A Concise Resolution to the Two Envelope Paradox

2012/02/18 by Bliss, Eric
#FOS: Computer and information sciences #Other Statistics (stat.OT)

paper · doi:10.48550/arxiv.1202.4669

Abstract

In this paper, I will demonstrate a new perspective on the Two Envelope Problem. I hope to show with convincing clarity how the paradox results from an inherent problem pertaining to the interpretation of Bayesian probability. Specifically, a subjective probability that is inconsistent with reality can mislead reasoning based on Bayesian decision theory.

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