Degree Year

1992

Document Type

Thesis

Degree Name

Bachelor of Arts

Department

Economics

Advisor(s)

Robert Piron

Keywords

Preference, Reversal, Field, Independence, Axiom, Mixture, Replacement, Separability, Gambling

Abstract

In his article "Dynamic Consistency and Non-Expected Utility Models of Choice Under Uncertainty," (Journal of Economic Literature, Dec. 1989), Mark Machina asserted that preference reversal (PR) is caused by a violation of the independence axiom. Amos Tversky, Paul Slovic, and Daniel Kahneman submit, however, that "Observed preference reversal ... cannot be adequately explained by violations of independence...." This paper tests these claims by breaking the independence axiom into its two component parts: mixture and replacement separability.

Included in

Economics Commons

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