Time, bounded utility, and the St. Petersburg paradox

✍ Scribed by Tyler Cowen; Jack High

• Publisher: Springer US
• Year: 1988
• Tongue: English
• Weight: 246 KB
• Volume: 25
• Category: Article
• ISSN: 0040-5833
• DOI: 10.1007/bf00133163

✦ Synopsis

The assumption of bounded utility function resolves the St. Petersburg paradox. The justification for such a bound is provided by Brito, who argues that limited time will bound the utility function. However, a reformulated St. Petersburg game, which is played for both money and time, effectively circumvents Brito's justification for a bound. Hence, no convincing justification for bounding the utility function yet exists.