Related papers: Rational Bubbles: A Clarification
By investigating nonfungible tokens (NFTs), we provide the first systematic study of retail investor behavior through asset bubbles. Given that NFTs are recorded in public blockchains, we are able to track investor behavior over time,…
This paper highlights the role of risk neutral investors in generating endogenous bubbles in derivatives markets. We find that a market for derivatives, which has all the features of a perfect market except completeness and has some risk…
Recent developments in cosmology suggest that much of the universe is in a state of explosive, accelerated expansion, called inflation. We live in a "bubble" where inflation has ended, and other bubbles with diverse properties are…
We attempt to make superdeterminism more intuitive, notably by simulating a deterministic model system, a billiard game. In this system an initial 'bang' correlates all events, just as in the superdeterministic universe. We introduce the…
A bubble is characterized by the presence of an underlying asset whose discounted price process is a strict local martingale under the pricing measure. In such markets, many standard results from option pricing theory do not hold, and in…
Let $X \subset \mathbb{P}^n$ be a general Fano complete intersection of type $(d_1,\dots, d_k)$. If at least one $d_i$ is greater than $2$, we show that $X$ contains rational curves of degree $e \leq n$ with balanced normal bundle. If all…
A natural notion of rationality/consistency for aggregating models is that, for all (possibly aggregated) models $A$ and $B$, if the output of model $A$ is $f(A)$ and if the output model $B$ is $f(B)$, then the output of the model obtained…
This article proposes a complementary theoretical framework in behavioural finance by interpreting financial markets during boom-and-bust episodes as a Le Bonian crowd. While behavioural finance has documented the limits of individual…
It is already understood that the increasing observational evidence for an open Universe may be reconciled with inflation if our horizon is contained inside one single huge bubble nucleated during the inflationary phase transition. In the…
We go into the need for, and the requirements on, a formal theory of budgets. We present a simple algebraic theory of rational budgets, i.e., budgets in which amounts of money are specified by functions on the rational numbers. This theory…
Bubbling is a run-time graph transformation studied for the execution of non-deterministic steps in functional logic computations. This transformation has been proven correct, but as currently formulated it requires information about the…
In this report we discuss and propose a correction to a convergence and stability issue occurring in the work of Da et al.[2015], in which they proposed a numerical model to simulate soap bubbles.
We study an overlapping generations (OLG) exchange economy with an asset that yields dividends. First, we derive general conditions, based on exogenous parameters, that give rise to three distinct scenarios: (1) only bubbleless equilibria…
The paper proposes a derivation system for a logic of presuppositions as introduced by P. F. Strawson. It is based on truth-relevant logic described by M. Richard Diaz in 1981. In another paper I outlined a derivation system for t-relevant…
In this paper we deal with a new approach to probabilistic reasoning in a logical framework. Nearly almost all logics of probability that have been proposed in the literature are based on classical two-valued logic. After making clear the…
We prove that the moduli spaces of framed bundles over a smooth projective curve are rational. We compute the Brauer group of these moduli spaces to be zero under some assumption on the stability parameter.
In this paper we introduce a notion of rational singularities associated to pairs $(X, \ba^t)$ where $X$ is a variety, $\ba$ is an ideal sheaf and $t$ is a nonnegative real number. We prove that most standard results about rational…
A polygon is called rational if the angle between each pair of sides is a rational multiple of $\pi.$ The main theorem we will prove is Theorem 1: For rational polygons, periodic points of the billiard flow are dense in the phase space of…
We consider a constructive model for asset price bubbles, where the market price $W$ is endogenously determined by the trading activity on the market and the fundamental price $W^F$ is exogenously given, as in the work of Jarrow, Protter…
In life-cycle economics the Samuelson paradigm (Samuelson, 1969) states that the optimal investment is in constant proportions out of lifetime wealth composed of current savings and the present value of future income. It is well known that…