"Preference Reversal" and the Theory of Choice Under Risk

Edi Karni and Zvi Safra

No 275382, Foerder Institute for Economic Research Working Papers from Tel-Aviv University > Foerder Institute for Economic Research

Abstract: The paper shows that: (1) The preference reversal phenomenon is consistent with transitive preferences and constitutes a violation of the independence axiom. (2) The preference reversal phenomenon is accounted for by the interaction between the experimental design and respondents preferences and there is no experiment which can overcome this difficulty.

Keywords: Financial; Economics (search for similar items in EconPapers)
Pages: 33
Date: 1984-09
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:isfiwp:275382

DOI: 10.22004/ag.econ.275382

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