Paola, Manzini; Marco, Mariotti - In: The B.E. Journal of Theoretical Economics 4 (2004) 1, pp. 1-17
We propose a new theory of choice between lotteries, which combines an 'economic' view of decision making - based on a rational, though incomplete, ordering - with a 'psychological' view - based on heuristics. This theory can explain observed violations of EU theory, namely all cyclical patterns...