Allais's paradox

Leonard Savage

pp. 357-360

in: Horacio Arló-Costa, Vincent F. Hendricks, Johan van Benthem (eds), Readings in formal epistemology, Berlin, Springer, 2016

Abstract

Introspection about certain hypothetical decision situations suggests that the sure-thing principle and, with it, the theory of utility are normatively unsatisfactory. Consider an example based on two decision situations each involving two gambles.