Question: Consider the Allais paradox described : an agent who prefers B over A (taking the sure thing), and C over D (taking the higher EMV)

Consider the Allais paradox described : an agent who prefers B over A (taking the sure thing), and C over D (taking the higher EMV) is not acting rationally, according to utility theory. Do you think this indicates a problem for the agent, a problem for the theory, or no problem at all? Explain.

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