The Problem of Universals
Nominalism arose in reaction to the problem of universals, specifically accounting for the fact that some things are of the same type. For example, Fluffy and Kitzler are both cats, or, the fact that certain properties are repeatable, such as: the grass, the shirt, and Kermit the Frog are green. One wants to know in virtue of what are Fluffy and Kitzler both cats, and what makes the grass, the shirt, and Kermit green.
The realist answer is that all the green things are green in virtue of the existence of a universal; a single abstract thing that, in this case, is a part of all the green things. With respect to the color of the grass, the shirt and Kermit, one of their parts is identical. In this respect, the three parts are literally one. Greenness is repeatable because there is one thing that manifests itself wherever there are green things.
Nominalism denies the existence of universals. The motivation for this flows from several concerns, the first one being where they might exist. Plato famously held, on one interpretation, that there is a realm of abstract forms or universals apart from the physical world (see theory of the forms). Particular physical objects merely exemplify or instantiate the universal. But this raises the question: Where is this universal realm? One possibility is that it is outside of space and time. A view sympathetic with this possibility holds that, precisely because some form is immanent in several physical objects, it must also transcend each of those physical objects; in this way, the forms are "transcendant" only insofar as they are "immanent" in many physical objects. In other words, immanence implies transcendence; they are not opposed to one another. (Nor, on this view, would there be a separate "world" or "realm" of forms that is distinct from the physical world, thus shirking much of the worry about where to locate a "universal realm".) However, naturalists assert that nothing is outside of space and time. Some Neoplatonists, such as the pagan philosopher Plotinus and the philosopher Augustine, imply (anticipating conceptualism) that universals are contained within the mind of God. To complicate things, what is the nature of the instantiation or exemplification relation?
Conceptualists hold a position intermediate between nominalism and realism, saying that universals exist only within the mind and have no external or substantial reality.
Moderate realists hold that there is no realm in which universals exist, but rather universals are located in space and time wherever they are manifest. Now, recall that a universal, like greenness, is supposed to be a single thing. Nominalists consider it unusual that there could be a single thing that exists in multiple places simultaneously. The realist maintains that all the instances of greenness are held together by the exemplification relation, but this relation cannot be explained.
Finally, many philosophers prefer simpler ontologies populated with only the bare minimum of types of entities, or as W. V. Quine said "They have a taste for 'desert landscapes.'" They attempt to express everything that they want to explain without using universals such as "catness" or "chairness."
Read more about this topic: Nominalism
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