# The time resolution of the St Petersburg paradox

@article{Peters2011TheTR, title={The time resolution of the St Petersburg paradox}, author={Ole Peters}, journal={Philosophical transactions. Series A, Mathematical, physical, and engineering sciences}, year={2011}, volume={369}, pages={4913 - 4931} }

A resolution of the St Petersburg paradox is presented. In contrast to the standard resolution, utility is not required. Instead, the time-average performance of the lottery is computed. The final result can be phrased mathematically identically to Daniel Bernoulli's resolution, which uses logarithmic utility, but is derived using a conceptually different argument. The advantage of the time resolution is the elimination of arbitrary utility functions.

## 46 Citations

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