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Sorry for not crediting the authors cause I can't find the tweet but it's an entertaining paradox;
if you start from wealth of $100, consider two coin-flip games:
1) pays you $11 for heads, you lose $10 for tails
2) pays 11% of your current wealth for heads, lose 10% for tails
if you start from wealth of $100, consider two coin-flip games:
1) pays you $11 for heads, you lose $10 for tails
2) pays 11% of your current wealth for heads, lose 10% for tails
If you play these games repeatedly, your wealth playing the first game will grow to infinity but in the second game it will tend to zero.
(the intuition being that if you go from 100 to 90 then an 11% win only brings you back to 99.9; a 10% loss from 111 also takes you to 99.9. So a win/loss pair reduces your wealth by 0.1%)
