Adding Up to Nothing: Coarse Reasoning and the Vanishing St. Petersburg Paradox
The St. Petersburg paradox has long been a thorn in the side of rational decision theory. Offering an infinite expected payout but consistently eliciting modest real-world bids, the game exposes a rift between mathematical expectation and human judgment. Most solutions dodge this by modifying utility functions, imposing discounting, or resorting to exotic number systems. But what if we change the addition itself? ...