Requirements

Gambling and stock trading the paper should be about one or both of the following paradoxical observations: the large amount of gambling and the large amount of stock trading.

There are two short readings that go some way toward setting out the sense in which these are paradoxical observations.

Starting from those readings, you should find and summarize other work which provides theories of those observations.

Readings:

1. Investment Decision under Uncertainty: Applications of the State-Preference Approach Author(s): J. Hirshleifer

http://www.jstor.org/stable/1880692

2. A Bit About the St. Petersburg Paradox by Jesse Albert Garcia