Multidimensional Choice and Preference Reversals

Jose Encarnacion

No 198401, UP School of Economics Discussion Papers from University of the Philippines School of Economics

Abstract: Results of various experiments reported in recent literature have shown repeated violations of expected utility theory. In the model of this paper, expected utility is only first of three criteria that determine choices under uncertainly--the second criterion is the probability of doing better than or at least maintaining the status quo, and the third is the maximum possible gain. Choice being thus multidimensional, the observed violations get accounted for: the Allais and Ellsberg paradoxes, probabilistic insurance, risk seeking with negative prospects, translation effects, preference reversals, and Tversky intransitivities.

Date: 1984-01
References: Add references at CitEc
Citations:

Published as UPSE Discussion Paper No. DP 1984-01, January 1984

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:phs:dpaper:198401

Access Statistics for this paper

More papers in UP School of Economics Discussion Papers from University of the Philippines School of Economics Contact information at EDIRC.
Bibliographic data for series maintained by RT Campos ().