The St. Petersburg Paradox was proposed before two centuries . In the paper we proposed a new pricing theory with several rules to solve the paradox and state that the fair pricing should be judged by buyer and seller independently. The pricing theory we proposed can be applied to financial market to solve the confusion with fat tails .
The St. Petersburg Paradox was proposed two centuries ago . In the paper , we propose a new pricing theory with several rules to solve the paradox and state that the fair pricing should be judged by the buyer and the seller independently. The seller is concerned about costs, and the buyer is concerned about the realistic prospect of returns. This pricing theory can be applied to financial market to solve the confusion with fat tail distribution .
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before two centuries
two centuries ago
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we proposed
, we propose
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buyer and
the buyer and the
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pricing theory we proposed
seller is concerned about costs, and the buyer is concerned about the realistic prospect of returns. This pricing theory
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tails
tail distribution