The reverse Allais paradox

Pavlo R. Blavatskyy

Economics Letters, 2013, vol. 119, issue 1, 60-64

Abstract: The results of a new experiment show that the Allais paradox (or, more generally, the common consequence effect) gets reversed, i.e. fanning-in choice patterns significantly outnumber fanning-out choice patterns. Revealed indifference curves fan in along the horizontal axis and hypotenuse of the Marschak–Machina probability triangle. No significant asymmetry between fanning-in and fanning-out choice patterns is observed along the vertical axis of the probability triangle.

Keywords: The Allais paradox; The common consequence effect; Expected utility theory; Fanning-out; Fanning-in; Betweenness (search for similar items in EconPapers)
JEL-codes: C91 D81 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:119:y:2013:i:1:p:60-64

DOI: 10.1016/j.econlet.2013.01.009

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