The expected utility hypothesis is one of the building blocks of classical economic theory and founded on Savage’s Sure-Thing Principle. It has been put forward, e.g. by situations such as the Allais and Ellsberg paradoxes, that real-life situations can violate Savage’s Sure-Thing Principle and hence also expected utility. We analyze how this violation is connected to the presence of the ‘disju...

The dual-self model supposes that decision-making involves a conflict between the desire for immediate and safe gratification on the one hand, and riskier long term benefits on the other. This conflict is resolved through a decision criterion that puts weights on both desires. A key element of the model is that this weighting is endogenous, and that changes in constraints that have the same eff...

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 ...

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 ...

Tuberculosis of the tonsils is by no means a common condition, Mullin (1923), for example, in analysing 400 tonsillectomies found only 4.25 per cent cases of tuberculous tonsils. The present study is based on 2,477 tonsillectomies in the Madras General Hospital. This series covers a period of five years from January 1928 to December 1932. We, however, feel that this investigation is incomplete ...

We derive a simplified version of the model of Fudenberg and Levine [2006, 2011] and show how this approximate model is useful in explaining choice under risk. We show that in the simple case of three outcomes, the model can generate indifference curves that “fan out” in the Marshack-Machina triangle, and thus can explain the well-known Allais and common ratio paradoxes that models such as pros...