Testing between Alternative Models of Choice Under Uncertainty: Some Initial Results

Battalio, R. C., Kagel, J. H., and Jiranyakul, K., "Testing Between Alternative Models of Choice Under Uncertainty: Some Initial Results," Journal of Risk and Uncertainty, Vol. 3, No. 1, pp. 25-50, 1990

Posted: 6 Jun 2013

See all articles by Raymond C. Battalio

Raymond C. Battalio

Independent

John H. Kagel

Ohio State University (OSU) - Economics

Komain Jiranyakul

National Institute of Development Administration

Date Written: 1990

Abstract

Experiments have identified a number of well-known violations of expected utility theory, giving rise to alternative models of choice under uncertainty, all of which are able to explain these violations. In this article, predictions of several prominent rival formulations are examined. No single alternative consistently organizes choices. Among the more important inconsistencies, we identify conditions generating systematic fanning in of indifference curves in the unit probability triangle, and find risk-loving over a number of gambles with all positive payoffs, in cases where prospect theory predicts risk aversion.

Keywords: Allais violations, expected utility, experimental economics, choice under uncertainty

JEL Classification: C91, D81

Suggested Citation

Battalio, Raymond C. and Kagel, John H. and Jiranyakul, Komain, Testing between Alternative Models of Choice Under Uncertainty: Some Initial Results (1990). Battalio, R. C., Kagel, J. H., and Jiranyakul, K., "Testing Between Alternative Models of Choice Under Uncertainty: Some Initial Results," Journal of Risk and Uncertainty, Vol. 3, No. 1, pp. 25-50, 1990, Available at SSRN: https://ssrn.com/abstract=2275122

Raymond C. Battalio

Independent

John H. Kagel

Ohio State University (OSU) - Economics ( email )

1945 North High Street
Columbus, OH 43210-1172
United States

Komain Jiranyakul (Contact Author)

National Institute of Development Administration ( email )

118 Seri Thai Road
Bangkok, 10240
Thailand

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