Abstract
The primary motivation for the development of generalized theories of choice under uncertainty was the empirical observation of behavior inconsistent with the EU model. The most notable examples include the Allais problem, the common ratio effect, the coincidence of gambling and insurance, the Ellsberg problem and the phenomenon of preference reversal. It is therefore of interest to consider how well the RDEU model explains these various observations. Except for the Friedman-Savage problem, discussed in Chapter 8, all of these observations are based primarily on experimental studies.
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© 1993 Springer Science+Business Media Dordrecht
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Quiggin, J. (1993). RDEU and Experimental Evidence. In: Generalized Expected Utility Theory. Springer, Dordrecht. https://doi.org/10.1007/978-94-011-2182-8_10
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DOI: https://doi.org/10.1007/978-94-011-2182-8_10
Publisher Name: Springer, Dordrecht
Print ISBN: 978-94-010-4966-5
Online ISBN: 978-94-011-2182-8
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