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The St. Petersburg Paradox with State Dependent Linear Utility Functions for Monetary Returns: A Note

##article.authors##

  • Somdeb Lahiri (Formerly) PD Energy University (EU-G)

DOI:

https://doi.org/10.31224/3871

Keywords:

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

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.

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Posted

2024-09-03

License

Copyright (c) 2024 Somdeb Lahiri

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.