Two envelopes problem, what is the problem with my solution?

236 Views Asked by At

This question is regarding the two envelope problem.

http://en.wikipedia.org/wiki/Two_envelopes_problem

It seems to me the very simple solution to this problem is to make the sum of all the money in the envelopes (SUM) = X. No matter how you distribute X between the two envelopes, when you calculate the probabilistic value of money in the envelopes, it's always the same.

For example:

E1 = (A)X

E2 = (1-A)X

Initial choice probabilistic value calculation: (1/2)(A)X + (1/2)(1-A)X = (1/2)X

The probabilistic value of the second envelope would be: (1/2)(1-A)X + (1/2)(A)X = (1/2)X

Doesn't this resolve the problem? It seems too simple, can someone tell me what I'm missing?