The St. Petersburg paradox with state dependent linear utility functions for monetary returns. A note
The St. Petersburg paradox with state dependent linear utility functions for monetary returns. A note
Author(s): Somdeb LahiriSubject(s): Economy, Business Economy / Management
Published by: Wydawnictwa AGH
Keywords: St. Petersburg paradox; countably infinite states of nature; state-dependent linear utility function of money
Summary/Abstract: 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.
Journal: Managerial Economics
- Issue Year: 25/2024
- Issue No: 2
- Page Range: 133-140
- Page Count: 8
- Language: English
