Economics

A coin-flip game worth infinite money that no one will pay much to play

In this game, a coin is tossed until it lands heads, doubling the prize with every extra tail — 1 ducat, then 2, then 4, and so on. The expected payout is mathematically infinite, yet almost nobody will pay more than a few ducats to play it. Daniel Bernoulli resolved the puzzle in 1738 by arguing that money's value to a person diminishes the more of it they already have.

Daniel Bernoulli, Specimen Theoriae Novae de Mensura Sortis — Commentarii Academiae Scientiarum Imperialis Petropolitanae, 1738

One credited idea per card. No filler. Swipe the rest in Savvy.

Keep swiping — it's free Works right in your browser. No app store needed.