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Biological correlates of the Allais paradox - updated

Author

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  • Da Silva, Sergio
  • Baldo, Dinora
  • Matsushita, Raul

Abstract

We conducted a questionnaire study with student subjects to look for explicit correlations between selected biological characteristics of the subjects and manifestation of the Allais paradox in the pattern of their choices between sets of two pairs of risky prospects. We found that particular characteristics, such as gender, menstrual cycle, mother’s age at delivery, parenthood, second- to fourth-digit ratio, perceived negative life events, and emotional state, can be related to the paradox. Women,particularly when not menstruating, are less susceptible to the paradox. Those born to not-too-young mothers are also less prone to the paradox. The same holds true for men who have fathered children and had been exposed to high levels of prenatal testosterone, people who had experienced many negative life events, and those who were anxious, excited, aroused, happy, active, or fresh at the time of the experiment. Further, left-handers and atheists may be less inclined to display the paradox.

Suggested Citation

  • Da Silva, Sergio & Baldo, Dinora & Matsushita, Raul, 2011. "Biological correlates of the Allais paradox - updated," MPRA Paper 32747, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:32747
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    File URL: https://mpra.ub.uni-muenchen.de/32747/1/MPRA_paper_32747.pdf
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    References listed on IDEAS

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    Cited by:

    1. Andreas C. Drichoutis & Rodolfo M. Nayga, Jr., 2015. "Do Risk and Time Preferences Have Biological Roots?," Southern Economic Journal, Southern Economic Association, vol. 82(1), pages 235-256, July.

    More about this item

    Keywords

    Allais paradox; choice under risk; biological characteristics; experimental economics;

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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