Exploring gambles reveals foundational difficulty behind economic theory - 3 views
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jcunha on 08 Feb 16In the wake of the financial crisis, many started questioning different aspects of the economic formalism. Here a mathematical "dynamic" alternative to economic utility theory (which has also been the target of some famous recent attacks, see prospect theory) is developed and applied to the St. Petersburg coin tossing paradox. A good read at http://scitation.aip.org/content/aip/journal/chaos/26/2/10.1063/1.4940236