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The St. Petersburg Paradox

1 pointsby jpnalmost 5 years ago

1 comment

theamkalmost 5 years ago
Wikipedia has a much shorter summary [0], with a very useful note:<p>&gt; .... the expected value of the lottery only grows logarithmically with the resources of the casino. As a result, the expected value of the lottery, even when played against a casino with the largest resources realistically conceivable, is quite modest.<p>This then shows that if the max reward is limited to US GDP ($13.8 trillion), the expected value is $44.<p>This, for me, completely solves the paradox.<p>[0] <a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;St._Petersburg_paradox" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;St._Petersburg_paradox</a>