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expected utility should decrease if errors are excluded. The present paper presents an experiment which investigates this …
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uncertainty. Viewed as a thought experiment, the Allais Horse Race allows for introspective assessment of Monotonicity …. Implementing it as an incentivized experiment, we find that the modal choice of subjects violates Monotonicity in a specific …
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effect. Relying on a simple experiment, we investigate which failure of these axioms is concomitant with the empirical …
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This paper complements evidence on the Allais paradox from advanced countries and educated people by a novel investigation in a poor rural area. The share of Allais-type behavior is indeed high and related to characteristics of “lacking ability”, such as poor education, unemployment, and...
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