St. Petersburg paradox
Paradoja de San Petersburgo
- Date
- 1738 (planteada en 1713) · confidence high
- Place
- Saint Petersburg, Russia
- Credited to
- Daniel Bernoulli
- Field
- Knowledge & symbols
What was discovered
A probability-theory paradox in which a betting game with infinite expected value is nevertheless worth little to real players, which led to the introduction of expected utility.
Posed by Nicolas Bernoulli in 1713 and analyzed by his cousin Daniel Bernoulli, published in 1738 in the Commentaries of the Imperial Academy of Saint Petersburg.
What it led to
- The concept of expected utility in economics
- Foundations of decision theory under uncertainty
Built on
- Probability theory (problem of points)1654
- Probability calculus
Made possible
- Prospect theory1979
- Expected utility theory