Theory and Decision

, Volume 25, Issue 3, pp 219–223 | Cite as

Time, bounded utility, and the St. Petersburg paradox

  • Tyler Cowen
  • Jack High
Article

Abstract

The assumption of bounded utility function resolves the St. Petersburg paradox. The justification for such a bound is provided by Brito, who argues that limited time will bound the utility function. However, a reformulated St. Petersburg game, which is played for both money and time, effectively circumvents Brito's justification for a bound. Hence, no convincing justification for bounding the utility function yet exists.

Keywords

St. Petersburg Paradox expected utility bounded utility cardinal utility Becker's theory of time 

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References

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Copyright information

© Kluwer Academic Publishers 1988

Authors and Affiliations

  • Tyler Cowen
    • 1
    • 2
  • Jack High
    • 1
    • 2
  1. 1.School of Social Sciences, University of California at IrvineIrvineUSA
  2. 2.Department of EconomicsGeorge Mason UniversityFairfaxUSA

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