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Non-concave utility maximisation on the positive real axis in discrete time

Mathematical Finance 2015-04-23 v2

Abstract

We treat a discrete-time asset allocation problem in an arbitrage-free, generically incomplete financial market, where the investor has a possibly non-concave utility function and wealth is restricted to remain non-negative. Under easily verifiable conditions, we establish the existence of optimal portfolios.

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Cite

@article{arxiv.1501.03123,
  title  = {Non-concave utility maximisation on the positive real axis in discrete time},
  author = {Laurence Carassus and Miklós Rásonyi and Andrea M. Rodrigues},
  journal= {arXiv preprint arXiv:1501.03123},
  year   = {2015}
}

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20 pages