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Different Frames for the Independence Axiom: An Experimental Investigation in Individual Decision Making under Risk

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Author Info
Bernasconi, Michele

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Abstract

This article classifies three classes of generalized.expected utility preferences according to the justifications for the independence axiom and for the reduction principle that they subscribe to or reject. The results of an experiment designed to test the three classes show that some substantial proportions of responses are consistent with each class. In view of this finding, it is suggested that the different theories belonging to the three classes should be considered complementary, rather than alternative, in order to explain individual behavior under risk. Copyright 1992 by Kluwer Academic Publishers

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Publisher Info
Article provided by Springer in its journal Journal of Risk and Uncertainty.

Volume (Year): 5 (1992)
Issue (Month): 2 (May)
Pages: 159-74
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Handle: RePEc:kap:jrisku:v:5:y:1992:i:2:p:159-74

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Web page: http://www.springerlink.com/link.asp?id=100299

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  1. Ali Ahmed & Göran Skogh, 2006. "Choices at various levels of uncertainty: An experimental test of the restated diversification theorem," Journal of Risk and Uncertainty, Springer, vol. 33(3), pages 183-196, December. [Downloadable!] (restricted)
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