Deconstructing the Allais Paradox : The Reduction of Compound Lotteries vs. the Independence Axiom

The literature typically attributes the Allais Paradox to a violation of the Independence Axiom. We present experimental data showing that violations of the Reduction of Compound Lotteries Axiom are significantly more problematic, and our findings are robust to both choice and pricing tasks. We discuss the implications of our findings for various decision-analytic frameworks

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Year of publication:	2020
Authors:	Shechter, Steven
Publisher:	[2020]: [S.l.] : SSRN
Subject:	Nutzen \| Utility \| Entscheidung \| Decision \| Spieltheorie \| Game theory

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Extent:	1 Online-Ressource (32 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments January 17, 2020 erstellt
Other identifiers:	10.2139/ssrn.3521572 [DOI]
Classification:	D11 - Consumer Economics: Theory ; D81 - Criteria for Decision-Making under Risk and Uncertainty
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012843741