Schmidt, Ulrich; Zimper, Alexander - Institut für Weltwirtschaft (IfW) - 2011
According to the harmonic sequence paradox (Blavatskyy 2006), an expected utility decision maker's willingness …-to-pay for a gamble whose expected payoffs evolve according to the harmonic series is finite if and only if his marginal utility … of additional income becomes zero for rather low payoff levels. Since the assumption of zero marginal utility is …