The Two Envelope Problem: a Paradox or Fallacious Reasoning?
| dc.contributor.author | Spanos, Aris | en |
| dc.contributor.department | Economics | en |
| dc.date.accessioned | 2017-03-13T19:07:10Z | en |
| dc.date.available | 2017-03-13T19:07:10Z | en |
| dc.date.issued | 2013-01 | en |
| dc.description.abstract | The primary objective of this note is to revisit the two envelope problem and propose a simple resolution. It is argued that the paradox arises from the ambiguity associated with the money content $x of the chosen envelope. When X=x is observed it is not know which one of the two events, X={\theta} or X=2{\theta}, has occurred. Moreover, the money in the other envelope Y is not independent of X; when one contains {\theta} the other contains 2{\theta}. By taking these important features of the problem into account, the paradox disappears. | en |
| dc.format.mimetype | application/pdf | en |
| dc.identifier.uri | http://hdl.handle.net/10919/76642 | en |
| dc.language.iso | en | en |
| dc.relation.uri | http://arxiv.org/abs/1301.0118v1 | en |
| dc.rights | In Copyright | en |
| dc.rights.uri | http://rightsstatements.org/vocab/InC/1.0/ | en |
| dc.subject | stat.ME | en |
| dc.title | The Two Envelope Problem: a Paradox or Fallacious Reasoning? | en |
| dc.type | Article - Refereed | en |
| dc.type.dcmitype | Text | en |
| pubs.organisational-group | /Virginia Tech | en |
| pubs.organisational-group | /Virginia Tech/All T&R Faculty | en |
| pubs.organisational-group | /Virginia Tech/Science | en |
| pubs.organisational-group | /Virginia Tech/Science/COS T&R Faculty | en |
| pubs.organisational-group | /Virginia Tech/Science/Economics | en |