Implications of salience theory: Does the independence axiom always hold under uncertainty?

So far, "salience theory of choice under risk" has been mainly applied to situations of risk rather than to those of uncertainty. In this paper, we show that salience theory provides the prediction that Allais paradoxes should never occur in the context of uncertainty. A finding which contra-dicts the scarce evidence existing up to now, and which indicates that further research on the topic is necessary.

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Year of publication:	2018
Authors:	Ostermair, Christoph
Publisher:	Neubiberg : Universität der Bundeswehr München, Fachgruppe für Volkswirtschaftslehre
Subject:	Models of decision-making under risk and uncertainty \| Allais paradox \| Independence axiom \| Salience theory

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Series:	Volkswirtschaftliche Diskussionsbeiträge ; 2018,2
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	103926283X [GVK] hdl:10419/184730 [Handle] RePEc:zbw:ubwwpe:20182 [RePEc]
Classification:	D81 - Criteria for Decision-Making under Risk and Uncertainty
Source:	EconStor

Persistent link: https://www.econbiz.de/10011927079