According to James, pragmatic reality seems to be an individual's construction of ideas and is based upon the fulfillment of one's own interests. First of all, James believes that there is a number of different "worlds" or realities that exist such as the world of science, the world of abstract truths, etc. Of these worlds that James thinks exists, he feels that the world of physical objects is the most important world when considering reality. He considers this world to be most important because physical objects have more impact on our lives and most affect our ability to fulfill our ends. So, when we discuss James and his ideas on a pragmatic reality, we are focusing on the reality of physical objects. .
James" ideas on pragmatic reality also seem to take into account two major sides. Side one would include an individual's interests, values, and concerns, and side two would include an individual's experiences. James thinks that an individual creates his own reality by sorting through his interests, values, and concerns and then relating his experiences to those factors in a way that will be satisfying to him. This process will result in an individuals own reality, and not any "absolute" reality. What is real needs to be understood, and if one can not understand something, then it is not reality to that person. Therefore, each individual's perception of physical objects will result in an individual sense of reality for each individual based on the perception of the same group of physical objects. .
James" metaphysical conception of reality is based on the idea that there are many ways that one can view something, and once again it is up to the individual to decide which way the thing will be perceived. The idea here is not to argue about which point of view is the correct one, but it is to see which point of view is more appropriate given the purposes the individual has.