Ending the myth of the St Petersburg Paradox
South African Journal of Economic and Management Sciences
| Field | Value | |
| Title | Ending the myth of the St Petersburg Paradox | |
| Creator | Vivian, Robert | |
| Description | Nicolas Bernoulli suggested the St Petersburg game, nearly 300 years ago, which is widely believed to produce a paradox in decision theory. This belief stems from a long standing mathematical error in the original calculation of the expected value of the game. This article argues that, in addition to the mathematical error, there are also methodological considerations which gave rise to the paradox. This article explains these considerations and why because of the modern computer, the same considerations, when correctly applied, also demonstrate that no paradox exists. Because of the longstanding belief that a paradox exists it is unlikely the mere mathematical correction will end the myth. The article explains why it is the methodological correction which will dispel the myth. | |
| Publisher | AOSIS Publishing | |
| Date | 2013-09-02 | |
| Identifier | 10.4102/sajems.v16i3.424 | |
| Source | South African Journal of Economic and Management Sciences; Vol 16, No 3 (2013); 347-362 2222-3436 1015-8812 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://sajems.org/index.php/sajems/article/view/424/276
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