A Variation on the Paradox of Two Envelopes

Abstract

The paradox of two envelopes, one containing twice as much money as the other, is one of several that address logical aspects of probabilistic reasoning. Many presentations of the paradox are resolved by understanding the need to specify the distribution of quantities in the envelopes. However, even if a simple distribution of numbers is known, a new set of reasoning problems arise. The puzzle as presented here shares features with other reasoning problems and suggests a direction for their resolution.

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