Vivian, Robert William (2006): Considering the Pasadena "Paradox". Published in: South African Journal of Economic & Management Sciences , Vol. 2, No. NS9 (June 2006): pp. 277-284.
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Nover 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.
|Item Type:||MPRA Paper|
|Institution:||University of the Witwatersrand|
|Original Title:||Considering the Pasadena "Paradox"|
|Keywords:||expected values; St Petersburg paradox; decision rules; simulation; harmonic series|
|Subjects:||C - Mathematical and Quantitative Methods > C7 - Game Theory and Bargaining Theory > C70 - General|
|Depositing User:||Robert W Vivian|
|Date Deposited:||09. Oct 2007|
|Last Modified:||13. Feb 2013 01:05|
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