# A Resolution of St. Petersburg Paradox

arXiv: https://arxiv.org/abs/2111.14635 · HTML: https://mlsanity.com/paper/2111.14635/

## Key facts

- Cited by 3 papers in the map (data through 14 Oct 2026).
- First posted on arXiv 24 Nov 2021.

## Built on by (most cited first, 3 of 3)

- [Quantification of emotions in decision making](https://mlsanity.com/paper/2203.02217/) (2022)
- [Quantum Operation of Affective Artificial Intelligence](https://mlsanity.com/paper/2305.08112/) (2023)
- [Discrete Versus Continuous Algorithms in Dynamics of Affective Decision Making](https://mlsanity.com/paper/2309.00357/) (2023)

## Abstract (arXiv)

The St. Petersburg paradox is the oldest paradox in decision theory and has played a pivotal role in the introduction of increasing concave utility functions embodying risk aversion and decreasing marginal utility of gains. All attempts to resolve it have considered some variants of the original set-up, but the original paradox has remained unresolved, while the proposed variants have introduced new complications and problems. Here a rigorous mathematical resolution of the St. Petersburg paradox is suggested based on a probabilistic approach to decision theory.