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The aim of this paper is to develop an approach to obtain self-adjoint extensions of symmetric operators acting on anti-dual pairs. The main advantage of such a result is that it can be applied for structures not carrying a Hilbert space…

Functional Analysis · Mathematics 2020-02-17 Zsigmond Tarcsay , Tamás Titkos

We consider a nonlinear pricing environment with private information. We provide profit guarantees (and associated mechanisms) that the seller can achieve across all possible distributions of willingness to pay of the buyers. With a…

Theoretical Economics · Economics 2023-02-01 Dirk Bergemann , Tibor Heumann , Stephen Morris

We study the influence of additional intermediate marginal distributions on the value of the martingale optimal transport problem. From a financial point of view, this corresponds to taking into account call option prices not only, as…

Mathematical Finance · Quantitative Finance 2023-11-03 Julian Sester

For a compact set, we characterize the existence of a linear extension operator E for the space of Whitney jets without loss of derivatives, that is, E satisfies the best possible continuity estimates: The supremum of all partial…

Functional Analysis · Mathematics 2013-08-21 Leonhard Frerick , Enrique Jordá , Jochen Wengenroth

We introduce a mean-field extension of the LIBOR market model (LMM) which preserves the basic features of the original model. Among others, these features are the martingale property, a directly implementable calibration and an economically…

Probability · Mathematics 2022-06-22 Sascha Desmettre , Simon Hochgerner , Sanela Omerovic , Stefan Thonhauser

Applications of variational methods are typically restricted to conservative systems. Some extensions to dissipative systems have been reported too but require ad hoc techniques such as the artificial doubling of the dynamical variables.…

Plasma Physics · Physics 2017-04-05 I. Y. Dodin , A. I. Zhmoginov , D. E. Ruiz

We address the challenging problem of dynamically pricing complementary items that are sequentially displayed to customers. An illustrative example is the online sale of flight tickets, where customers navigate through multiple web pages.…

We develop the fundamental theorem of asset pricing in a probability-free infinite-dimensional setup. We replace the usual assumption of a prior probability by a certain continuity property in the state variable. Probabilities enter then…

General Finance · Quantitative Finance 2011-07-07 Frank Riedel

We consider a one-period Kyle (1985) framework where the insider can be subject to a penalty if she trades. We establish existence and uniqueness of equilibrium for virtually any penalty function when noise is uniform. In equilibrium, the…

Trading and Market Microstructure · Quantitative Finance 2018-09-21 Sylvain Carré , Pierre Collin-Dufresne , Franck Gabriel

For $\alpha\geq 2$, we investigate a class of Fourier extension operators on fractional surfaces $(\xi,|\xi|^\alpha)$. For the corresponding $\alpha$-Strichartz inequalities, by applying the missing mass method and bilinear restriction…

Classical Analysis and ODEs · Mathematics 2024-07-02 Boning Di , Dunyan Yan

We study the sensitivity of the expected utility maximization problem in a continuous semi-martingale market with respect to small changes in the market price of risk. Assuming that the preferences of a rational economic agent are modeled…

Portfolio Management · Quantitative Finance 2017-05-24 Oleksii Mostovyi , Mihai Sîrbu

The algebra of transactions as fundamental measurements is constructed on the basis of the analysis of their properties and represents an expansion of the Boolean algebra. The notion of the generalized economic measurements of the economic…

General Finance · Quantitative Finance 2017-03-22 S. I. Melnyk , I. G. Tuluzov

In this master's thesis, we introduce expansion systems as a general framework to describe a large variety of approximation algorithms, such as Taylor approximation, decimal expansion and continued fraction. We consider some basic…

Classical Analysis and ODEs · Mathematics 2012-06-05 V. A. Pessers

Derivatives and integration operators are well-studied examples of linear operators that commute with scaling up to a fixed multiplicative factor; i.e., they are scale-invariant. Fractional order derivatives (integration operators) also…

Functional Analysis · Mathematics 2022-06-23 Arash Amini , Julien Fageot , Michael Unser

Good economic mechanisms depend on the preferences of participants in the mechanism. For example, the revenue-optimal auction for selling an item is parameterized by a reserve price, and the appropriate reserve price depends on how much the…

Computer Science and Game Theory · Computer Science 2014-06-10 Shuchi Chawla , Jason Hartline , Denis Nekipelov

We develop extensions to auction theory results that are useful in real life scenarios. 1. Since valuations are generally positive we first develop approximations using the log-normal distribution. This would be useful for many finance…

Computer Science and Game Theory · Computer Science 2019-05-09 Ravi Kashyap

We provide a numerical method to determine the critical lengths of linear differential operators with constant real coefficients. The need for such a procedure arises when the orders increase. The interest of this article is clearly on the…

Numerical Analysis · Mathematics 2019-04-22 Carolina Vittoria Beccari , Giulio Casciola , Marie-Laurence Mazure

In this paper we use a property of the extension operator from the space of tangential traces of ${\rm H}({\rm curl};\Omega)$ in the context of the linear relaxed micromorphic model, a theory which is recently used to describe the behaviour…

Analysis of PDEs · Mathematics 2019-11-01 Ionel-Dumitrel Ghiba , Patrizio Neff , Sebastian Owczarek

In financial markets, liquidity is not constant over time but exhibits strong seasonal patterns. In this article we consider a limit order book model that allows for time-dependent, deterministic depth and resilience of the book and…

Trading and Market Microstructure · Quantitative Finance 2011-09-14 Antje Fruth , Torsten Schoeneborn , Mikhail Urusov

We propose a dynamical model of price formation on a spatial market where sellers and buyers are placed on the nodes of a graph, and the distribution of the buyers depends on the positions and prices of the sellers. We find that, depending…

Physics and Society · Physics 2022-11-15 Andrea Civilini , Vito Latora