Allais pdx

in the experimentation on behavioral economic reactions, individuals are presented with relatively simple decisions. In a first scenario of the Allais paradox scheme, the experimentation is based on asking to ordinary people to choose between two options:

Option A: receive 1 million in all safety; that is, with a probability of 100%.

Option B: Receive $ 0 with a probability of 1%, or 1 million with a probability of 89%, or 5 million with a probability of 10%.

Experimental results show that given the previous decision scenario, the bulk of the individuals opts for Option A, which violates the principles of utility theory.

Then, in a second scenario, individuals are asked to decide between:

Option A: Obtain 1million with probability of 11%.

Option B: Get 5 million with probability of 10%.