Arbitrage and Rational Decisions
Arbitrage and Rational Decisions
English | 2025 | ISBN: 103286351X | 328 Pages | PDF EPUB (True) | 7.3 MB
English | 2025 | ISBN: 103286351X | 328 Pages | PDF EPUB (True) | 7.3 MB
This unique book offers a new approach to the modeling of rational decision-making under conditions of uncertainty and strategic and competition interactions among agents. It presents a unified theory in which the most basic axiom of rationality is the principle of no-arbitrage, namely that neither an individual decision maker nor a small group of strategic competitors nor a large group of market participants should behave in such a way as to provide a riskless profit opportunity to an outside observer.