Considering the Pasadena "Paradox"
AbstractNover and Hájek (2004) suggested a variant of the St Petersburg game which they dubbed the Pasadena game. They hold that their game ‘is more paradoxical than the St Petersburg game in several aspects’. The purpose of this article is to demonstrate theoretically and to validate by simulation, that their game does not lead to a paradox at all, let alone in the St Petersburg game sense. Their game does not produce inconsistencies in decision theory.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 5232.
Date of creation: Jun 2006
Date of revision: Jun 2006
Publication status: Published in South African Journal of Economic & Management Sciences NS9.2(2006): pp. 277-284
expected values; St Petersburg paradox; decision rules; simulation; harmonic series;
Find related papers by JEL classification:
- C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Vivian, Robert William, 2003. "Solving Daniel Bernoulli's St Petersburg Paradox: The Paradox which is not and never was," MPRA Paper 5233, University Library of Munich, Germany, revised 2003.
- Vivian, Robert William, 2008. "Considering the Harmonic Sequence "Paradox"," MPRA Paper 21216, University Library of Munich, Germany.
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