The St. Petersburg paradox with state dependent linear utility functions for monetary returns. A note

• Autorzy: Lahiri Somdeb

Identyfikatory

DOI

10.7494/manage.2024.25.2.133

• Języki publikacji: EN

Abstrakty

EN

In the experiment underlying the St. Petersburg paradox, we use state-dependent linear utility functions for money with a countably infinite set of states of nature to show that a potential participant will be willing to pay no more than a finite sum of money to participate in the experiment.

Słowa kluczowe

EN

St. Petersburg paradox; countably infinite states of nature; state-dependent linear utility; function of money

• Wydawca: Wydawnictwa AGH
• Czasopismo: Managerial Economics
• Rocznik: 2024
• Tom: Vol. 25, no. 2
• Strony: 133--140
• Opis fizyczny: Bibliogr. 10 poz.

Twórcy

autor

Lahiri Somdeb

• PDEU, India

Bibliografia

• [1] Biswas, T. (1997) Decision-Making Under Uncertainty, London: Macmillan Press Ltd.
• [2] Feller, W. (1968) An Introduction to Probability Theory and Applications, vol. I and II, Wiley.
• [3] Gasparian, M., Kiseleva, I., Korneev, D., Lebedev, S. and Lebedev, V. (2018) ‘Role of the St. Petersburg Paradox in Decision Making’, International Journal of Engineering and Technology, vol. 7, No 4, pp. 186–190.
• [4] Lahiri, S. (2023) ‘Understanding Ramsey-de Finetti Probabilities and the St. Petersburg Paradox’, Economics and Management Information, vol. 2, No 2, pp. 1–4.
• [5] Lahiri, S. (2024) ‘State-Dependent Linear Utility Functions for Monetary Returns’, [Online], Available: https://engrxiv.org/preprint/view/3858/version/5328 [11 Oct 2024].
• [6] Peterson, M. (2023) ‘The St. Petersburg Paradox’, in Zalta, E.N. and Nodelman, U. (eds), Stanford Encyclopedia of Philosophy Archive, [Online], Available: https://plato.stanford.edu/archives/fall2023/entries/paradox-stpetersburg/ [11 Oct 2024].
• [7] Samuelson, P.A. (1960) ‘The St. Petersburg Paradox as a Divergent Double Limit’, International Economic Review, vol. 1, No 1, pp. 31–37.
• [8] Swinburne, A.C. (n.d.) Garden of Prosperine, [Online], Available: https://www.poetryfoundation.org/poems/45288/the-garden-of-proserpine [11 Oct 2024].
• [9] Wikipedia (n.d.) St. Petersburg paradox, [Online], Available: https://en.wikipedia.org/wiki/St._Petersburg_paradox [11 Oct 2024].
• [10] Vivian, R.W. (2013) ‘Ending the Myth of the St. Petersburg Paradox’, South African Journal of Economics and Management Science (NS), vol. 16, No 3, pp. 347–364.

Uwagi

Opracowanie rekordu ze środków MNiSW, umowa nr SONP/SP/546092/2022 w ramach programu "Społeczna odpowiedzialność nauki" - moduł: Popularyzacja nauki i promocja sportu (2024)