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Expected Utility Hypotheses and the Allais Paradox

Contemporary Discussions of the Decisions under Uncertainty with Allais’ Rejoinder

  • Maurice Allais
  • Ole Hagen

Part of the Theory and Decision Library book series (TDLU, volume 21)

Table of contents

  1. Front Matter
    Pages i-vii
  2. Editorial Introduction

    1. Front Matter
      Pages 1-11
    2. Ole Hagen
      Pages 13-24
  3. The 1952 Allais Theory of Choice Involving Risk

  4. The Neo-Bernoullian Position Versus the 1952 Allais Theory

    1. Front Matter
      Pages 147-147
    2. Bruno de Finetti
      Pages 161-161
    3. Oskar Morgenstern
      Pages 175-183
    4. Yakov Amihud
      Pages 185-190
  5. Contemporary Views on the NEO-Bernoullian Theory and the Allais Paradox

    1. Front Matter
      Pages 191-191
    2. Karl Borch
      Pages 193-201
    3. Richard M. Cyert, Morris H. Degroot
      Pages 223-241
    4. Peter C. Fishburn
      Pages 243-257
    5. Samuel Gorovitz
      Pages 259-270
    6. Werner Leinfellner, Edward Booth
      Pages 303-332
    7. Kenneth R. MacCrimmon, Stig Larsson
      Pages 333-409
  6. Allais’ Rejoinder: Theory and Empirical Evidence

    1. Front Matter
      Pages 435-435
  7. Back Matter
    Pages 683-715

About this book

Introduction

Utility theory or, value theory in general, is certainly the cornerstone of decision theory, game theory, microecon~mics, and all social and political theories which deal with public decisions. Recently the American School of utility, founded by von N eumann­ Morgenstern, encountered a far-going criticism by the French School of utility represented by its founder Allais. The whole basis of the theory of decisions involving risk has been shaken and put into question. Consequently, basic research in the fundamentals of utility and value theory evolved into a crisis. Like any crisis in basic research, and this one was not an exception, it was very fruitful. One may simply say: Allais versus von Neumann-Morgenstern, or the French School of utility versus the American School, became one of the battlefields of scientific development which proved to be a most creative source of new advances and new developments in all those sciences which are based on evaluation of utilities.

Keywords

basic research crisis criticism decision theory development evaluation game theory nature research school

Editors and affiliations

  • Maurice Allais
    • 1
  • Ole Hagen
    • 2
  1. 1.Centre d’Analyse Economique, Ecole Nationale Supérieure des Mines de ParisCentre National de la Recherche ScientifiqueFrance
  2. 2.Bedriftsoekonomisk InstituttOslo Institute of Business AdministrationNorway

Bibliographic information

  • DOI https://doi.org/10.1007/978-94-015-7629-1
  • Copyright Information Springer Science+Business Media B.V. 1979
  • Publisher Name Springer, Dordrecht
  • eBook Packages Springer Book Archive
  • Print ISBN 978-90-481-8354-8
  • Online ISBN 978-94-015-7629-1
  • Buy this book on publisher's site