## What is St Petersburg game?

Abstract. The St. Petersburg Paradox is based on a simple coin flip game with an infinite expected winnings. The paradox arises by the fact that no rational human would risk a large finite amount to play the game, even though the expected value implies that a rational person should risk any finite amount to play it.

### What is the problem of St. Petersburg Paradox?

The St. Petersburg paradox is a situation where a naive decision criterion which takes only the expected value into account predicts a course of action that presumably no actual person would be willing to take. It is related to probability and decision theory in economics.

#### Why is it called the St. Petersburg Paradox?

This problem, discovered by the Swiss eighteenth-century mathematician Daniel Bernoulli is the St. Petersburg paradox. It’s called that because it was first published by Bernoulli in the St. Petersburg Academy Proceedings (1738; English trans.

Who won the St Petersburg game?

Kulusevski strikes late to earn Juventus win over Zenit Dejan Kulusevski scored a late goal to earn Juventus a 1-0 victory away to Zenit St Petersburg on Wednesday in the Champions League.

How do you calculate expected utility?

You calculate expected utility using the same general formula that you use to calculate expected value. Instead of multiplying probabilities and dollar amounts, you multiply probabilities and utility amounts. That is, the expected utility (EU) of a gamble equals probability x amount of utiles. So EU(A)=80.

## Did Saint Petersburg win their basketball game?

Petersburg, wins share of conference title. The Eastern Florida State College men’s basketball team cut down the nets on Tuesday night. The Titans defeated St. Petersburg College 70-45 to finish the Central Conference season at 12-3 and earn a share of the conference title.

### How do you know if you are a risk-averse person?

A person is said to be:

1. risk averse (or risk avoiding) – if they would accept a certain payment (certainty equivalent) of less than \$50 (for example, \$40), rather than taking the gamble and possibly receiving nothing.
2. risk neutral – if they are indifferent between the bet and a certain \$50 payment.

#### What is wrong with expected utility theory?

Expected utility theory makes faulty predictions about people’s decisions in many real-life choice situations (see Kahneman & Tversky 1982); however, this does not settle whether people should make decisions on the basis of expected utility considerations.

Why are game stores in St Petersburg so popular?

St. Petersburg game stores house tens of thousands of the latest and most popular video games. Given the size of the industry and the popularity of gaming, it stands to reason that the inventories of these game stores are humongous, which allows them to sell new and used games at discount prices to serious gamers.

Is it rational to pay to play the St Petersburg game?

The “paradox” consists in the fact that our best theory of rational choice seems to entail that it would be rational to pay any finite fee for a single opportunity to play the St. Petersburg game, even though it is almost certain that the player will win a very modest amount.

## What is wrong with the St Petersburg game?

Another type of practical worry concerns the temporal dimension of the St. Petersburg game. Brito (1975) claims that the coin flipping may simply take too long time. If each flip takes n seconds, we must make sure it would be possible to flip it sufficiently many times before the player dies.

### Is the expected utility of the St Petersburg game Infinite?

The expected utility of the St. Petersburg game is not finite, but the actual outcome will always be finite. It would thus be a mistake to dismiss the paradox by arguing that no actual prizes can have infinite utility.