Preprint Technical Note Version 1 This version is not peer-reviewed

Weak Arbitrage Theorem Incorporating Loss Aversion

Version 1 : Received: 4 November 2024 / Approved: 5 November 2024 / Online: 6 November 2024 (08:44:32 CET)

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.

Keywords

arbitrage theorem; loss aversion 

Subject

Business, Economics and Management, Economics

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