Question: Envelope Problem 1 An Example There are two envelopes, each containing an amount of money: either 5, 10, 20, 40, 80, or 160 dollars. We

Envelope Problem

1 An Example

There are two envelopes, each containing an amount of money: either 5, 10, 20, 40, 80, or 160 dollars. We are told that one contains exactly twice as much as the other. Each of two individuals is randomly provided with an envelope (but it is still true that one contains twice as much as the other), and if both agree to do so they can switch. Should they ever switch?

2 A Variant

Suppose you are told that one envelope contains one more dollar than the other, and there is no upper or lower limit to the amounts in the envelopes. You are given one of the envelopes at random and see that it contains X dollars. Does the switching "paradox" of the original problem still exist? What if there are upper and lower limits?

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