Date of Award
2013
Document Type
Master's report
Degree Name
Master of Science in Mathematical Sciences (MS)
College, School or Department Name
Department of Mathematical Sciences
Advisor
Iosif Pinelis
Abstract
The St. Petersburg Paradox was first presented by Nicholas Bernoulli in 1713. It is related to a gambling game whose mathematical expected payoff is infinite, but no reasonable person would pay more than $25 to play it. In the history, a number of ideas in different areas have been developed to solve this paradox, and this report will mainly focus on mathematical perspective of this paradox. Different ideas and papers will be reviewed, including both classical ones of 18th and 19th century and some latest developments. Each model will be evaluated by simulation using Mathematica.
Recommended Citation
Huang, Keguo, "THREE HUNDRED YEARS OF THE ST. PETERSBURG PARADOX", Master's report, Michigan Technological University, 2013.