A Resolution of St. Petersburg Paradox

• Tác giả: V. I Yukalov
• Ngôn ngữ: eng
• Ký hiệu phân loại: 947.453 Eastern Europe Russia
• Thông tin xuất bản: 2021
• Bộ sưu tập: Metadata
• ID: 168276

Tóm tắt

The St. Petersburg paradox is the oldest paradox in decision theory and has played a pivotal role in the introduction of increasing concave utility functions embodying risk aversion and decreasing marginal utility of gains. All attempts to resolve it have considered some variants of the original set-up, but the original paradox has remained unresolved, while the proposed variants have introduced new complications and problems. Here a rigorous mathematical resolution of the St. Petersburg paradox is suggested based on a probabilistic approach to decision theory.