Re: The envelope problem, and a possible solution
Aaron, there is something that puzzles me about your reply regarding argument 1. Under the assumption that the method used for figuring EV in this argument is correct, then it would seem to me, that without any further assumptions that switching would always be EV.
Or am I now implicitly making the assumption that the value (say N) is an element of a set of positive real numbers?
My point is that as stated, argument 1 seems to argue that knowing the ammount will lead to a change in EV irrespective of the size of the ammount in the envelope. That is, the player will change strategy despite the fact that he/she didn't really get new information. Also, as stated, it would seem that unless N was a negative value, switching would always be EV.
What am I missing?
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