scholarly journals Viability and Arbitrage Under Knightian Uncertainty

Econometrica ◽  
2021 ◽  
Vol 89 (3) ◽  
pp. 1207-1234
Author(s):  
Matteo Burzoni ◽  
Frank Riedel ◽  
H. Mete Soner
Keyword(s):  
Asset Pricing ◽  
Fundamental Theorem ◽  
Efficient Market Hypothesis ◽  
Economic Viability ◽  
Knightian Uncertainty ◽  
Ex Ante ◽  
Probabilistic Structure ◽  
The Common ◽  
Absence Of Arbitrage ◽  
Microeconomic Foundations

We reconsider the microeconomic foundations of financial economics. Motivated by the importance of Knightian uncertainty in markets, we present a model that does not carry any probabilistic structure ex ante, yet is based on a common order. We derive the fundamental equivalence of economic viability of asset prices and absence of arbitrage. We also obtain a modified version of the fundamental theorem of asset pricing using the notion of sublinear pricing measures. Different versions of the efficient market hypothesis are related to the assumptions one is willing to impose on the common order.

scholarly journals The Fundamental Theorem of Asset Pricing Under Transaction Costs

2011 ◽  
Author(s):  
Paolo Guasoni ◽  
Emmanuel Lepinette-Denis ◽  
Miklos Rasonyi
Keyword(s):  
Asset Pricing ◽  
Transaction Costs ◽  
Fundamental Theorem

scholarly journals On The Fundamental Theorem Of Asset Pricing: Random Constraints And Bang-Bang No-Arbitrage Criteria

2004 ◽  
Vol 14 (2) ◽  
pp. 201-221 ◽  
Author(s):  
Igor V. Evstigneev ◽  
Klaus Schurger ◽  
Michael I. Taksar
Keyword(s):  
Asset Pricing ◽  
Fundamental Theorem ◽  
No Arbitrage

Fundamental Theorem of Asset Pricing

2020 ◽  
pp. 135-146
Author(s):  
Pablo Koch-Medina ◽  
Cosimo Munari
Keyword(s):  
Asset Pricing ◽  
Fundamental Theorem

scholarly journals The Common Factor in Idiosyncratic Volatility: Quantitative Asset Pricing Implications

2014 ◽  
Author(s):  
Bernard Herskovic ◽  
Bryan Kelly ◽  
Hanno Lustig ◽  
Stijn Van Nieuwerburgh
Keyword(s):  
Asset Pricing ◽  
Common Factor ◽  
Idiosyncratic Volatility ◽  
The Common

On The Origins of The Airframe Revolution

2021 ◽  
pp. 28-54
Author(s):  
Giuseppe Carignani
Keyword(s):  
Competitive Advantage ◽  
Historical Record ◽  
New Materials ◽  
Sustained Competitive Advantage ◽  
Ex Ante ◽  
Dominant Design ◽  
Common Opinion ◽  
The Common ◽  
Evolutionary Interpretation

The airframe revolution was the greatest development in aviation history after the Wright brothers, marking the advent of the modern dominant design in aerostructures, namely, the all-metal monoplane, which is still largely in existence. Therefore, the importance of the airframe revolution can hardly be overestimated. Nonetheless, its origin remains poorly understood. The common opinion is that the development of new materials and scientific advancements were the drivers of the transition. However, the historical record tells a different story. This chapter demonstrates that an event of ‘modular exaptation’, namely, the design of the Fokker D.VIII fighter, initiated the revolution in 1918, several years before its recognized inception. This evolutionary interpretation reconciles the gradualist Darwinian vision with the discontinuous character of radical innovation. The Fokker D.VIII case study suggests that detecting technological exaptations ex ante is possible and can provide firms with sustained competitive advantage.

scholarly journals Statistical analysis of economic viability of farms operating in Czech areas facing natural constraints

2020 ◽  
Vol 66 (No. 5) ◽  
pp. 193-202
Author(s):  
Tomas Hlavsa ◽  
Jindrich Spicka ◽  
Marie Stolbova ◽  
Zuzana Hlouskova
Keyword(s):  
Agricultural Policy ◽  
Rural Areas ◽  
Value Added ◽  
Economic Viability ◽  
The Czech Republic ◽  
Field Crops ◽  
Farm Accountancy Data Network ◽  
The Common ◽  
Net Value Added ◽  
Grazing Livestock

The redesign of the Common Agricultural Policy (CAP) allows for more room to address issues related to stabilising farmers’ income and developing their viability in areas facing natural constraints (ANC). Maintaining income levels, developing farm economies in rural areas, and encouraging competitive agricultural practises are the challenges facing the new CAP. ANCs in the Czech Republic are characterised by a lower level of income compared to areas outside ANCs and their generally prevailing specialisation in livestock production, which has been facing a relatively turbulent development in the last decade. The main aim of this paper is to evaluate the economic viability with regard to the level of natural disadvantage and with regard to farm specialisation. The database of Farm Accountancy Data Network (FADN) was used for assessment; the authors built the Farm Economic Viability indicator, which is based on modified Farm Net Value Added. The differences between the farm groups were tested through analysis of variance. Significantly lower viability was found in ANCs compared to farms outside ANCs. Field crops achieved significantly higher levels, both in and outside ANCs. The most threatened group of farms are grazing livestock in ANCs.

The fundamental theorem of asset pricing for continuous processes under small transaction costs

2008 ◽  
Vol 6 (2) ◽  
pp. 157-191 ◽  
Author(s):  
Paolo Guasoni ◽  
Miklós Rásonyi ◽  
Walter Schachermayer
Keyword(s):  
Asset Pricing ◽  
Transaction Costs ◽  
Fundamental Theorem ◽  
Continuous Processes
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