Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
972817 | Mathematical Social Sciences | 2007 | 16 Pages |
Abstract
This paper proves existence of equilibrium and the arbitrage pricing theorem for an asset exchange economy, where individuals' preferences may be incomplete or intransitive. This extends existing results to more general preferences. We also prove the arbitrage pricing theorem for a theory of choice under uncertainty by Bewley [Bewley, T. F. (2002), Knightian decision theory: part I, Decisions in Economics and Finance 25, 79–110.]. These preferences model Knightian uncertainty by preferences which may be incomplete but satisfy independence.
Related Topics
Physical Sciences and Engineering
Mathematics
Applied Mathematics
Authors
David Kelsey, Erkan Yalcin,