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

<p dir="ltr">This paper proposes that there is a set of behavioral deviations from standard rational choices that differs from the rest of the deviations. This set is characterized by anxiety-based choices that are truly non-rational, whereas the rest consists of deviations that are...

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Main Author: Elias L. Khalil (20518877) (author)
Published: 2025
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author Elias L. Khalil (20518877)
author_facet Elias L. Khalil (20518877)
author_role author
dc.creator.none.fl_str_mv Elias L. Khalil (20518877)
dc.date.none.fl_str_mv 2025-07-31T03:00:00Z
dc.identifier.none.fl_str_mv 10.1057/s41599-025-05552-x
dc.relation.none.fl_str_mv https://figshare.com/articles/peer_review/Anxiety_and_rationality_Allais_paradox_procrastination_Keynesian_expectations_and_other_anxiety-based_deviations_from_rationality/29716748
dc.rights.none.fl_str_mv CC BY 4.0
info:eu-repo/semantics/openAccess
dc.subject.none.fl_str_mv Economics
Applied economics
Human society
Sociology
Philosophy and religious studies
Philosophy
Psychology
Cognitive and computational psychology
Social and personality psychology
Addictions
Hot Hand Fallacy
Gambler's Fallacy
Leadership Awe
Ellsberg Paradox
Deliberate Ignorance
dc.title.none.fl_str_mv Anxiety and rationality: Allais paradox, procrastination, Keynesian expectations, and other anxiety-based deviations from rationality
dc.type.none.fl_str_mv Text
Peer review
info:eu-repo/semantics/publishedVersion
text
description <p dir="ltr">This paper proposes that there is a set of behavioral deviations from standard rational choices that differs from the rest of the deviations. This set is characterized by anxiety-based choices that are truly non-rational, whereas the rest consists of deviations that are actually rational once we take into consideration the role of reference points. This paper registers that the behavioral sciences literature conflates anxiety-based deviations with anxiety-free deviations. This conflation is probably the outcome of this literature’s cognitivist framework, which ignores the upheavals of the self. Anxiety is rather a manifestation of the upheavals of the self, where the self is inflicted by conflicting passions, apprehensions, and everyday difficulties in making decisions. Such upheavals undermine the formation of coherent preferences, which is guaranteed by the completeness axiom. This paper identifies a few anxiety-based deviations: the Allais paradox, procrastination, addictions, Keynesian expectations, the hot hand fallacy, the gambler’s fallacy, leadership awe, the Ellsberg paradox, and deliberate ignorance. Nevertheless, this set of anxiety-based deviations leaves out a heap of anxiety-free deviations—such as succumbing to temptations, the demand for equity that informs the ultimatum game, heuristics that sometimes lead to biases, the endowment effect, etc. The contribution of this paper lies in proposing a criterion, namely, the role of reference points, that can help us delineate anxiety-based from anxiety-free deviations from rationality.</p><h2>Other Information</h2><p dir="ltr">Published in: Humanities and Social Sciences Communications<br>License: <a href="https://creativecommons.org/licenses/by/4.0" target="_blank">https://creativecommons.org/licenses/by/4.0</a><br>See article on publisher's website: <a href="https://doi.org/10.1057/s41599-025-05552-x" target="_blank">https://doi.org/10.1057/s41599-025-05552-x</a></p>
eu_rights_str_mv openAccess
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identifier_str_mv 10.1057/s41599-025-05552-x
network_acronym_str Manara2
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oai_identifier_str oai:figshare.com:article/29716748
publishDate 2025
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spelling Anxiety and rationality: Allais paradox, procrastination, Keynesian expectations, and other anxiety-based deviations from rationalityElias L. Khalil (20518877)EconomicsApplied economicsHuman societySociologyPhilosophy and religious studiesPhilosophyPsychologyCognitive and computational psychologySocial and personality psychologyAddictionsHot Hand FallacyGambler's FallacyLeadership AweEllsberg ParadoxDeliberate Ignorance<p dir="ltr">This paper proposes that there is a set of behavioral deviations from standard rational choices that differs from the rest of the deviations. This set is characterized by anxiety-based choices that are truly non-rational, whereas the rest consists of deviations that are actually rational once we take into consideration the role of reference points. This paper registers that the behavioral sciences literature conflates anxiety-based deviations with anxiety-free deviations. This conflation is probably the outcome of this literature’s cognitivist framework, which ignores the upheavals of the self. Anxiety is rather a manifestation of the upheavals of the self, where the self is inflicted by conflicting passions, apprehensions, and everyday difficulties in making decisions. Such upheavals undermine the formation of coherent preferences, which is guaranteed by the completeness axiom. This paper identifies a few anxiety-based deviations: the Allais paradox, procrastination, addictions, Keynesian expectations, the hot hand fallacy, the gambler’s fallacy, leadership awe, the Ellsberg paradox, and deliberate ignorance. Nevertheless, this set of anxiety-based deviations leaves out a heap of anxiety-free deviations—such as succumbing to temptations, the demand for equity that informs the ultimatum game, heuristics that sometimes lead to biases, the endowment effect, etc. The contribution of this paper lies in proposing a criterion, namely, the role of reference points, that can help us delineate anxiety-based from anxiety-free deviations from rationality.</p><h2>Other Information</h2><p dir="ltr">Published in: Humanities and Social Sciences Communications<br>License: <a href="https://creativecommons.org/licenses/by/4.0" target="_blank">https://creativecommons.org/licenses/by/4.0</a><br>See article on publisher's website: <a href="https://doi.org/10.1057/s41599-025-05552-x" target="_blank">https://doi.org/10.1057/s41599-025-05552-x</a></p>2025-07-31T03:00:00ZTextPeer reviewinfo:eu-repo/semantics/publishedVersiontext10.1057/s41599-025-05552-xhttps://figshare.com/articles/peer_review/Anxiety_and_rationality_Allais_paradox_procrastination_Keynesian_expectations_and_other_anxiety-based_deviations_from_rationality/29716748CC BY 4.0info:eu-repo/semantics/openAccessoai:figshare.com:article/297167482025-07-31T03:00:00Z
spellingShingle Anxiety and rationality: Allais paradox, procrastination, Keynesian expectations, and other anxiety-based deviations from rationality
Elias L. Khalil (20518877)
Economics
Applied economics
Human society
Sociology
Philosophy and religious studies
Philosophy
Psychology
Cognitive and computational psychology
Social and personality psychology
Addictions
Hot Hand Fallacy
Gambler's Fallacy
Leadership Awe
Ellsberg Paradox
Deliberate Ignorance
status_str publishedVersion
title Anxiety and rationality: Allais paradox, procrastination, Keynesian expectations, and other anxiety-based deviations from rationality
title_full Anxiety and rationality: Allais paradox, procrastination, Keynesian expectations, and other anxiety-based deviations from rationality
title_fullStr Anxiety and rationality: Allais paradox, procrastination, Keynesian expectations, and other anxiety-based deviations from rationality
title_full_unstemmed Anxiety and rationality: Allais paradox, procrastination, Keynesian expectations, and other anxiety-based deviations from rationality
title_short Anxiety and rationality: Allais paradox, procrastination, Keynesian expectations, and other anxiety-based deviations from rationality
title_sort Anxiety and rationality: Allais paradox, procrastination, Keynesian expectations, and other anxiety-based deviations from rationality
topic Economics
Applied economics
Human society
Sociology
Philosophy and religious studies
Philosophy
Psychology
Cognitive and computational psychology
Social and personality psychology
Addictions
Hot Hand Fallacy
Gambler's Fallacy
Leadership Awe
Ellsberg Paradox
Deliberate Ignorance