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We derive a consistent differential representation for the dynamics of a self-financing portfolio for different hedging strategies. In the basis of the derivation there is the so called "retarded action principle", which represents the…

Mathematical Finance · Quantitative Finance 2016-06-23 Dmitry Lesnik

We consider a financial market with one riskless and one risky asset. The super-replication theorem states that there is no duality gap in the problem of super-replicating a contingent claim under transaction costs and the associated dual…

Probability · Mathematics 2014-05-07 Walter Schachermayer

We consider the large deviations associated with the empirical mean of independent and identically distributed random variables under a subexponential moment condition. We show that non-trivial deviations are observable at a subexponential…

Probability · Mathematics 2025-07-22 Grégoire Ferré

Testing by betting has been a cornerstone of the game-theoretic statistics literature. One bets against the null hypothesis, and the accumulated wealth $W_t$ quantifies the evidence against the null hypothesis after $t$ rounds, and the null…

Statistics Theory · Mathematics 2026-05-13 Hongjian Wang , Muriel F. Pérez-Ortiz , Wouter M. Koolen , Aaditya Ramdas

Estimators computed from adaptively collected data do not behave like their non-adaptive brethren. Rather, the sequential dependence of the collection policy can lead to severe distributional biases that persist even in the infinite data…

Machine Learning · Statistics 2020-01-06 Yash Deshpande , Lester Mackey , Vasilis Syrgkanis , Matt Taddy

Consider the problem where a statistician in a two-node system receives rate-limited information from a transmitter about marginal observations of a memoryless process generated from two possible distributions. Using its own observations,…

Information Theory · Computer Science 2017-03-02 Gil Katz , Pablo Piantanida , Mérouane Debbah

It has been shown that Information-Disturbance theorem can play an important role in security proof of quantum cryptography. The theorem is by itself interesting since it can be regarded as an information theoretic version of uncertainty…

Quantum Physics · Physics 2007-08-01 Takayuki Miyadera , Hideki Imai

We consider the dynamics of the disordered trap model, which is known to be completely out-of-equilibrium and to present strong localization effects in its aging phase. We are interested into the influence of an external force, when it is…

Condensed Matter · Physics 2009-11-10 Cecile Monthus

This short note aims to point out mistakes in one of the implications for Theorem 2.8 in Bayraktar and Yu [Mathematical Finance, 28 (2018), pp. 800-838], which weakens the statement of this theorem.

Portfolio Management · Quantitative Finance 2025-09-16 Erhan Bayraktar , Xiang Yu

We consider a banking network represented by a system of stochastic differential equations coupled by their drift. We assume a core-periphery structure, and that the banks in the core hold a bubbly asset. The banks in the periphery have not…

Mathematical Finance · Quantitative Finance 2018-06-06 Francesca Biagini , Andrea Mazzon , Thilo Meyer-Brandis

In Chakraborti's yard-sale model of an economy, identical agents engage in pairwise trades, resulting in wealth exchanges that conserve each agent's expected wealth. Doob's martingale convergence theorem immediately implies almost sure…

Mathematical Finance · Quantitative Finance 2024-06-18 Christoph Börgers , Claude Greengard

We prove that some of the basic differential functions appearing in the (unramified) theory of arithmetic differential equations, especially some of the basic differential modular forms in that theory, arise from a "ramified situation".…

Number Theory · Mathematics 2011-04-04 A. Buium , A. Saha

Recently, a quantum key exchange protocol has been described, which served as basis for securing an actual bank transaction by means of quantum cryptography [quant-ph/0404115]. Here we show, that the authentication scheme applied is…

Quantum Physics · Physics 2007-05-23 Thomas Beth , Joern Mueller-Quade , Rainer Steinwandt

This paper presents a case study of a cryptocurrency scam that utilized coordinated and inauthentic behavior on Twitter. In 2020, 143 accounts sold by an underground merchant were used to orchestrate a fake giveaway. Tweets pointing to a…

Social and Information Networks · Computer Science 2024-06-27 Guglielmo Cola , Michele Mazza , Maurizio Tesconi

In another paper (Butterfield 2011), one of us argued that emergence and reduction are compatible, and presented four examples illustrating both. The main purpose of this paper is to develop this position for the example of phase…

Statistical Mechanics · Physics 2015-05-27 Jeremy Butterfield , Nazim Bouatta

Studying Binomial and Gaussian return dynamics in discrete time, we show how excess volatility can be traded to create growth. We test our results on real world data to confirm the observed model phenomena while also highlighting implicit…

Trading and Market Microstructure · Quantitative Finance 2015-11-10 Jan Hendrik Witte

Deliberate deceptiveness intended to gain an advantage is commonplace in human and animal societies. In a social dilemma, an individual may only pretend to be a cooperator to elicit cooperation from others, while in reality he is a…

Physics and Society · Physics 2014-11-03 Attila Szolnoki , Matjaz Perc

The interplay between derivations and algebraic structures has been a subject of significant interest and exploration. Inspired by Yau's twist and the Leibniz rule, we investigate the formal deformation of twisted Lie algebras by invertible…

Rings and Algebras · Mathematics 2024-06-21 I. Basdouri , E. Peyghan , M. A. Sadraoui , R. Saha

Consider a coin tossing experiment which consists of tossing one of two coins at a time, according to a renewal process. The first coin is fair and the second has probability $1/2 + \theta$, $\theta \in [-1/2,1/2]$, $\theta$ unknown but…

Probability · Mathematics 2019-03-25 Diego Marcondes , Cláudia Peixoto

Motivated by the study of asymptotic behaviour of the bandit problems, we obtain several strategy-driven limit theorems including the law of large numbers, the large deviation principle, and the central limit theorem. Different from the…

Probability · Mathematics 2022-05-19 Zengjing Chen , Shui Feng , Guodong Zhang