Blavatskyy Ortmann Panchenko (2020) Allais Paradox
- Blavatskyy, Pavlo (Montpellier Business School)
- Ortmann, Andreas (UNSW Business School)
- Panchenko, Valentyn (UNSW Business School)
AbstractAbstract The Allais Paradox, or the common‐consequence effect, is a well‐known behavioral regularity in individual decision making under risk. Data from 83 experiments reported in 30 studies reveal that the Allais Paradox is a fragile empirical finding. The Allais Paradox is likely to be observed in experiments with high hypothetical payoffs, the medium outcome being close to the highest outcome and when lotteries are presented as a probability distribution (not in a compound form). The Allais Paradox is likely to be reversed in experiments when the probability mass is equally split between the lowest and the highest outcome in risky lotteries.
1986-01-01 / 2017-12-31Time Period: Wed Jan 01 00:00:00 EST 1986--Sun Dec 31 00:00:00 EST 2017
Blavatskyy, Pavlo, Andreas Ortmann, and Valentyn Panchenko. “On the Experimental Robustness of the Allais Paradox.” American Economic Journal: Microeconomics, n.d.
Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2020-05-08