Skip to main content

Search from vocabulary

Content language

Concept information

Preferred term

Allais paradox  

Definition

  • The Allais paradox is a paradox in risky choice first proposed by Maurice Allais in the 1950s to challenge the then-dominant view that humans are rational economic actors. According to expected utility theory, a widely used economic theory of choice, humans make decisions between options with uncertain outcomes by considering the probability and value of each possible outcome. [Source: Encyclopedia of the Mind; Allais Paradox]

Belongs to group

URI

https://concepts.sagepub.com/social-science/concept/Allais_paradox

Download this concept: