Home
/
RELIGION & LIBERTY ONLINE
/
The Low Cost of Being Wrong
The Low Cost of Being Wrong
Mar 17, 2026 1:41 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
How American Protectionism is Like a Foreign Naval Blockade
The evening news reports there has been plete blockade of the U.S. On the East Coast of the United States, Russian forces have instituted a naval and air blockade, similar to the one being imposed by China on our West Coast. A similar blockade has been set up on the borders of Canada and Mexico. The blockade is somewhat porous. People are allowed to pass through freely (but only if they are not trying to enter the U.S. illegally). Exports...
Donald Trump and Milton Friedman Debate Free Trade
If it wasn’t for Bernie Sanders, Donald Trump would winthe title of most economically illiterate presidential candidate in the short history of the twenty-first century. A prime example of why he’d earn this ignoble title is Trump’s opposition to free trade — a position which, not surprisingly, he shares with Sanders. The only real difference between Sanders and Trump on this issue is that no one trust that Trump would actuallycarry out his proposed destructive policies (he’d flip-flop on the...
Video: Michael Matheson Miller on Technocracy and The Global Political Consensus
The 2016 Acton Lecture Series continued on March 3rd at Acton’s Mark Murray Auditorium with an address by Acton Research Fellow and Producer ofPoverty, Inc.Michael Matheson Miller. Miller’s topic for the day was “Technocracy and The Global Political Consensus.” Many of our current political and social challenges center around the fundamental question of what it means to be a human being, and our understanding of what it means to live an authentic human life. The answers to these questions will...
Alabama Church Pays Off Payday Loans
About twenty years ago I made some terrible choices and found myself in a serious financial bind. The amount I needed wasn’t much — about $200 — but without it I wouldn’t have been able to pay my rent. I took out a payday loan that cost me $30 every two weeks. It took about eight weeks to get clear of the loan, resulting in a cost of $120 to borrow $200 for two months. Was I fooling myself thinking...
Liberty > Anti-Establishment Angst
With Donald Trump and Bernie Sanders outperforming all expectations in the current election cycle, much has been said and written about the widespread dissatisfaction with the so-called “establishment.” “We’re tired of typical politicians,” they say. “It’s time for real change and real solutions. It’s time to shake up the system!” Yet, as Jeffrey Tucker points out, blind opposition to the status quo, no matter how bad it may be,is not the same as supporting liberty. The state power we oppose...
Working for Our Neighbor: A Lutheran Approach to Vocation and Economic Life
“If you are a manual laborer, you find that the Bible has been put into your workshop, into your hand, into your heart. It teaches and preaches how you should treat your neighbor.” –Martin Luther Christian’s Library Press has now released Working for Our Neighbor, Gene Veith’s Lutheran primer on vocation, economics, and ordinary life. The book joins Acton’s growing series of tradition-specific, faith-work primers, whichalsoincludes Baptist, Wesleyan, Pentecostal, and Reformed perspectives. Veith, who describesMartin Luther as “the great theologian...
Cultural Depictions of Communism and Christianity
As the author of a book titled The Roots of Coincidence, Arthur Koestler would appreciate the coinky dinks of the past week. First, I finished re-reading Koestler’s two nonfiction works of 20th century European madness, Dialogue with Death and Scum of the Earth. One details the author’s imprisonment by Francisco Franco during the Spanish Civil War and the other covers his incarceration by the French in the first months of World War II – and both are harrowing. Second, last...
Just how bad is crony capitalism?
Cronyism is ugly. It hurts the economy, it’s unjust, and corrupts the core of democracy. “The damage that cronyism has inflicted on the economy is considerable,” Samuel Gregg writes in a new piece for Public Discourse. “[C]ronyism also creates significant political challenges that, thus far, Western democracies are struggling to e.” The crony capitalism seen from the Trump presidential campaign and many others is not something that’s new to America or Western civilization. As long as there have been governments,...
Hail, GMO Cassava!
Oh, dear! GMO cassava can potentially feed millions on the African continent? Heaven forfend![/caption]If you grew up outside the African and South American continents you can be forgiven for thinking cassava is the latest variation of salsa music or perhaps the funky new energy beverage trendy hipsters are drinking these days. In Africa, however, 500 million individuals recognize cassava as a dietary staple much like the rest of the world enjoys potatoes and rice. Native to South America, cassava was...
How to Understand the Folk Marxism of Trump Supporters
The phenomenon that is Donald Trump and his presidential campaign can only truly be understood when you recognize his basic appeal: he’s bringing a brand of folk Marxism to an entirely new audience. Before we unpack what this means, we must first understand what it does not mean. Folk Marxism is not Classical Marxism, much munism. Marxism has so many varieties that even Karl Marx once said, “what is certain is that I myself am not a Marxist.” Folk Marxism...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved