Purpose–The purpose of this paper is to argue that Bernoulli's “utility function solution to the St Petersburg paradox” was wrong and to find a new method to solve the paradox. Design/methodology/approach–This goal is attained through two ways: using Bernoulli's and Kramer's utility...

Purpose – The purpose of this paper is to argue that Bernoulli's “utility function solution to the St Petersburg paradox” was wrong and to find a new method to solve the paradox. Design/methodology/approach – This goal is attained through two ways: using Bernoulli's and Kramer's utility...