press conference, during which they downplayed the possibility of an earthquake. Six days later an earthquake of magnitude 6.3 killed 308 people in L’Aquila, a city central Italy. Yesterday, the seven men were convicted of manslaughter and sentenced to six years in prison for failing to give adequate warning to the residents about the deadly disaster.

The news reports imply that the scientists were sentenced because of their failure to predict the earthquake. But Roger Pielke, Jr., a professor of environmental studies at the University of Colorado, says “one interpretation of the Major Risks Committee’s statements is that they were not specifically about earthquakes at all, but instead were about which individuals the public should view as legitimate and authoritative and which they should not.”

Whether it was because of their predictions or because of the authority with which they made their claims, the scientists were sent to prison for making an erroneous prediction about how nature would act. Such a judicial ruling would strike most of us Americans as absurd. We’d rightly assume that it might provide scientists with an incentive to not make any predictions at all. As Thomas H. Jordan, a professor at the University of Southern California, says, “I’m afraid it’s going to teach scientists to keep their mouths shut.”

This seems reasonable until you consider what this says about the current incentive structure. As Stephen J. Dubner recently wrote, “the world is awash in prediction, much of it terrible, in large part because there are strong incentives to make bold predictions and weak penalties for bold predictions that e true.”

This would be a trivial concern if there was no cost associated with “bold predictions that e true.” But in many cases someone—though often not the predictor—has to pay a significant price to either protect against the predicted e or to prevent it from occurring. Take, for example, the case of anthropogenic climate change. Some scientists claim that we need to take drastic (and expensive) action to prevent global warming. Other scientists claim the threat is overstated and believe we should avoid implementing costly preventive measures.

In the first case, climate scientists expect the public to make an expensive bet that they’ll be proven right. In the later, scientists expect us to make a low cost bet that they will be correct—even if we will have to pay dearly later if they turn out to be wrong. In each case, the brunt of the cost of being wrong is transferred to the non-experts. The experts, however, often have an incentive to make a bold prediction even if there is a low probability of their being right. For them, there is almost no downside for being wrong. But for the rest of the world, economic deprivation or even loss of freedoms could result from their erroneous prediction.

What if scientists (and other predictors) faced a penalty for their inaccurate claims? Sending scientists to jail for being wrong about earthquakes is probably excessively harsh, of course. But what if they lost their job or had to pay a stiff fine when their prognostications failed e true? I suspect the result would be that fewer bold predictions would be made and that the ones that were would be more reliable and based on incontrovertible evidence. Whatever the case, we would likely all be better off if the personal cost of being wrong were substantially higher.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
The sweetness of the Law
menting briefly on Psalm 19, C. S. Lewis observes the description of God’s Law as “sweeter than honey” and “more precious than gold,” the kind of descriptions that occur again and again throughout the Psalter. Lewis writes, In so far as this idea of the Law’s beauty, sweetness, or pireciousness, arose from the contrast of the surrounding Paganisms, we may soon find occasion to recover it. Christians increasingly live on a spiritual island; new and rival ways of life surround...
Sheep and property rights
Regarding biblical economics at St. Maximos’ Hut, Andy Morriss writes on John 10:9-16: “Shepherds care for their flocks because their flocks belong to them; hirelings will not sacrifice for their flocks because the flocks do not belong to them. What better illustration of the value of property rights in encouraging stewardship could there be?” ...
Hodgepodge is good
Silla Brush penned an interesting little piece in the latest U.S. News and World Report, using the Massachusetts health care bill as a springboard to a wider observation of policy innovation at the level of state government. Leaving aside what any of us may think about any of the initiatives mentioned (they mostly represent bigger government), the observation is a good one. But then this: When the feds stall, leave it to the states. The result may be a hodgepodge....
Marriage in the city
In this mentary, Jennifer Roback Morse takes a look at the socio-economic factors that influence the age at which young people aim to get married. Many are waiting. One reason why so many young people put off marriage unitl their late 20s or early 30s, says Morse, is that the cost of setting up an independant household is too high — unjustifiably high. Physically, humans are ready to reproduce in the mid-teens; financially, young people are not ready to be...
An Easter reflection
pleted his discussion of the covenant of redemption, Herman Witsius writes the following at the conclusion of Book II of his De oeconomia foderum Dei cum hominibus: What penetration of men or angels was capable of devising things so mysterious, so sublime, and so far surpassing the capacity of all created beings? How adorable do the wisdom and justice, the holiness, the truth, the goodness, and the philanthropy of God, display themselves in contriving, giving, and perfecting this means of...
Rights of skilled and unskilled alike
An op-ed earlier this week in the New York Times examines the emphasis and attention that has been placed on the influx of low-wage immigrants to the United States. According to Steven Clemons and Michael Lind, “Congress seems to believe that while the United States must be protected from an invasion of educated, bright and ambitious foreign college students, scientists, engineers and entrepreneurs, we can never have too many low-wage fruit-pickers and dishwashers.” They base this conclusion on many of...
Prayer for Maundy Thursday
Almighty and everlasting God, who in the Paschal mystery hast established the new covenant of reconciliation: Grant that all who have been reborn into the fellowship of Christ’s Body may show forth in their lives what they profess by their faith; through the same Jesus Christ our Lord, who liveth and reigneth with thee and the Holy Spirit, one God, for ever and ever. Amen. –U.S. Book of Common Prayer, “Thursday in Easter Week.” ...
Democracy and education
Here’s an abstract of some recent NBER research: “Why Does Democracy Need Education?,” by Edward Glaeser, o Ponzetto, Andrei Shleifer “Across countries, education and democracy are highly correlated. We motivate empirically and then model a causal mechanism explaining this correlation. In our model, schooling teaches people to interact with others and raises the benefits of civic participation, including voting and organizing. In the battle between democracy and dictatorship, democracy has a wide potential base of support but offers weak incentives...
Prayer for Good Friday
Almighty Father, who hast given thy only Son to die for our sins and to rise again for our justification: Give us so to put away the leaven of malice and wickedness, that we may always serve thee in pureness of living and truth; through the same Jesus Christ thy Son our Lord, who liveth and reigneth with thee and the Holy Spirit, one God, now and for ever. Amen. –U.S. Book of Common Prayer, “Friday in Easter Week.” ...
Bigger and better
When I was in college, living in the dorms, friends of mine would play a game called bigger and better. In this game, they would take an object–something that they owned–and trade it up for something that was worth a bit more to them, but worth a bit less to the person that they were trading with. This is a perfect example of a market economy. You have something that you can trade, somebody else has something that they can...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved