Rank dependent expected utility theory explains the St. Petersburg paradox

Ali al-Nowaihi (), Sanjit Dhami and Jia Zhu ()

No 15/22, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester

Abstract: We show that rank dependent expected utility theory can explain the St. Petersburg paradox. This complements recent work by Blavatskyy (2005), Camerer (2005), Rieger and Wang (2006) and Pfiffelmann (2011).

Keywords: St. Petersburg paradox; Rank dependent expected utility theory. (search for similar items in EconPapers)
JEL-codes: C60 D81 (search for similar items in EconPapers)
Date: 2015-09
New Economics Papers: this item is included in nep-mic and nep-upt
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