We review, and extend, one of the classic dynamic models of conflict in economics by Richardson (1919) and Boulding (1962). Restrictions on parameters are relaxed to account for alliances and for peace-keeping, yielding new dynamic patterns of conflict. In addition, we explore an incrementalist...

In der Oekonomik lassen sich viele Beispiele anfuehren, in denen zwischen der Durchfuehrung einer Massnahme und ihrer Wirkung auf eine Zielvariable eine bestimmte Zeit verstreicht. Diese Totzeit bringt erhebliche analytische Schwierigkeiten mit sich, zu deren Ueberwindung das Instrument der...

In an arbitrage free incomplete market we consider the problem of maximizing terminal isoelastic utility. The relationship between the optimal portfolio, the optimal martingale measure in the dual problem and the optimal value function of the problem is described by an BSDE. For a totally...

We consider two sequences of Markov chains inducing equivalent measures on the discrete path space. We establish conditions under which these two measures converge weakly to measures induced on the Wiener space by weak solutions of two SDEs, which are unique in the sense of probability law. We...