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Decision-making under uncertainty.

Many important decisions must be made before uncertainty disappears. Philosophy, finance, behavioral economics and institutional experience offer different tools for dealing with that fact — without promising what no method can deliver: complete certainty.

Central question
How should we decide when we cannot know everything we would like to know?

The problem is not to choose between “certainty” and “ignorance”. It is to learn to distinguish degrees of knowledge, risk, hypothesis, judgment and what remains open.

The problem

Deciding does not mean waiting until every doubt has disappeared.

In many contexts, postponing a decision until perfect information is available is not a real option. Markets change, projects must move forward, extreme events require responses, careers evolve, and human relationships do not offer complete probabilities.

Rationality, in such cases, does not consist in manufacturing certainty. It consists in organizing what we know, acknowledging what we do not know, making assumptions visible, comparing alternatives, and accepting that some decisions will remain open to revision.

Uncertainty does not eliminate the possibility of judgment. It makes it more important to understand how that judgment is being formed.
Four lenses

The same problem seen through different traditions.

None of these perspectives solves decision-making on its own. What matters is precisely what happens when they correct and limit one another.

01 · Philosophy

Skepticism & judgment

Skepticism helps us distrust the rush to turn belief into certainty and preserve room for inquiry, revision and experience.

02 · Behavior

Biases & forecasting

Behavioral economics shows that judgment and forecasting can be systematically shaped by shortcuts, framing, overconfidence and other patterns.

03 · Finance

Risk & scenarios

Financial models make it possible to quantify parts of the problem, compare scenarios and make assumptions explicit — without turning the model into the world itself.

04 · Institutions

Coordination & consequences

Public and organizational decisions involve multiple actors, time horizons, responsibilities and effects that cannot be reduced to a single objective function.

A useful distinction

Not all uncertainty behaves like calculable risk.

When quantification is possible

Probabilities, data and scenarios can help a great deal.

There are situations in which frequencies, distributions, sensitivities and scenarios allow alternatives to be compared in a disciplined way. Even then, decision quality depends on assumptions and on how results are interpreted.

When quantification is not enough

Judgment remains unavoidable.

Some decisions involve novelty, structural change, conflicting values or effects that are difficult to measure. In such cases, assigning a number may organize the problem — but it does not dissolve uncertainty.

A decision process

Five movements before, during and after the choice.

This is not a universal formula. It is a discipline of inquiry that can reduce blind spots without pretending to eliminate contingency.

01

Define the problem

Before looking for an answer, ask what decision actually needs to be made, by whom, over what horizon and under what constraints.

02

Separate knowledge from assumption

Distinguish facts, estimates, inferences, hypotheses and gaps. Clarity about the degree of knowledge prevents rhetorical confidence from being mistaken for evidence.

03

Make criteria explicit

Identify what counts as success, which values are involved, who bears the costs, and which consequences are absent from the main indicator.

04

Compare alternatives and scenarios

Use models, probabilities and sensitivities when they are informative — and also discuss what remains outside them.

05

Decide while remaining open to revision

A good decision need not be irrevocable. When new information appears, revising a choice can be a sign of rationality rather than weakness.

What skepticism adds

Doubt need not mean paralysis.

A practical reading of skepticism can contribute to decision-making precisely because it removes from rationality the obligation to produce certainty where none exists.

This does not make “any choice” a reasonable one. On the contrary: it requires examining reasons, confronting positions, distinguishing evidence from the appearance of evidence, and remaining available for correction.

Skeptical discipline
Avoid two excesses: premature certainty and doubt that becomes an excuse not to act.

Between dogmatism and paralysis lies a field of provisional, responsible and revisable judgment.

Where the problem appears

Different contexts, similar structure.

The concrete content changes, but the need to decide with incomplete information reappears across several areas of my work.

Investments

Capital, risk and return

Valuation, scenarios and probabilities help compare choices without eliminating uncertainty about the future.

Organizations

Strategy and behavior

Business decisions combine incentives, biases, imperfect data and effects that emerge over different time horizons.

Climate & development

Response and resilience

Extreme events and reconstruction require urgent action involving multiple actors and long-term consequences.

Practical life

Choices without an algorithm

Career, transitions and conflicts of values also require judgment when no calculation can provide the answer.

Keep thinking

Uncertainty is not the absence of thought.

Precisely when there is no complete guarantee, it becomes more important to examine how we judge, which models we use and what reasons support our choices.

Editorial path

Translated essays

Four essays available in English that deepen the work on skepticism, uncertainty and practical philosophy.