necktie paradox

is a wager where the man with the more expensive necktie gains the other party's necktie. This paradoxically seems a good wager for both parties.

Two men are each given a necktie by their respective wives as a Christmas present. Over drinks they start arguing over who has the cheaper necktie. They agree to have a wager over it. They will consult their wives and find out which necktie is more expensive. The terms of the bet are that the man with the more expensive necktie has to give it to the other as the prize.The first man reasons as follows: winning and losing are equally likely. If I lose, then I lose the value of my necktie. But if I win, then I win more than the value of my necktie. Therefore the wager is to my advantage. The second man can consider the wager in exactly the same way... thus, paradoxically, it seems both men have the advantage in the bet. This is obviously not possible.'

necktie paradox, n.Definitions

necktie paradox