An Inside Look at the Two Envelopes Paradox


Authors: 
Ruma Falk, Raymond S. Nickerson
Volume: 
31(2)
Pages: 
Online
Year: 
2009
Publisher: 
Teaching Statistics
URL: 
http://www3.interscience.wiley.com/journal/122324625/abstract
Abstract: 

When two sealed envelopes contain money, one twice as much as the other, a player should be indifferent between them. But when one envelope is opened, one's decision should vary as a function of the observed value and one's subjective probabilities.

The CAUSE Research Group is supported in part by a member initiative grant from the American Statistical Association’s Section on Statistics and Data Science Education