LAUWERS, Luc; VALLENTYNE, Peter - Centrum voor Economische Studiën, Faculteit Economie … - 2011
We address how the value of risky options should be assessed in the case where the sum of the probability-weighted payoffs is not absolutely convergent and thus dependent on the order in which the terms are summed (e.g., as in the Pasadena Paradox). We develop and partially defend a proposal...