Imprecision as an account of violations of independence and betweenness

In an earlier paper we put forward a model of imprecise preferences which accounted for various forms of preference reversal. In this paper we show that the same model can also explain the best-known violations of expected utility theory's axioms of independence and betweenness. It appears that a simple model of imprecise preferences can account for a broader range of anomalies than many of the more elaborate alternative theories developed to date.

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Year of publication:	2011
Authors:	Butler, David ; Loomes, Graham
Published in:	Journal of Economic Behavior & Organization. - Elsevier, ISSN 0167-2681. - Vol. 80.2011, 3, p. 511-522
Publisher:	Elsevier
Subject:	Imprecise preferences \| Independence \| Betweenness \| Experiment

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Type of publication:	Article
Classification:	C91 - Laboratory, Individual Behavior ; D81 - Criteria for Decision-Making under Risk and Uncertainty
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010573054