Source: wikibot/st-petersburg-paradox
= St. Petersburg paradox
{wiki=St._Petersburg_paradox}
The St. Petersburg paradox is a famous problem in probability theory and decision theory that highlights the conflict between expected value and practical decision-making. It was formulated by Daniel Bernoulli in 1738. The setup of the paradox is as follows: A player participates in a game where a fair coin is flipped repeatedly until it lands on heads. The pot starts at \$2 and doubles with each flip of tails.