Caratheodory, Finite Resources and the Geometry of Arbitrage
Portfolio Management
2026-02-19 v1
Abstract
Caratheodory's axiom of adiabatic inaccessibility states that, in any neighborhood of a thermodynamic state, certain states remain unreachable via adiabatic processes. Non-arbitrage mirrors this topological restriction in finance. Preserving this constraint in resource-limited systems identifies the exponential family not as a modeling convenience but as the requisite geometric structure unifying both domains.
Cite
@article{arxiv.2602.16539,
title = {Caratheodory, Finite Resources and the Geometry of Arbitrage},
author = {B. K. Meister},
journal= {arXiv preprint arXiv:2602.16539},
year = {2026}
}
Comments
6 pages