Home
/
RELIGION & LIBERTY ONLINE
/
The Low Cost of Being Wrong
The Low Cost of Being Wrong
Jan 12, 2026 6:50 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
‘Do you, or have you ever, belonged to the Boston Tea Party?’
Keith Lambert has a riveting first-hand account at his new blog about Cold War Communist informant Herb Philbrick. Some key excerpts: Back in the 1980’s I was more interested in dating his daughter than I was in learning about the man she called her father. Nevertheless because of his poor night vision my mother-in-law to be Shirley pulled me aside and asked me to drive the two of them to Boston for an appearance of Herb’s on a locally syndicated...
Conservatism as Gratitude
Yuval Levin, one of the brightest minds in America, was recently awarded the 2013 Bradley Prize for his work in advancing the cause of limited government. In his remarks on accepting the prize, Levin explains the connection between conservatism and the virtue of gratitude: To my mind, conservatism is gratitude. Conservatives tend to begin from gratitude for what is good and what works in our society and then strive to build on it, while liberals tend to begin from outrage...
Virginia Power Company Prudently Rejects Renewable Mandate Resolution
One of the greatest benefits of living in the United States is our access to plentiful, affordable domestic energy. These benefits extend to the nation’s poor who enjoy an unprecedented wealth of heat in the winter and air conditioning in the summer, plentiful light in the evening hours and electronic devices that power up at the press of a button. Driving up costs for energy forces a itant rise in costs to consumers in every strata of society. Such has...
EVACUATE THE SCHOOLCHILDREN! It’s a FIRE SALE!
Acton’s enormously exciting FIRE SALE continues in the Acton Audio Store! We’ve marked down prices on our 2012 Acton University audio by SEVENTY-FIVE PERCENT! Talks by luminaries such as Michael Novak, Eric Metaxas and Arthur Brooks are available for the low, low price of fifty cents! You’d have to be crazy not to check it out! AND… scene. ...
5 Facts About Fatherhood In The United States For Father’s Day
There are almost 2 million single dads raising kids in the U.S.About 24 million children do not live with their biological father.In 1965, dads spent about 2 1/2 hours a day with their child; today, dads spend about 6 1/2 hours with their child daily.70% of Americans believe that a father’s absence from the home is the most significant problem facing our country today.Even in high crime neighborhoods, 90% of children from stable 2 parent homes where the father is...
Reclaiming Feminism
AEI Scholar Christina Hoff Sommers is on a quest to reclaim feminism. Her new book, Freedom Feminism and Why It Matters Today, explores why so many women today reject the title of “feminist.” She discusses the topic further in the following video. ...
How to Measure an Economy
Among the most significant economic challenges in America today is getting Americans to understand what an economy is. When the Latin term oeconomia was first used in the 1500s it meant “household management.” A few centuries later, the term political economy was used in reference to the economies of states or polities. It wasn’t until the modern era, though, that “economy” became to refer primarily to the production and distribution of national e and wealth and lost almost all connection...
We Are All The Problem
rades, is the answer to all our problems. It is summed up in a single word– Man” ― George Orwell, Animal Farm We are clearly at a point where we are all to be treated as criminals. Why? Because it’s politically incorrect to name the actual criminals. If a terrorist is fueled by a fundamentalist vision of his religion, such as the Tsarnaev brothers, we are told that their radical roots are “mysterious” or religion wasn’t even a factor in...
Peter Schweizer Talks Congressional Insider Trading
In his bestseller, Throw Them All Out, Peter Schweizer declares, “The Permanent Political Class has no sense of urgency to change because, for them, business is good.” Schweizer, who is interviewed in the latest issue of Religion & Liberty, appeared today on the Mike Huckabee radio show to talk congressional insider trading. Schweizer told Huckabee that “Big government creates big profits for people that are in power.” Schweizer added that this is not a partisan problem but a human problem...
Autocam Takes Battle Against HHS Mandate to the Sixth Circuit
On Tuesday June 11, Autocam Corporation went before the U.S. Court of Appeals 6th Circuit Court in Cincinnati to argue against the enforcement of the Health and Human Services birth control mandate. President and CEO of Autocam and Autocam Medical, John Kennedy, says that “the law forces some employers to participate in what they believe is intrinsic evil.” But his request for an injunction had been denied by the US District Court for the Western District of Michigan. A spokespersonfrom...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved