{"pk":26134,"title":"The St. Petersburg Paradox: A Subjective Probability Solution","subtitle":null,"abstract":"The St. Petersburg Paradox (SPP), where people are willing topay only a modest amount for a lottery with infinite expectedgain, has been a famous showcase of human (ir)rationality.Since inception multiple solutions have been proposed,including the influential expected utility theory. Criticismsremain due to the lack of a priori justification for the utilityfunction. Here we report a new solution to the long-standingparadox, which focuses on the probability weightingcomponent (rather than the value/utility component) incalculating the expected value of the game. We show that anew Additional Transition Time (AT) based measure,motivated by both physics and psychology, can naturally leadto a converging expected value and therefore solve theparadox.","language":"eng","license":{"name":"","short_name":"","text":null,"url":""},"keywords":[{"word":"human judgment and decision making"},{"word":"probability"},{"word":"St. Petersburg Paradox"}],"section":"Papers","is_remote":true,"remote_url":"https://escholarship.org/uc/item/7890m30v","frozenauthors":[{"first_name":"Hongbin","middle_name":"","last_name":"Wang","name_suffix":"","institution":"Texas A&M University","department":""},{"first_name":"Yanlong","middle_name":"","last_name":"Sun","name_suffix":"","institution":"Texas A&M University","department":""},{"first_name":"Jack","middle_name":"W.","last_name":"Smith","name_suffix":"","institution":"Texas A&M University","department":""}],"date_submitted":null,"date_accepted":null,"date_published":"2016-01-01T13:00:00-05:00","render_galley":null,"galleys":[{"label":"PDF","type":"pdf","path":"https://journalpub.escholarship.org/cognitivesciencesociety/article/26134/galley/15770/download/"}]}