St. Petersburg paradox

noun

The paradox raised by a particular (theoretical) lottery game that leads to a random variable with infinite expected value (i.e. infinite expected payoff) but nevertheless seems to be worth only a very small amount to the participants.

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Meanings

nounSt. Petersburg paradox (plural St. Petersburg paradoxes)

plural St. Petersburg paradoxes · alternative Petersburg paradox · alternative Saint Petersburg paradox

  1. economicsThe paradox raised by a particular (theoretical) lottery game that leads to a random variable with infinite expected value (i.e. infinite expected payoff) but nevertheless seems to be worth only a very small amount to the participants.

Origin

Named from its resolution by Daniel Bernoulli, one-time resident of the eponymous Russian city, who published his arguments in the Commentaries of the Imperial Academy of Science of Saint Petersburg (Bernoulli 1738). However, the problem was invented by Daniel's cousin, Nicolas Bernoulli.

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Cite this entry
APA

St. Petersburg paradox. (n.d.). In WatkinsX Dictionary. Retrieved November 5, 2026, from https://dictionary.watkinsx.com/word/St.%20Petersburg%20paradox

MLA

“St. Petersburg paradox.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/St.%20Petersburg%20paradox. Accessed November 5, 2026.

Chicago

WatkinsX Dictionary, s.v. “St. Petersburg paradox,” accessed November 5, 2026, https://dictionary.watkinsx.com/word/St.%20Petersburg%20paradox.

Source: St. Petersburg paradox on Wiktionary, CC BY-SA 4.0.