Abstract
Paradox has been an instrument to challenge the traditional expected utility theory. Paradox arises from the inconsistency between the empirical or experimental results and the theoretical deductions. In the expected utility theory field, there are many paradoxes or effects showing behaviors that are contradictory to the “theoretical” ones. Many studies questioned the validity of the expected utility theory by means of these paradoxes; while many others disqualified the expected utility theory as a descriptive model for human decision making behaviors. Among these paradoxes or effects, the Allais Paradox raised by Allais in 1953 is the most famous one.
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