Word info

St. Petersburg paradox

Noun

Meaning

St. Petersburg paradox (plural St. Petersburg paradoxes)

(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.

Source: en.wiktionary.org

Related terms

Close letter words and terms