## Allais paradox Quick reference

### A Dictionary of Economics (5 ed.)

...Allais paradox An example of choice under uncertainty where the outcome for most experimental subjects violates the axioms of expected utility theory. In the first experiment subjects are requested to choose between winning £1 million for sure and a gamble in which the prizes are £1 million with probability 0.89, £5 million with probability 0.10, and nothing with probability 0.01. Most experimental subjects would choose the option of £1 million for sure. In the second experiment the choice is between two different gambles. For the first gamble the prizes are...

## Allais paradox Quick reference

### A Dictionary of Philosophy (3 ed.)

...is reversed. Although the paradox can be used to attack the sure thing principle , another approach is to use it to educate choices, so that if one genuinely prefers gamble 1 to gamble 2, one learns to reverse the initial feeling that gamble 4 is a better choice than gamble 3. http://www.sfb504.uni-mannheim.de/glossary/allais.htm An account of the paradox’s theoretical context, with links to related issues http://cepa.newschool.edu/het/essays/uncert/choiceref.htm A bibliography of scholarly articles on the paradox and related...

##
Allais paradox
*n.*
Quick reference

### A Dictionary of Psychology (4 ed.)

...) + .01 u ( 0 ) , a contradiction, showing that expected utility theory does not accurately describe human choice behaviour. See also revealed preference , risk aversion . Compare common ratio effect , Ellsberg paradox , modified Ellsberg paradox , St Petersburg paradox . [Named after the French economist Maurice (Félix Charles) Allais ( 1911–2010 ) who formulated it in 1953...

## Allais paradox

## Maurice Allais

## subjective expected utility theory

## risk aversion

## St Petersburg paradox

## Ellsberg paradox

## expected utility theory

## modified Ellsberg paradox

## common ratio effect

## paradox

## revealed preference

## sure-thing principle

## utility theory

## anomaly

## decision-making

## decision theory

##
paradox
*n.*
Quick reference

### A Dictionary of Psychology (4 ed.)

..., the liar paradox , or Grelling's paradox . The term is also used more loosely for any argument that yields a surprising conclusion, or even for a fact or phenomenon that seems surprising, but the latter is avoided in careful usage. See also Allais paradox , Aubert–Fleischl paradox , barber's paradox , Condorcet's paradox , duration estimation paradox , Ellsberg paradox , Fechner's paradox , Gödel's theorem , Goodman's paradox , melodic paradox , metalanguage , mirror reversal problem , modified Ellsberg paradox , Monty Hall problem , ...