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On the St. Petersburg Paradox
Authors:Knut K. Aase
Abstract:

The classical St. Petersburg Paradox is discussed in terms of doubling strategies. It is claimed that what was originally thought of as a ''paradox'' can hardly be considered as very surprising today, but viewed in terms of doubling strategies, we get some results that look paradoxical, at least to the practically oriented investor.
Keywords:St Petersburg Paradox  Free Lunch  Arbitrage Possibility  Expected Utility  Certainty Equivalent  Uniform Integrability
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