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Any group of risk neutral agents who hold differing beliefs is vulnerable to money pumps (arbitrage). Thus, the agents may wish to reconcile their beliefs into a new joint belief. We propose a criterion for the choice of reconciled belief based on the notion of ``rate of arbitrage.''' It is...
Persistent link: https://www.econbiz.de/10005196418
Any group of risk neutral agents who hold differing beliefs is vulnerable to money pumps (arbitrage). Thus, the agents may wish to reconcile their beliefs into a new joint belief. We propose a criterion for the choice of reconciled belief based on the notion of ``rate of arbitrage.''' It is...
Persistent link: https://www.econbiz.de/10010630068
Persistent link: https://www.econbiz.de/10010630111
Persistent link: https://www.econbiz.de/10008556212