The paper by David M. Grether and Charles R. Plott explores the phenomenon of preference reversals in economic decision-making, which contradicts traditional preference theory. The authors review existing experimental work and present their own experiments designed to test the validity of these findings. They find that a significant proportion of subjects prefer a low-probability, high-reward lottery ($S$) over a high-probability, low-reward lottery ($P$) but place a higher value on the $P$ lottery. This behavior is inconsistent with standard economic theory, which suggests that individuals should place a higher reservation price on the object they prefer. The authors discuss various economic and psychological theories that could explain this phenomenon, including income effects, strategic responses, and information processing costs. Their experiments control for several economic explanations and replicate the preference reversal phenomenon, suggesting that it is not due to economic factors such as incentives or decision costs. The authors conclude that the preference reversal phenomenon remains unexplained by current economic theory and calls for further research to develop a more comprehensive theory of human choice behavior.The paper by David M. Grether and Charles R. Plott explores the phenomenon of preference reversals in economic decision-making, which contradicts traditional preference theory. The authors review existing experimental work and present their own experiments designed to test the validity of these findings. They find that a significant proportion of subjects prefer a low-probability, high-reward lottery ($S$) over a high-probability, low-reward lottery ($P$) but place a higher value on the $P$ lottery. This behavior is inconsistent with standard economic theory, which suggests that individuals should place a higher reservation price on the object they prefer. The authors discuss various economic and psychological theories that could explain this phenomenon, including income effects, strategic responses, and information processing costs. Their experiments control for several economic explanations and replicate the preference reversal phenomenon, suggesting that it is not due to economic factors such as incentives or decision costs. The authors conclude that the preference reversal phenomenon remains unexplained by current economic theory and calls for further research to develop a more comprehensive theory of human choice behavior.