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This is an introduction to the special section on the economic theory of bubbles. …
Persistent link: https://www.econbiz.de/10010931621
equilibrium is still characterized by the no-arbitrage condition. …
Persistent link: https://www.econbiz.de/10010549105
possible in an incomplete markets framework the no--arbitrage arguments that have been developed in complete markets leads us … to defining the concept of pseudo--arbitrage. Building on this concept we are able to extend the no--arbitrage idea to a …
Persistent link: https://www.econbiz.de/10004968199
We extend the Cornet-de Boisdeffre (2002-2009) asymmetric information finite dimensional model to a more general setting, where agents may forecast prices with some private uncertainty. This new model drops both Radner's (1972-1979) classical, but restrictive, assumptions of rational...
Persistent link: https://www.econbiz.de/10010635092
she trades shares. To predict the impact on the stock price, she uses a state price process, her price theory. The firm … investment. We then impose that price theories be compatible with the observed equilibrium: they should satisfy a no-arbitrage …
Persistent link: https://www.econbiz.de/10008550184
equilibrium prices are determined, may still refine their information by eliminating sequentially "arbitrage state(s)", namely …, the state(s) which would grant the agent an arbitrage, if realizable. …
Persistent link: https://www.econbiz.de/10008472279
Persistent link: https://www.econbiz.de/10005597812
We are interested in proving an equilibrium existence result in a general equilibrium model with incomplete nominal asset markets. When we relax the assumption of strict positivity of initial endowments, then, as it is the case for every general equilibrium existence problem, we need to...
Persistent link: https://www.econbiz.de/10005696855
equilibrium prices are determined, may still refine their information by eliminating sequentially "arbitrage state(s)", namely …, the state (s) which would grant the agent an arbitrage, if realizable. This article provides a dual behavior of the one …
Persistent link: https://www.econbiz.de/10010738693