Archive for 11th August 2013

Pradham ’13 on Wallet Paradox

The famous Wallet Paradox invites two similar individuals to lay their wallets on the table, the one with the lesser amount of money to win both. Paradoxically, each might reason: “I have the advantage, because if I lose, I lose just what I have, but if I win, I win more than I have.” A follow-up analysis assumes that each has the same expected amount of money and asks for the best probability distribution or “best strategy” with that given mean. The following note is based on a senior colloquium talk. Continue reading ‘Pradham ’13 on Wallet Paradox’ »