Imprecision as an account of violations of independence and betweenness
Butler, D.J. and Loomes, G. (2011) Imprecision as an account of violations of independence and betweenness. Journal of Economic Behavior & Organization, 80 (3). pp. 511-522.
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In an earlier paper we put forward a model of imprecise preferences which accounted for various forms of preference reversal. In this paper we show that the same model can also explain the best-known violations of expected utility theory's axioms of independence and betweenness. It appears that a simple model of imprecise preferences can account for a broader range of anomalies than many of the more elaborate alternative theories developed to date.
|Publication Type:||Journal Article|
|Murdoch Affiliation:||Murdoch Business School|
|Copyright:||© 2011 Elsevier B.V.|
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