Counterfactuals as modal conditionals, and their probability

In this paper we propose a semantic analysis of Lewis' counterfactuals. By exploiting the structural properties of the recently introduced boolean algebras of conditionals, we show that counterfactuals can be expressed as formal combinations of a conditional object and a normal necessity modal operator. Specifically, we introduce a class of algebras that serve as modal expansions of boolean algebras of conditionals, together with their dual relational structures. Moreover, we show that Lewis' semantics based on sphere models can be reconstructed in this framework. As a consequence, we establish the soundness and completeness of a slightly stronger variant of Lewis' logic for counterfactuals with respect to our algebraic models. In the second part of the paper, we present a novel approach to the probability of counterfactuals showing that it aligns with the uncertainty degree assigned by a belief function, as per Dempster-Shafer theory, to its associated conditional formula. Furthermore, we characterize the probability of a counterfactual in terms of Gärdenfors' imaging rule for the probabilistic update.