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Reply to Maher

Patrick Maher (1989) correctly reports my claim that it is an advantage of the decision theory I have proposed over both Bayesian decision theory and non-Bayesian approaches, which allow for violations of the "independence" postulate, that it "accommodates" choices in the Allais and Ellsberg problems, which allegedly deviate from the requirement of the independence or sure-thing postulates. He then offers data that, he claims, show that the advantage is illusory. Maher's brief conclusion summarizes admirably his line of argument and may, therefore, serve as a starting point for my remarks. Maher writes: