Please note that the content of this book primarily consists of articles available from Wikipedia or other free sources online. The Allais paradox is a choice problem designed by Maurice Allais to show an inconsistency of actual observed choices with the predictions of expected utility theory. The Allais paradox arises when comparing participants' choices in two different experiments, each of which consists of a choice between two gambles, A and B. Various studies involving hypothetical and small monetary payoffs, and recently involving health outcomes have supported the assertion that when presented with a choice between 1A and 1B, most people would choose 1A. Likewise, when presented with a choice between 2A and 2B, most people would choose 2B. Allais further asserted that it was reasonable to choose 1A alone or 2B alone.

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