Savage’s response to Allais as Broomean reasoning

Allais paradox pdf

Not Noble Savages After All: Limits to Early Altruism

Many scholars draw on evidence from evolutionary biology, behavioral economics, and infant research to argue that humans are “noble savages,” endowed with indiscriminate kindness. We believe this is mistaken. While there is evidence for an early-emerging moral sense—even infants recognize and favor instances of fairness and kindness among third parties—altruistic behaviors are selective from th...

Objective Lotteries as Ambiguous Objects: Allais, Ellsberg, and Hedging∗

We derive axiomatically a model in which the Decision Maker can exhibit simultaneously both the Allais and the Ellsberg paradoxes in the standard setup of Anscombe and Aumann (1963). Using the notion of ‘subjective’, or ‘outcome’ mixture of Ghirardato et al. (2003), we define a novel form of hedging for objective lotteries, and introduce a novel axiom which is a generalized form of preferences ...

Allais , Stability , and Liapunov Theory

To make a discovery is to achieve one of the closest approximations to a property right that the scientific career affords. Professional prestige is often closely associated with these acquisitions. Small wonder, then, that acrimonious disputes about priority and independence in discovery have often marred the normally placid tenor of scientific communication. Even less wonder that many histori...

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...