Weak Arbitrage Theorem Incorporating Loss Aversion
How to cite: Lahiri, S. Weak Arbitrage Theorem Incorporating Loss Aversion. Preprints 2024, 2024110287. https://doi.org/10.20944/preprints202411.0287.v1 Lahiri, S. Weak Arbitrage Theorem Incorporating Loss Aversion. Preprints 2024, 2024110287. https://doi.org/10.20944/preprints202411.0287.v1
Abstract
We provide an extension of the “Arbitrage Theorem” with state-dependent linear utility functions for monetary gains and losses allowing for “loss aversion” in each possible state of nature.
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Copyright: This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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