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The Saint Petersburg Game: An Exposition of the Classical Treatment
Author(s) -
Ruckle William H.
Publication year - 1981
Publication title -
risk analysis
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.972
H-Index - 130
eISSN - 1539-6924
pISSN - 0272-4332
DOI - 10.1111/j.1539-6924.1981.tb01424.x
Subject(s) - exposition (narrative) , saint petersburg , measure (data warehouse) , test (biology) , epistemology , saint , psychology , computer science , sociology , philosophy , computer security , art , regional science , data mining , literature , paleontology , russian federation , biology
An early attempt to measure risk was the 1738 paper of Bernoulli in which he describes the well‐known Saint Petersburg paradox. Subsequent writers have considered this game to draw conclusions about the nature of risk or to test newly devised risk models. We analyze the paradox, evaluate various theories which have been advanced to resolve it, and briefly examine the implications of these theories on the wider area of risk analysis.