The Sleeping Beauty problem, also known as the Sleeping Beauty paradox, is a puzzle in decision theory in which an ideally rational epistemic agent is told she will be awoken from sleep either once or twice according to the toss of a coin. Each time she will have no memory of whether she has been awoken before, and is asked what her degree of belief that “the outcome of the coin toss is Heads” ought to be when she is first awakened.
History
The problem was originally formulated in unpublished work in the mid-1980s by Arnold Zuboff (the work was later published as "One Self: The Logic of Experience") followed by a paper by Adam Elga. A formal analysis of the problem of belief formation in decision problems with imperfect recall was provided first by Michele Piccione and Ariel Rubinstein in their paper: "On the Interpretation of Decision Problems with Imperfect Recall" where the "paradox of the absent minded driver" was first introduced and the Sleeping Beauty problem discussed as Example 5. The name "Sleeping Beauty" was given to the problem by Robert Stalnaker and was first used in extensive discussion in the Usenet newsgroup...
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