The two envelope paradox... AAARGH!

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Post by Zarathustra »

TheFallen wrote: What you've done here by turning things around, Z is apparently manage to prove that it's DISadvantageous to swap... :huh: ??? I thought the general opinion was that there was no advantage or disadvantage to swapping? But hang on... I'm going to combine your thoughts with V's in a moment.
I'm not concerned right now about the advantages/disadvantages. I'm concerned with your descriptions of the same exact situation in two different ways.
TheFallen wrote: The CRUCIAL difference in the Scenario #2 way of viewing things is that the amounts in the envelopes get labelled BEFORE picking happens. They are correctly labelled y and 2y. I then pick one at random. I must therefore have picked either y or 2y. If I've picked y and swap, I make a gain of y over my original envelope. If I've picked 2y and swap, I make a loss of y over my original envelope. Ergo, no benefit or disadvantage in swapping... I'm randomly going to end up with either y or 2y. That just feels like the proper answer and I'm sure it's absolutely true... but it doesn't explain where the Scenario #1 view is fallacious.
But my point is that y [envelop 1] = 1/2 (2y [envelope 2]). So even if the amounts in the envelopes are y and 2y, you can always describe your potential for loss as 1/2 of a particular envelope, depending on which one you're talking about. Saying that you've either increased or decreased your fortunes by the same amount misses the fact that this increase/decrease changes as a percentage of what's in your hand, depending on what's in your hand. Sure, +/- y is the same amount. But 2y is 100% increase over y, while y is a 50% decrease over 2y. So depending on your reference frame, describing one as a fraction or percentage of the other will change, even if you're going up or down by the same amount numerically. You're starting point is different in each case, thus your description of the percentage of gain or loss will change.

1 is 50% of 2 (or 1/2 of 2).
2 is 100% larger than 1 (or 2 times 1).

Even though the percentages (or fractions) in either case are different, you're going up or down by 1 each time.

That's all there is to this apparent "paradox."
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Post by TheFallen »

Z, I really don't get what you're trying to say. It seems that you're supporting Scenario #2 as the correct way of viewing things (which I agree with entirely - your potential gain is y and your potential loss is also y, so no point in swapping). However, I still don't see where the Scenario #1 way of viewing things is invalid. Scenario #1 says your potential gain is y, but your potential loss only 0.5y (or as you've pointed out, your potential gain is only 0.5y, but your potential loss is y, if you switch the frame of reference)?
Zarathustra wrote:That's all there is to this apparent "paradox."
For info, having just done a little more research, I can state with categoric certainty that you've oversimplified things. :biggrin:
Wikipedia on The Two Envelope Problem wrote:No proposed solution is widely accepted as correct. Despite this it is common for authors to claim that the solution to the problem is easy, even elementary. However, when investigating these elementary solutions they often differ from one author to the next. Since 1987 new papers have been published every year.
Now I don't even understand a quarter of the shit on that Wikipedia entry, so no wonder this continues to baffle me (let alone apparently most of the world's mathematical, logical and philosophical geniuses).

I'd be interested in anyone's views on Questions A to D in my post before this one, in case they're relevant to this.
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Post by wayfriend »

TheFallen: gaining 100% is the exact opposite of losing 50%. Despite the fact that the way we measure this makes it look like different amounts (50 vs 100), they are in fact exact opposites (halving and doubling), such that they cancel each other out exactly.

Not sure how this applies to the larger situation though.
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Post by TheFallen »

WF, if that's what Z was trying to say, thanks for the clarification. I do appreciate that y * 2 * 0.5 = y, but wasn't sure that this was what he was pointing out.

Having said that, when it comes to gambling, wouldn't you be delighted to find a casino that offers to double your stake if you win a coin flip, but only take half of your stake if you lose a coin flip? You'd play for as long as you possibly could, surely? Because you'd end up rolling in cash.

So I also don't know how it affects the larger picture.
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Post by Hashi Lebwohl »

TheFallen wrote: I'd be interested in anyone's views on Questions A to D in my post before this one, in case they're relevant to this.
I already did that.
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Post by Zarathustra »

TheFallen wrote:Z, I really don't get what you're trying to say.
I'm saying that describing the same situation in terms of percentage or fraction of x or y isn't the same as describing it in terms of numerical difference. You're using multiplication and division in one example, and simple addition or subtraction in the other. Your reference frame is more important for percentages than it is for strict numerical increase/decrease (addition/subtraction).

I admit, I'm not saying it well.
wayfriend wrote: TheFallen: gaining 100% is the exact opposite of losing 50%. Despite the fact that the way we measure this makes it look like different amounts (50 vs 100), they are in fact exact opposites (halving and doubling), such that they cancel each other out exactly.
Yes. Doubling 2y would look like a lot more than halving it (going up by 2 instead of down by 1). But that would mean there's an envelope with 4y, instead of the other envelope having y. That would be fine if we recognize that we could describe the amounts in each envelope as 2y and 4y, but this reduces to y and 2y. It's the same ratio. The problem comes from imagining that we could just as easily double our winnings by swapping even when we're holding the larger envelope (2 * 2y). But that's not a possibility. So you're never going to experience a possibility where the absolute (numerical) amount of increase is more than the absolute amount of potential decrease.

I think the fallacy comes from imagining that you have an equal chance of doubling or halving no matter which you pick, instead of understanding that you have a 50/50 chance of picking either the larger or smaller, which just happen to be either double or half (of the other) depending on which you pick. Once you've picked one, it's either the larger or smaller amount. If you've picked the larger one, there is not a 50/50 chance that the other is twice what you're holding, because that would include a possibility that doesn't exist (4y). The opposite case happens if you've picked the smaller one.

As WF points out, the only time this is like flipping a coin, where you have two equally probable outcomes, is prior to picking either envelope. But then we introduce self-referential problems once we've picked one and try to analyze the probabilities defined in terms of the one we're holding, or vice versa.
It seems that you're supporting Scenario #2 as the correct way of viewing things (which I agree with entirely - your potential gain is y and your potential loss is also y, so no point in swapping). However, I still don't see where the Scenario #1 way of viewing things is invalid.
Honestly, I'm not sure about the probabilities. I think you're right that swapping doesn't increase your chances ... and that's because you have a 50/50 chance each time of picking the larger or smaller. So scenario 1 is invalid by introducing possibilities that don't exist (i.e. twice the larger, or half the smaller). Those are not equally probable, because they're impossible, and yet they're treated with equal weight on par with actual possibilities.

There is no impossible scenario when you consider picking either envelope.
TheFallen wrote: Having said that, when it comes to gambling, wouldn't you be delighted to find a casino that offers to double your stake if you win a coin flip, but only take half of your stake if you lose a coin flip? You'd play for as long as you possibly could, surely? Because you'd end up rolling in cash.
That scenario is entirely different, because it's open-ended with no set amounts determined by the casino beforehand. It's not the equivalent of two envelopes with unchanging amounts. It truly (and rightly) defines the situation relative to what you're holding (which is known), instead of an unknown quantity in the other envelope. And you truly do have an equal chance of doubling or halving your stake, whereas you only have the illusion of such happening with the envelopes, an illusion created by your ignorance of its contents.
Last edited by Zarathustra on Thu Feb 27, 2014 5:05 pm, edited 2 times in total.
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Post by TheFallen »

Hashi Lebwohl wrote:
TheFallen wrote: I'd be interested in anyone's views on Questions A to D in my post before this one, in case they're relevant to this.
I already did that.
So you did, Hashi - my apologies for missing it.

I'm intrigued as to your entirely non-mathematical recommendation based solely upon a bird in the hand being worth two in the bush. You recommend going against apparently beneficial mathematical principles... whoda thunk?

With respect, your statement that hey, you're bound to be better off than when you started, no matter what, is a slight issue duck, since it doesn't answer the question :P

I came up with the "hidden pre-flipped coin" scenarios, a) because it does seem very Schroedinger and b) because I was fiercely interested in WF's "two universe" (aka trousers of time) tentative attempt to make sense of all this back upthread.
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Post by Hashi Lebwohl »

TheFallen wrote:I'm intrigued as to your entirely non-mathematical recommendation based solely upon a bird in the hand being worth two in the bush. You recommend going against apparently beneficial mathematical principles... whoda thunk?

With respect, your statement that hey, you're bound to be better off than when you started, no matter what, is a slight issue duck, since it doesn't answer the question :P
Blind adherence to mathematical principle while living in the real world is foolishness.

The end of the original problem is, essentially "do you switch envelopes?". All I did was cut through the Bayesian labyrinth and jump to "no". The mathematics of the situation does indeed conclude "yes, you should switch" but I was focusing on obtaining a positive outcome, not the optimum positive outcome.
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Post by TheFallen »

Zarathustra wrote:I think the fallacy comes from imagining that you have an equal chance of doubling or halving no matter which you pick, instead of understanding that you have a 50/50 chance of picking either the larger or smaller, which just happen to be either double or half (of the other) depending on which you pick. Once you've picked one, it's either the larger or smaller amount. If you've picked the larger one, there is not a 50/50 chance that the other is twice what you're holding, because that would include a possibility that doesn't exist (4y). The opposite case happens if you've picked the smaller one.

As WF points out, the only time this is like flipping a coin, where you have two equally probable outcomes, is prior to picking either envelope. But then we introduce self-referential problems once we've picked one and try to analyze the probabilities defined in terms of the one we're holding, or vice versa..

...Honestly, I'm not sure about the probabilities. I think you're right that swapping doesn't increase your chances ... and that's because you have a 50/50 chance each time of picking the larger or smaller. So scenario 1 is invalid by introducing possibilities that don't exist (i.e. twice the larger, or half the smaller). Those are not equally probable, because they're impossible, and yet they're treated with equal weight on par with actual possibilities.

There is no impossible scenario when you consider picking either envelope.
Z I think you're close to something this time and I think the problem with Scenario #1 lies in recursion. Here's where I am now (well, for the next few minutes at least :hithead: ):-

The very act of labelling the amount in the envelope you first pick as X, and then attempting to express the possible amounts in the second envelope in terms of X is fallacious in and of itself. There's an element of infinite recursion in there - as exemplified by my and WF's highlighting of the "eternal swap" apparent recommendation and your own managing to "prove" that you SHOULD swap envelopes if your frame of reference is based on envelope 1, but that you SHOULD NOT swap envelopes if your frame of reference is based on envelope 2.

Scenario #2 doesn't suffer from this problem, since it deals with both envelopes before either has been picked.

That's not entirely satisfactory as an explanation of fallacy, but it's the best I've got for the moment.
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Post by Vraith »

Going quickly through the wiki, I'm forced back to something I said earlier...that the problem is there is no global solution, only specific solutions.
At least partly because the value of the outcome is extrinsic to the calculation of the odds.
Let's try it this way.
Still keep the second choices as being 2x or x/2 as possible.
What if the game we're playing is "Loser's Draw."...meaning
X is a negative number.
Now we've got [.5[-50] + .5[-200].
Probability is completely unaffected. But we sure do WANT x/2 not 2x.
We still have infinite swapping loop.
And it is still dependent on our perception of the particular relationship of the two choices. And that relationship is not one that simply IS. It is one CREATED.

Related/extrapolating: a fair number of people say this basically describes the universe. It APPEARS to us to include "chaos," and "probability" and "chances." But it ACTUALLY is wholly determined. Every single event was absolutely set from the beginning. The chaos and odds are simply due to our permanent and unbridgeable ignorance. One definite answer in any and all possible instances that we can never, even theoretically, know.

But I think there is a problem of dependence/independence being pushed together in the equations.
Similar to: the odds of each and every independent coin flip are 50/50.
BUT the odds of 2 heads [or tails] in a ROW are 1/4.
In this paradox, isn't it a mistake to calculate the final result AS IF it depended ONLY on the second pick? I think we are, especially since, as has been pointed at several times, just like there are really only 2 possibilities in flipping a coin there are only 2 real possibilities in the envelopes.

Or maybe we THINK we're betting on an outcome...but we're really betting on a bet.

IDK.
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Post by TheFallen »

Very interesting extrapolation, V, and I must say that you've largely encapsulated the reasons why this apparently so simple problem delights and irks me to the same degree.

Okay, I am absolutely no mathematician, but I like to think that I've got the basics fairly well down. But this so simply constructed yet apparently unravellable paradox seems to me to cut across - or at least have implications on - many differing modes of thought: maths, logic, philosophy, even quantum. It's pretty much a thought experiment that involves pure metaphysics.

Indeterminacy does seem to have a major role here. This from Wiki on Heisenberg's Uncertainty Principle:
Wikipedia wrote:In quantum mechanics, the uncertainty principle is any of a variety of mathematical inequalities asserting a fundamental limit to the precision with which certain pairs of physical properties of a particle known as complementary variables, such as position x and momentum p, can be known simultaneously. For instance, in 1927, Werner Heisenberg stated that the more precisely the position of some particle is determined, the less precisely its momentum can be known, and vice versa.
This would seem to have some relevance to - or at least some commonality with - the two envelope problem. The two envelope problem also has a pair of complementary variables and also features a situation in which nothing can be known about how the two complementary variables relate to each other (i.e. which was the larger and which was the smaller) until after the event (that event being the revealing of what was in both envelopes). Since I'm speaking of quantum, this, as I and Hashi have both said before now, brings Schroedinger's cat very much to mind - the final act of observation (the revealing of what's in the second envelope) collapses the waveform and defines the reality - but only at that precise point. It's only then that indeterminacy/uncertainty finally ends. 8O

Actually, I ought to pose a question resulting from that assertion - presumably you guys also think it makes no difference to things if you open the first envelope and find a $100 bill? Sure, you've now got the first amount clearly defined - it's a hundred bucks - but you still have no clue as to what's in the second envelope and therefore no clue as to whether your hundred bucks is the smaller or the larger amount. To me, indeterminacy still seems to persist completely here.

V, your comment about pre-destination brought to my mind Newton, who as we all know was the champion of the purely mechanical universe where everything that would ever happen was utterly pre-determined from the outset. Of course, Newton injected God into things at the last minute, presumably for fear of burning in Hell (or possibly for being burnt as a heretic). I find it fascinating that such a seemingly simple problem as the two envelope conundrum can cause us to question whether our concept of free will is entirely illusory. As you said:
Vraith wrote:a fair number of people say this basically describes the universe. It APPEARS to us to include "chaos," and "probability" and "chances." But it ACTUALLY is wholly determined. Every single event was absolutely set from the beginning. The chaos and odds are simply due to our permanent and unbridgeable ignorance. One definite answer in any and all possible instances that we can never, even theoretically, know.
At this stage, I need to ask a couple of previously asked questions again:-

A. Say I give you $100. I then say to you that you can either keep that $100, or you can go for a coin flip, where I'll flip a coin and you call it. If you call it correctly, I'll give you $200 instead of your original $100. If you call it incorrectly, I'll give you $50 instead of your original $100.

There is no doubt as to the best thing to do here, right? Or is there?

C. Say I give you $100. I then say to you that you can either keep that $100, or you can reveal an already randomly flipped coin under a cup. If that coin shows heads, I'll give you $200 instead of your original $100. If that coin shows tails, I'll give you $50 instead of your original $100.

Is this - as Hashi maintains - exactly the same as A?

And if my point about indeterminacy above holds water (and needless to say, I'm unsure if it does), what's the significant difference between either A or C above and the original two sealed envelope puzzle? I mean, in all cases, pairs of complementary variables apply, with nothing being fully determined i) until the coin has been called and flipped [in A], or ii) until the coin has been revealed [in C], or iii) until the second envelope has been opened [in the original problem]. Nothing gets determined for certain until that final point in all examples. Is this significant?
Last edited by TheFallen on Fri Feb 28, 2014 2:16 pm, edited 4 times in total.
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Post by Fist and Faith »

I am the unluckiest person I know. Not kidding. I lose a greater percentage of coin tosses, and get more red lights, than anyone you know. I'm 50, and I've never had working AC or cd player in a car. They break within a week of acquiring the car, whether it's my current 2002 Saturn that I bought at a reputable dealer in 2006, or my MIL's car that she kept impeccable care of before giving to us when she got another. It's my life, and I've learned to accept it. (On the plus side, I am immune to headaches and poison ivy.) So I will not switch envelopes. If I don't switch, I will have originally chosen X. If I do switch, I will have originally chosen 2X. Either way, I end up with X. But at least I won't have given up 2X on a gamble.
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Post by TheFallen »

Oh man... a new wrinkle has just occurred to me on this one.

i) Okay, say I give you $100. Say I then offer you a coin flip, where your calling correctly will mean that you end up with $200, but if you call wrongly, you'll end up with $50. Damn good odds on a 50/50, I'd say...

Can we all agree that in this situation, it makes sense to go for the coin flip?

ii) Okay, exactly the same scenario to start with. I give you $100, offer you the coin flip, which you take. You call the coin flip, which this time is held by an independent and scrupulously fair adjudicator behind a curtain so you cannot see the outcome. The resultant amount from your coin flip call is put in an envelope and sealed. You're now offered the choice to stick with your $100 or to go for the envelope with the results of your coin flip call in it...

Howdya like them onions???

If we all can agree that the statement in italics above is true, then surely it must equally be true that one should choose to take the sealed envelope in scenario ii)?

Except that just brings us back to largely the same original problem, doesn't it? Well, at least the variant in which you've opened the first envelope before deciding whether to swap.

Which means that the statement in italics above may well be false...

Either that, or the act of opening the first envelope before deciding whether to swap or not in a two envelope scenario really is significant...

I wish I could stop myself thinking about this any more...
Newsflash: the word "irony" doesn't mean "a bit like iron" :roll:

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Post by Fist and Faith »

No, I do not agree with the statement in italics. I have 100, and I'm keeping it. With 50/50 odds, I'm almost certain to lose the coin toss, as per my previous post. The way things work with me, I would not chance it with a 6-sided die where I get 50 on a roll of 1, and 200 on 2-6. I would, however, chance it on a 10-sided, where I get 200 on 2-10.
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Post by TheFallen »

Okay, does everyone who's not been cursed from birth like Fisty clearly has agree with the italicised statement?
Newsflash: the word "irony" doesn't mean "a bit like iron" :roll:

Shockingly, some people have claimed that I'm egocentric... but hey, enough about them

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Post by Vraith »

[quote="Fist and Faith"]I am the unluckiest person I know. Not kidding. I lose a greater percentage of coin tosses/quote]

Oh, dear god, don't ever put us in a room together cuz it's a dead certainty that room will get struck by lightning, then landed on by a meteor, then the remains washed away in the flood from a dam collapse.
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I agree with your italics, TF...but ONLY because ALL the outcomes are better than my initial condition of 0 dollars. If the toss determines heads you get 200, tails you OWE me money, then no way. The toss odds haven't changed...only my benefit [or cost].
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Post by TheFallen »

Vraith wrote:I agree with your italics, TF...but ONLY because ALL the outcomes are better than my initial condition of 0 dollars.
Aaaah but that's cheating. Because there's a subsequent but still fixed and incontrovertibly true condition, where you're very definitely in possession of a hundred bucks. That's yours, so treat that as your starting point and then tell me if the italicised statement is correct.
Newsflash: the word "irony" doesn't mean "a bit like iron" :roll:

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Post by Fist and Faith »

Vraith wrote:Oh, dear god, don't ever put us in a room together cuz it's a dead certainty that room will get struck by lightning, then landed on by a meteor, then the remains washed away in the flood from a dam collapse.
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