The time resolution of the St Petersburg paradox

Philos Trans A Math Phys Eng Sci. 2011 Dec 13;369(1956):4913-31. doi: 10.1098/rsta.2011.0065.

Abstract

A resolution of the St Petersburg paradox is presented. In contrast to the standard resolution, utility is not required. Instead, the time-average performance of the lottery is computed. The final result can be phrased mathematically identically to Daniel Bernoulli's resolution, which uses logarithmic utility, but is derived using a conceptually different argument. The advantage of the time resolution is the elimination of arbitrary utility functions.