Re: The envelope problem, and a possible solution
Hey PTB,
you said: "I agree with your friend and his colleague under the assumption that the amounts in the envelopes are Fixed."
COnsider the following. If I made 100 pairs of envelopes with variable ammounts, such that each pair of envelopes contains N and 2N values. We play the game. You choose an envelope at random. And you then switch blind, or you don't. Would you predict that now switching affects EV?
Also would you think that your EV would be affected if now after picking an envelope you are now shown the value that ethe envelope contained?
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