He means gambles that can have infinitely many different outcomes. This causes problems for unbounded utility functions because of the Saint Petersburg paradox.
But the way you solve the St Petersburg paradox in real life is to note that nobody has infinite money, nor infinite time, and therefore it doesn’t matter if your utility function spits out a weird outcome for it because you can have a prior of 0 that it will actually happen. Am I missing something?
He means gambles that can have infinitely many different outcomes. This causes problems for unbounded utility functions because of the Saint Petersburg paradox.
But the way you solve the St Petersburg paradox in real life is to note that nobody has infinite money, nor infinite time, and therefore it doesn’t matter if your utility function spits out a weird outcome for it because you can have a prior of 0 that it will actually happen. Am I missing something?
No.