Two of the most well known regularities observed in preferences under risk and uncertainty are ambiguity aversion and the Allais paradox. We study the behavior of an agent who can display both tendencies simultaneously. We introduce a novel notion of preference for hedging that applies to both objective lotteries and uncertain acts. We show that this axiom, together with other standard ones, is...

During 36 days the motion of two pendulums, which were restarted every hour, was continuously recorded. 869 “runs” thus made, providing each time precession during run, as well other parameters motion. Spectral analysis and ellipticity revealed a lunar component 24 h 50 min, can only result from an astral action, through mechanisms yet to be discovered. Indeed, carried out influence all classic...

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...

After more than a century since its birth, Quantum Theory still eludes our under1 standing. If asked to describe it, we have to resort to abstract and ad hoc principles about 2 complex Hilbert spaces. How is it possible that a fundamental physical theory cannot be de3 scribed using the ordinary language of Physics? Here we offer a contribution to the problem, 4 providing a short non-technical p...

We show the incompatibility between the existence of stationary subgame perfect equilibria in Shaked’s game of cycling offers with exogenous breakdown and the behavior of players consistent with the Allais Paradox. Thus, the strategic support of the equally marginally bold solution presented in Burgos, Grant, and Kajii [2002. Games Econ. Behav. 38, 28–51] does not go beyond the two-person case....

Neuroeconomics is examined critically using data on the response times of subjects who were asked to express their preferences in the context of the Allais Paradox. Different patterns of choice are found among the fast and slow responders. This suggests that we try to identify types of economic agents by the time they take to make their choices. Nevertheless, it is argued that it is far from cl...