Add to ORKGSummary.: Informal evidence suggests that individuals are willing to pay only a finite and, typically, very low price for a specific lottery that converges to an infinite payment with probability one. The established decision theories (expected value, expected utility theory, cumulative prospect theory) cannot satisfactorily explain this low willingness to pay. The presented paradox strengthens the original and the super St. Petersburg parado
Three main groups of results have been obtained: 1) The question is emphasized whether the pro...
A standard method to elicit certainty equivalents is the Becker-DeGroot-Marschak (BDM) procedure. We...
The St. Petersburg is one of the oldest violations of expected utility theory. Thus far, explanation...
Informal evidence suggests that individuals are willing to pay only a finite and, typically, very lo...
According to the harmonic sequence paradox (Blavatskyy 2006), an expected utility decision maker's w...
Blavatskyy (2006) formulated a game of chance based on the harmonic series which, he suggests, leads...
Expected value theory has been known for centuries to be subject to critique by St. Petersburg parad...
It has been accepted for over 270 years that the expected monetary value (EMV)of the St Petersburg g...
Summary.: We find that in cumulative prospect theory (CPT) with a concave value function in gains, a...
We find that in cumulative prospect theory (CPT) with a concave value function in gains, a lottery w...
This paper proposes a new decision theory of how individuals make random errors when they compute th...
Expected value theory has been known for centuries to be subject to critique by St. Petersburg parad...
The St. Petersburg paradox refers to a gamble of infinite expected value, where people are likely to...
Economists have spent more than 200 years to understand the concept of utility. One self-evident pre...
The St.~Petersburg Paradox is a famous economic and philosophical puzzle that has generated numerous...
Three main groups of results have been obtained: 1) The question is emphasized whether the pro...
A standard method to elicit certainty equivalents is the Becker-DeGroot-Marschak (BDM) procedure. We...
The St. Petersburg is one of the oldest violations of expected utility theory. Thus far, explanation...
Informal evidence suggests that individuals are willing to pay only a finite and, typically, very lo...
According to the harmonic sequence paradox (Blavatskyy 2006), an expected utility decision maker's w...
Blavatskyy (2006) formulated a game of chance based on the harmonic series which, he suggests, leads...
Expected value theory has been known for centuries to be subject to critique by St. Petersburg parad...
It has been accepted for over 270 years that the expected monetary value (EMV)of the St Petersburg g...
Summary.: We find that in cumulative prospect theory (CPT) with a concave value function in gains, a...
We find that in cumulative prospect theory (CPT) with a concave value function in gains, a lottery w...
This paper proposes a new decision theory of how individuals make random errors when they compute th...
Expected value theory has been known for centuries to be subject to critique by St. Petersburg parad...
The St. Petersburg paradox refers to a gamble of infinite expected value, where people are likely to...
Economists have spent more than 200 years to understand the concept of utility. One self-evident pre...
The St.~Petersburg Paradox is a famous economic and philosophical puzzle that has generated numerous...
Three main groups of results have been obtained: 1) The question is emphasized whether the pro...
A standard method to elicit certainty equivalents is the Becker-DeGroot-Marschak (BDM) procedure. We...
The St. Petersburg is one of the oldest violations of expected utility theory. Thus far, explanation...