Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/184730
Authors: 
Ostermair, Christoph
Year of Publication: 
2018
Series/Report no.: 
Volkswirtschaftliche Diskussionsbeiträge 2018,2
Abstract: 
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.
Subjects: 
Models of decision-making under risk and uncertainty
Allais paradox
Independence axiom
Salience theory
JEL: 
D81
Document Type: 
Working Paper

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