What is Allais paradox?
-
This question asked by Anonymous
Ask Your Question
The Allais paradox explain how risk tolerance changes across income. It explains why someone might choose to play the lottery (when they are poor) and buy insurance (when they are wealthy).
- Your Thoughts
- Was this helpful to you? (2 votes)
- Tags
- Related Content
Ask Dirk Now!
Students, got an econ question?
- Who's Dirk?
- More on the man, himself. Meet Dirk
- Econ Media Library
- Check out multimedia tools, videos and more in our Media Library

What People are saying...