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The allais paradox: A comment
Author(s) -
Borch Karl
Publication year - 1968
Publication title -
behavioral science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.371
H-Index - 45
eISSN - 1099-1743
pISSN - 0005-7940
DOI - 10.1002/bs.3830130607
Subject(s) - mathematical economics , epistemology , positive economics , psychology , economics , philosophy
In a recent paper D. G. Morrison discusses the well known paradox of Allais, according to which people usually give inconsistent answers when asked how they will make choices in different situations involving risk. The author argues that the questions usually are posed so that they contain a trap. He shows that by a reformulation of the question one should expect to get consistent answers.