The reverse Allais paradox

The results of a new experiment show that the Allais paradox (or, more generally, the common consequence effect) gets reversed, i.e. fanning-in choice patterns significantly outnumber fanning-out choice patterns. Revealed indifference curves fan in along the horizontal axis and hypotenuse of the Marschak-Machina probability triangle. No significant asymmetry between fanning-in and fanning-out choice patterns is observed along the vertical axis of the probability triangle.

► Experimental evidence of the reversed Allais paradox. ► Fanning-in choice patterns significantly outnumber fanning-out choice patterns. ► Indifference curves fan in along the horizontal axis of the probability triangle. ► Indifference curves fan in along the hypotenuse of the probability triangle. ► No significant asymmetry between fanning-in and fanning-out along the vertical axis.