This paper examines circumstances under which subjectivity enhances the effectiveness of inductive reasoning. We consider agents facing a data-generating process who are characterized by inference rules that may be purely objective (or data-based) or may incorporate subjective considerations. Agents who invoke no subjective considerations are doomed to ineffective learning. The analysis places no computational or memory limitations on the agents: the role for subjectivity emerges in the presence of unlimited reasoning powers.
- Inductive inference