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When to accept a sequence of gambles
Authors:Ola Hammarlid
Institution:Stockholm University, Department of Mathematic, SE-106 91 Stockholm, Sweden
Abstract:When is a sequence of gambles, which is initially rejected eventually accepted? The eventual acceptance is defined as a pair property between the utility function and the sequences of gambles. A sequence of gambles is accepted when the gambles follow a large deviation principle and the utility function is non-satiated and bounded from below in a certain way. The number of gambles required for acceptance is computed.
Keywords:Fallacy of large numbers  Eventual acceptance property  Large deviation  Rate function  Expected utility
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