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St. Petersburg paradox
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English
Alternative forms
en Petersburg paradox Saint Petersburg paradox
Etymology
Named from its resolution by Daniel Bernoulli, one-time resident of the eponymous Russian city, who published his arguments in the Commentaries of the Imperial Academy of Science of Saint Petersburg (Bernoulli 1738). However, the problem was invented by Daniel's cousin, Nicolas Bernoulli.
Noun
St. Petersburg paradox
en economics The paradox raised by a particular (theoretical) lottery game that leads to a random variable with infinite expected value (i.e. infinite expected payoff) but nevertheless seems to be worth only a very small amount to the participants.
Related terms
en St. Petersburg lottery
Further reading