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St. Petersburg Paradox
The St. Petersburg paradox or St. Petersburg lottery is a paradox involving the game of flipping a coin where the expected payoff of the theoretical lottery game approaches infinity but nevertheless seems to be worth only a very small amount to the participants. The St. Petersburg paradox is a situation where a naive decision criterion that takes only the expected value into account predicts a course of action that presumably no actual person would be willing to take. Several resolutions to the paradox have been proposed. The problem was invented by Nicolas Bernoulli, who stated it in a letter to Pierre Raymond de Montmort on September 9, 1713. as translated and posted at However, the paradox takes its name from its analysis by Nicolas' cousin Daniel Bernoulli, one-time resident of the eponymous Russian city, who in 1738 published his thoughts about the problem in the ''Commentaries of the Imperial Academy of Science of Saint Petersburg''. The St. Petersburg game A casino of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Bernoulli Nicolaus(II)
Bernoulli can refer to: People *Bernoulli family of 17th and 18th century Swiss mathematicians: **Daniel Bernoulli (1700–1782), developer of Bernoulli's principle **Jacob Bernoulli (1654–1705), also known as Jacques, after whom Bernoulli numbers are named **Jacob II Bernoulli (1759–1789) **Johann Bernoulli (1667–1748) **Johann II Bernoulli (1710–1790) **Johann III Bernoulli (1744–1807), also known as Jean, astronomer **Nicolaus I Bernoulli (1687–1759) **Nicolaus II Bernoulli (1695–1726) * Elisabeth Bernoulli (1873–1935), Swiss temperance campaigner *Hans Benno Bernoulli (1876–1959), Swiss architect *Ludwig Bernoully (1873–1928), German architect Mathematics * Bernoulli differential equation * Bernoulli distribution and Bernoulli random variable * Bernoulli's inequality * Bernoulli's triangle * Bernoulli number * Bernoulli polynomials * Bernoulli process * Bernoulli trial * Lemniscate of Bernoulli Science * 2034 Bernoulli, minor planet * Bernoulli's principle, ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Veridical Paradox
A paradox is a logically self-contradictory statement or a statement that runs contrary to one's expectation. It is a statement that, despite apparently valid reasoning from true premises, leads to a seemingly self-contradictory or a logically unacceptable conclusion. A paradox usually involves contradictory-yet-interrelated elements that exist simultaneously and persist over time. They result in "persistent contradiction between interdependent elements" leading to a lasting "unity of opposites". In logic, many paradoxes exist that are known to be invalid arguments, yet are nevertheless valuable in promoting critical thinking, while other paradoxes have revealed errors in definitions that were assumed to be rigorous, and have caused axioms of mathematics and logic to be re-examined. One example is Russell's paradox, which questions whether a "list of all lists that do not contain themselves" would include itself, and showed that attempts to found set theory on the identification ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Prospect Theory
Prospect theory is a theory of behavioral economics and behavioral finance that was developed by Daniel Kahneman and Amos Tversky in 1979. The theory was cited in the decision to award Kahneman the 2002 Nobel Memorial Prize in Economics. Based on results from controlled studies, it describes how individuals assess their loss and gain perspectives in an asymmetric manner (see loss aversion). For example, for some individuals, the pain from losing $1,000 could only be compensated by the pleasure of earning $2,000. Thus, contrary to the expected utility theory (which models the decision that perfectly rational agents would make), prospect theory aims to describe the actual behavior of people. In the original formulation of the theory, the term ''prospect'' referred to the predictable results of a lottery. However, prospect theory can also be applied to the prediction of other forms of behaviors and decisions. Overview Prospect theory stems from Loss aversion, where the ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economic Theory (journal)
''Economic Theory'' is a peer-reviewed academic journal that focuses on theoretical economics, particularly social choice, general equilibrium theory, and game theory. Mathematically rigorous articles are also published in the fields of experimental economics, public economics, international economics, development economics, and industrial organisation. The journal is the official journal of the Society for the Advancement of Economic Theory. Both the society and the journal were founded by Charalambos D. Aliprantis, David Cass, Douglas Gale, Mukul Majumdar, Edward C. Prescott, Nicholas C. Yannelis Nicholas C. Yannelis ( el, Νικόλαoς Γιανvέλης; born 1953) is the Henry B. Tippie Research Professor of Economics and Applied Mathematics and Computation at the University of Iowa. He is an emeritus Commerce Distinguished Alumni Pr ..., and Yves Younes. External links * {{DEFAULTSORT:Economic Theory (Journal) Economics journals Publications established in 1 ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cumulative Prospect Theory
Cumulative prospect theory (CPT) is a model for descriptive decisions under risk and uncertainty which was introduced by Amos Tversky and Daniel Kahneman in 1992 (Tversky, Kahneman, 1992). It is a further development and variant of prospect theory. The difference between this version and the original version of prospect theory is that weighting is applied to the cumulative probability distribution function, as in rank-dependent expected utility theory but not applied to the probabilities of individual outcomes. In 2002, Daniel Kahneman received the Bank of Sweden Prize in Economic Sciences in Memory of Alfred Nobel for his contributions to behavioral economics, in particular the development of Cumulative Prospect Theory (CPT). Outline of the model The main observation of CPT (and its predecessor prospect theory) is that people tend to think of possible outcomes usually relative to a certain reference point (often the status quo) rather than to the final status, a phenomenon whi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Behavioral Finance
Behavioral economics studies the effects of psychological, cognitive, emotional, cultural and social factors on the decisions of individuals or institutions, such as how those decisions vary from those implied by classical economic theory. Behavioral economics is primarily concerned with the bounds of rationality of economic agents. Behavioral models typically integrate insights from psychology, neuroscience and microeconomic theory. The study of behavioral economics includes how market decisions are made and the mechanisms that drive public opinion. The concepts used in behavioral economics today can be traced back to 18th-century economists, such as Adam Smith, who deliberated how the economic behavior of individuals could be influenced by their desires. The status of behavioral economics as a subfield of economics is a fairly recent development; the breakthroughs that laid the foundation for it were published through the last three decades of the 20th century. Behav ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Zeitschrift Für Nationalökonomie
''Journal of Economics'', founded as ''Zeitschrift für Nationalökonomie'', is an academic journal of economics with an emphasis on mathematical microeconomic theory, although it publishes occasional articles on macroeconomics. ''Zeitschrift für Nationalökonomie'' was first published in 1930, as a revival of an earlier ''Zeitschrift für Volkswirtschaft, Sozialpolitik und Verwaltung'' which was published from 1892 into 1927 (from 1921 under the name ''Zeitschrift für Volkswirtschaft und Socialpolitik''). The initial editor of ''Zeitschrift für Nationalökonomie'' was Hans Mayer, a third-generation member of the Austrian School. Mayer avowedly welcomed contributions from all schools of thought, so long as the work were scientifically rigorous and not politically ideological in nature.Hans Mayer: ''Zur Einführung''. In: ''Zeitschrift für Nationalökonomie'', , Volume 1, No 1, pp. 1–3, . It is published by Springer Vienna, a division of Springer Science+Business Media Spr ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Gabriel Cramer
Gabriel Cramer (; 31 July 1704 – 4 January 1752) was a Genevan mathematician. He was the son of physician Jean Cramer and Anne Mallet Cramer. Biography Cramer showed promise in mathematics from an early age. At 18 he received his doctorate and at 20 he was co-chairHe did not get the chair of philosophy he had been a candidate for; but the University of Geneva was so impressed by him that it created a chair of mathematics for him and for his friend Jean-Louis Calandrini; the two alternated as chairs. of mathematics at the University of Geneva. In 1728 he proposed a solution to the St. Petersburg Paradox that came very close to the concept of expected utility theory given ten years later by Daniel Bernoulli. He published his best-known work in his forties. This included his treatise on algebraic curves (1750). It contains the earliest demonstration that a curve of the ''n''-th degree is determined by ''n''(''n'' + 3)/2 points on it, in general position. (See Cramer's th ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Republic And Canton Of Geneva
The Canton of Geneva, officially the Republic and Canton of Geneva (french: link=no, République et canton de Genève; frp, Rèpublica et canton de Geneva; german: Republik und Kanton Genf; it, Repubblica e Cantone di Ginevra; rm, Republica e chantun Genevra), is one of the 26 cantons forming the Swiss Confederation. It is composed of forty-five municipalities and the seat of the government and parliament is in the City of Geneva. Geneva is the French-speaking westernmost canton of Switzerland. It lies at the western end of Lake Geneva and on both sides of the Rhone, its main river. Within the country, the canton shares borders with Vaud to the east, the only adjacent canton. However, the borders of the canton are essentially international, with the French region of Auvergne-Rhône-Alpes. As is the case in several other Swiss cantons (Ticino, Neuchâtel, and Jura), Geneva is referred to as a republic within the Swiss Confederation. One of the most populated cantons, Gen ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Millionaire
A millionaire is an individual whose net worth or wealth is equal to or exceeds one million units of currency. Depending on the currency, a certain level of prestige is associated with being a millionaire. In countries that use the short scale number naming system, a billionaire is someone who has at least a thousand times a million dollars, euros or the currency of the given country. Many national currencies have, or have had at various times, a low unit value, in many cases due to past inflation. It is obviously much easier and less significant to be a millionaire in those currencies, thus a millionaire (in the local currency) in Hong Kong or Taiwan, for example, may be merely averagely wealthy, or perhaps less wealthy than average. A millionaire in Zimbabwe in 2007 could have been extremely poor. Because of this, the term 'millionaire' generally refers to those whose assets total at least one million units of a high-value currency, such as the United States dollar, Euro ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Logarithm
In mathematics, the logarithm is the inverse function to exponentiation. That means the logarithm of a number to the base is the exponent to which must be raised, to produce . For example, since , the ''logarithm base'' 10 of is , or . The logarithm of to ''base'' is denoted as , or without parentheses, , or even without the explicit base, , when no confusion is possible, or when the base does not matter such as in big O notation. The logarithm base is called the decimal or common logarithm and is commonly used in science and engineering. The natural logarithm has the number e (mathematical constant), as its base; its use is widespread in mathematics and physics, because of its very simple derivative. The binary logarithm uses base and is frequently used in computer science. Logarithms were introduced by John Napier in 1614 as a means of simplifying calculations. They were rapidly adopted by navigators, scientists, engineers, surveyors and oth ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Marginal Utility
In economics, utility is the satisfaction or benefit derived by consuming a product. The marginal utility of a good or service describes how much pleasure or satisfaction is gained by consumers as a result of the increase or decrease in consumption by one unit. There are three types of marginal utility. They are positive, negative, or zero marginal utility. For instance, you like eating pizza, the second piece of pizza brings you more satisfaction than only eating one piece of pizza. It means your marginal utility from purchasing pizza is positive. However, after eating the second piece you feel full, and you would not feel any better from eating the third piece. This means your marginal utility from eating pizza is zero. Moreover, you might feel sick if you eat more than three pieces of pizza. At this time, your marginal utility is negative. In other words, a negative marginal utility indicates that every unit of goods or service consumed will do more harm than good, which will le ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
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