Manzini, Paola; Mariotti, Marco - In: The B.E. Journal of Theoretical Economics 4 (2004) 1
We propose a new theory of choice between lotteries, which combines an 'economic' view of decision making - based on a … rational, though incomplete, ordering - with a 'psychological' view - based on heuristics. This theory can explain observed … violations of EU theory, namely all cyclical patterns of choice as well as violations of independence. …