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A solution to the St Petersburg paradox
Author(s) -
Treisman Michel
Publication year - 1983
Publication title -
british journal of mathematical and statistical psychology
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.157
H-Index - 51
eISSN - 2044-8317
pISSN - 0007-1102
DOI - 10.1111/j.2044-8317.1983.tb01128.x
Subject(s) - st petersburg , value (mathematics) , mathematical economics , mathematics , econometrics , economics , statistics , russian federation , economic policy
‘The St Petersburg paradox’ refers to a gamble which can be shown to have an infinite expected value but which gamblers are normally loth to pay more than a small sum to play. A number of explanations have been put forward for this, which are briefly considered, and an alternative is offered.