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

Autor:	Steven M. Shechter
Rok vydání:	2020
Předmět:	Reduction (recursion theory) Axiom independence Economics Allais paradox Mathematical economics Axiom Expected utility hypothesis
Zdroj:	SSRN Electronic Journal.
ISSN:	1556-5068
DOI:	10.2139/ssrn.3521572
Popis:	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.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::9ebb1270c1cc28093ef2d4363c90df5b https://doi.org/10.2139/ssrn.3521572 Zobrazit plný text záznamu