Home
/
RELIGION & LIBERTY ONLINE
/
The Low Cost of Being Wrong
The Low Cost of Being Wrong
Jan 30, 2026 5:50 AM

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
Whether welfare recipients should work is a question of values
Should people who receive welfare benefits from the government be required to work? There are at least two ways to consider that question. The first is from the perspective of technical economics. Do work requirements lead to higher rates of employment for welfare beneficiaries? Does a lack of such requirements discourage work? The second is a matter of moral philosophy. Michael R. Strain argues that it’s the latter approach that should be our starting point when considering welfare policy: Whom...
Why we need virtue education
“The wider culture needs virtue education, because a free society relies on certain bedrock moral principles being inculcated and incarnated,” says Josh Herring in this week’s Acton Commentary. We need business men, doctors, lawyers, plumbers, electricians, and grocers who act with the honesty which allows the free market to thrive. Virtue, character, ethics – these things matter profoundly, and it is one of the tasks of education to transfer the system of values from one generation to the next. And...
Why farm subsidies hurt small farmers
Have you ever listened to a classical symphony and thought the music needed more distortion? Or have you ever read a newspaper and believed it would have been improved if it had more disinformation? Most of us don’t appreciate distortion in our music or disinformation in our news. Yet far too many do favor distortion and disinformation when es to pricing. Prices signal information in markets. A “market” is a summary term for a variety of voluntary exchange for modities...
Welfare states cultivate the sin of sloth
Alfred Tennyson wrote, “In the Spring a young man’s fancy lightly turns to thoughts of love.” But each summer“in Mediterranean countries, the youth seemto be haunted by the same pressing question: ‘Will i get a proper job?'”writes Mihail Neamtu at Acton’sReligion & Liberty Transatlantic website. Neamtu, a public intellectual from Romania, writes in his penetrating essay: In Greece, unemployment stands at 42.9 percent; in Spain, unemployment is 35 percent; in Italy, it is more than 30 percent. Compared to the...
Sam Brownback hosts first-ever State Department summit on religious liberty
The fight for religious liberty has intensified in America, whether among retail giants,restaurant chains,bakers and florists,nuns, or other imminent obstructionson the path paved byObergefell vs. Hodges. Meanwhile, intense religious persecution continues to grow around the globe. The appointment of Justice Neil Gorsuch to the Supreme Court gave room for optimism here at home. More recently, given the recent changes in the State Department — namely, the appointment of CIA director Mike Pompeo as secretary of state and the confirmation of...
The U.S. is far more religious than other wealthy nations
Some countries are rich and some countries are religious. But the U.S. is the only country that has higher-than-average levels of both prayer and wealth, according to a new study by Pew Research. In 101 other countries surveyed that have a gross domestic product of more than $30,000 per person, fewer than 40 percent of adults say they pray every day.As the survey notes,more than half of American adults (55 percent) say they pray pared with 25 percent in Canada,...
New Issue of the Journal of Markets & Morality (Vol. 21, No. 1)
The newest issue of the Journal of Markets & Morality has been published online and print copies are ing. This issue is a theme issue on “The Role of Religion in a Free Society,” with guest editors Richard Epstein and Mario Rizzo of New York University School of Law, and Michael McConnell of Stanford Law School. Contributions range from legal analyses to theoretical forays to fascinating case studies all centered on the question of the nature, limits, role, and rights...
The bright side of the trade war with China?
This year marks the 40th anniversary of one of the most consequential anti-poverty programs in human history. Now, there is evidence that its spillover effects may lift millions more out of dire need. In 1978, 18 farmers from the Chinese village of Xiaogang secretly signed “the document that changed the world.” Madsen Pirie of the Adam Smith Institute writes: A few years earlier they had seen 67 of their 120 population starve to death in the “Great Leap Forward” Now...
Unemployment as economic-spiritual indicator — July 2018 report
Series Note: Jobs are one of the most important aspects of a morally functioning economy. They help us serve the needs of our neighbors and lead to human flourishing both for the individual and munities. Conversely, not having a job can adversely affect spiritual and psychological well-being of individuals and families. Because unemployment is a spiritual problem, Christians in America need to understand and be aware of the monthly data on employment. Each month highlight the latest numbers we need...
Radio Free Acton: Interview with a Venezuelan dissident; Jared Meyer on the sharing economy
In this episode of Radio Free Acton, Noah Gould, summer intern at Acton, interviews Javier Avila, a Venezuelan dissident who speaks of both the bleak and hopeful future he sees for the resistance against tyrannical government in Venezuela. Then, another Acton summer intern, Jenna Suchyta, talks to Jared Meyer, senior fellow at the Foundation for Government Accountability, about the sharing economy. Check out these additional resources on this week’s podcast topics: Read “Venezuela: Latin America’s socialist nightmare” by Noah Gould...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved