Gain from the two-envelope problem via information asymmetry: on the suboptimality of randomized switching

DOI10.1098/rspa.2010.0541zbMath1237.91077OpenAlexW2144751778WikidataQ29308104 ScholiaQ29308104MaRDI QIDQ3092877

Derek Abbott, Ingmar Land, Badri N. Vellambi, Ken Lever, Alex Grant, Mark D. McDonnell

Publication date: 11 October 2011

Published in: Proceedings of the Royal Society A: Mathematical, Physical and Engineering Sciences (Search for Journal in Brave)

Full work available at URL: https://doi.org/10.1098/rspa.2010.0541

zbMATH Keywords

game theoryinformation asymmetryexchange paradoxtwo-envelope paradoxtwo-envelope problemrandomized switching

Mathematics Subject Classification ID

Decision theory (91B06) Stochastic models in economics (91B70)

Related Items

The two-envelope problem for general distributions ⋮ Anna Karenina and the two envelopes problem ⋮ Optimal two-stage pricing strategies from the seller's perspective under the uncertainty of buyer's decisions ⋮ Biased information and the exchange paradox ⋮ An optimal strategy for maximizing the expected real-estate selling price: accept or reject an offer?

Cites Work

• Bayesian analysis of stochastic volatility models with fat-tails and correlated errors
• Randomized switching in the two-envelope problem
• Optimal Investment Strategy for Risky Assets
• Universal portfolios with side information
• The Box Problem: To Switch or Not to Switch