Time For A Solution: A Celebration Of The Resolution Of The St Petersburg Paradox

Time For A Solution: A Celebration Of The Resolution Of The St Petersburg Paradox
Panel discussion

Resources

Professor Flood's presentation
Professor Mainelli's remarks
Dr Adamou's concluding remarks
Professor Mainelli's Chartered Institute for Securities & Investment video interview of Dr Ole Peters

Agenda

Monday, 9 September 2013, is an important milestone in the history of financial mathematics – the 300th anniversary to the day of the formulation of the St Petersburg Paradox by Nicolas Bernoulli. In 2011, after 298 years, the Royal Society published Ole Peters’ solution. Ole Peters, Fellow of the London Mathematical Laboratory and external Professor at the Santa Fe Institute, pointed out that the paradox arises from a confusion between time averaging and ensemble averaging. Professor Peters’ solution provides the foundations for a decision theory where assumptions about psychological characteristics of individuals are replaced by information about dynamics. It challenges much received wisdom in neoclassical economics. A distinguished panel will debate the implications of Ole Peters’ work on this very special occasion at Gresham College.

Agenda & Speakers

18:00 - Welcome, George Littlejohn, CISI

18:05 - A short history of the St Petersburg Paradox, Professor Raymond Flood, Oxford University, Gresham College

18:20 - Film, Professor Ole Peters, London Mathematical Laboratory

18:50 - Panel discussion chaired by Alderman Professor Michael Mainelli, Z/Yen Group

19:05 - Concluding remarks, Dr Alex Adamou, London Mathematical Laboratory

19:15 - Reception until 20:00