St. Petersburg Paradox

The St. Petersburg Paradox is a thought experiment in probability and economics. It involves a game where a fair coin is flipped until it lands on heads, and the payout is based on the number of flips. For example, if it lands on heads on the first flip, you win $2; on the second flip, $4; on the third, $8, and so on. Intuitively, many would be willing to pay a large amount to play, but the expected value of the game suggests a paradox where rational decisions conflict with emotional willingness, raising questions about value and risk in decision-making.