Does size matter? The Allais paradox and preference reversals with varying outcome magnitudes

Allais paradox pdf

Learning in the Allais paradox

Whereas both the Allais paradox, the first empirical challenge of the classical rationality assumptions, and learning have been the focus of many experimental investigations, no experimental study exists today into learning in the pure context of the Allais paradox. This paper presents such a study. We find that choices converge to expected utility maximization if subjects are given the opportu...

Self Control, Risk Aversion, and the Allais Paradox

This paper develops a dual-self model that is compatible with modern dynamic macroeconomic theory and evidence, and shows how it leads to a wide range of behavioral anomalies concerning risk, including the Allais paradox. We calibrate the model to obtain a quantitative fit, by extending the simpler “nightclub” model of Fudenberg and Levine [2006] by introducing consumption commitment. We find t...

Does size matter ?

Body size is a key parameter influencing demographic characteristics of fish populations as well as market value of landed catch. Yet in bioeconomic modelling body size is often an overlooked biological and economic parameter. Here we evaluate how sizedependent pricing influences optimal harvest strategies in a model parameterized for two pelagic fisheries, those targeting Atlantic herring (Clu...

COTS - Size Does Matter

Railways, like a lot of industries are becoming increasingly reliant on programmable technology for safety. The development of railway technology is however largely driven through market forces and, given the complexity and cost of developing and certifying safety-related systems, rail industry suppliers tend to accede to the needs of their bigger customers. Consequently the in-built functional...