Usenet Newsgroups : rec.puzzles Hall of FameThe rec.puzzles Hall of Fame is a compilation of over 500 of the most popular puzzles that have been posted and discussed in the rec.puzzles newsgroup. In most cases a detailed solution has been provided. Many of these puzzles also appear in Braingle's own collection. |
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The Allais Paradox involves the choice between two alternatives: A. 89% chance of an unknown amount 10% chance of $1 million 1% chance of $1 million B. 89% chance of an unknown amount (the same amount as in A) 10% chance of $2.5 million 1% chance of nothing What is the rational choice? Does this choice remain the same if the unknown amount is $1 million? If it is nothing?
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