Anxiety and rationality: Allais paradox, procrastination, Keynesian expectations, and other anxiety-based deviations from rationality

This section reviews a few deviations from rational choice. It is conjectured that they arise from a common source, the state-of-apprehension:

Certainty effect (Allais paradox), fear of regret, and fear of missing out

Charpentier et al. (2017; see…