English

On the existence of personal equilibria

Portfolio Management 2025-12-10 v1 Probability

Abstract

We consider an investor who, while maximizing his/her expected utility, also compares the outcome to a reference entity. We recall the notion of personal equilibrium and show that, in a multistep, generically incomplete financial market model such an equilibrium indeed exists, under appropriate technical assumptions.

Keywords

Cite

@article{arxiv.2512.08348,
  title  = {On the existence of personal equilibria},
  author = {Laurence Carassus and Miklós Rásonyi},
  journal= {arXiv preprint arXiv:2512.08348},
  year   = {2025}
}