#4 The Missing Billionaires – The St Petersberg Paradox.

[This series is a slow chapter-by-chapter review of the book The Mission Billionaires by James White and Victor Haghani. It's getting special treatment on this blog because it is novel and can potentially result in a new Dr Wealth course. To understand it all, the best option is to read the book. Otherwise, you may need to read from the first installment of this series here.]

The St Petersberg paradox illustrates the differences between mathematical theory and street-level practice.

Suppose you are offered a bet where you toss a coin. The first time you get heads, you get $2. The second time you get heads, you get $4. This keeps doubling until you get a tail. Then the game ends, and you keep your winnings. So the payoff is 2 to the power of (consecutive heads+1).

The question is, how much will you pay for

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