Laplace Principle
Also known as the ‘Principle of insufficient reason’, the Laplace principle provides us with a means of moving from uncertainty to risk.
Briefly stated, it says that ‘in the absence of sufficient reason to do otherwise, we may assume each of the possible outcomes of a change event has an equal likelihood of occurrence.
Thus, if there are no outcomes, each as assigned a probability of occurrence of 1/n. Although it is not a strategy or a criterion in itself, it does enable us to apply the solution methods for decisions under risk to problems for which they would otherwise be unavailable.