The St. Petersburg paradox with state dependent linear utility functions for monetary returns. A note

Somdeb Lahiri ()
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Somdeb Lahiri: PDEU, India

Managerial Economics, 2024, vol. 25, issue 2, 133-140

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.

Keywords: St. Petersburg paradox; countably infinite states of nature; state-dependent linear utility function of money (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:agh:journl:v:25:y:2024:i:2:p:133-140

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