ABSTRACT

The principle of dominance is a cornerstone of modern decision theory, both as a normative prescription for rational choice and as a basis for explaining behaviour. Although a few of the generalizations of the expected utility hypothesis allow for violations of dominance,1 the focus of this literature has not been on dominance itself. Even in otherwise comprehensive surveys of the literature (such as Machina, 1982), violations of dominance do not attract much more than a footnote. Moreover, even less is known concerning actual cases of violations of dominance away from the environment of experimental laboratories.