Paradox of the wallet
Probably posted on here before, but after 15 seconds of searching I didn't find it...
Two people take out their wallets and set them on the table. If they each decide to play, the money is counted up, and whoever has the most money of the two, gives it to the other. Assume that each player has a random amount of money for this purpose. Player A reasons that if he plays and loses, he will only lose the money in his wallet now known as $X. If he wins, however, he will win more than in his wallet, or $(X+Y) where Y is greater than or equal to 1 cent. Player A reasons that he has a 50% chance of winning this game and it is thus +EV for him to play. Player B reasons the same...how can this be?
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