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We consider a nondominated model of a discrete-time financial market where stocks are traded dynamically, and options are available for static hedging. In a general measure-theoretic setting, we show that absence of arbitrage in a…

General Finance · Quantitative Finance 2015-03-17 Bruno Bouchard , Marcel Nutz

We use martingales to study Bayesian consistency. We derive sufficient conditions for both Hellinger and Kullback-Leibler consistency, which do not rely on the use of a sieve. Alternative sufficient conditions for Hellinger consistency are…

Statistics Theory · Mathematics 2007-06-13 Stephen Walker

Let $X=(X_t)_{t\geq 0}$ be a one-dimensional L\'evy process such that each $X_t$ has a $C^1_b$-density w.r.t. Lebesgue measure and certain polynomial or exponential moments. We characterize all polynomially bounded functions…

Probability · Mathematics 2021-10-19 Franziska Kühn , René L. Schilling

The density hypothesis on random times becomes now a standard in modeling of risks. One of the basic reasons to introduce the density hypothesis is the desire to have a computable credit risk model. However, recent work shows that merely an…

Probability · Mathematics 2014-02-04 Shiqi Song

Let $(\S^1,d_{\S^1})$ be the unit circle in $\R^2$ endowed with the arclength distance. We give a sufficient and necessary condition for a general probability measure $\mu$ to admit a well defined Fr\'echet mean on $(\S^1,d_{\S^1})$. %This…

Statistics Theory · Mathematics 2012-03-09 Benjamin Charlier

Let $\Lambda$ be a complex manifold and let $(f_\lambda)_{\lambda\in \Lambda}$ be a holomorphic family of rational maps of degree $d\geq 2$ of $\mathbb{P}^1$. We define a natural notion of entropy of bifurcation, mimicking the classical…

Dynamical Systems · Mathematics 2018-05-30 Henry De Thélin , Thomas Gauthier , Gabriel Vigny

Protective measurement, which was proposed as a method of observing the wavefunction of a single system, is extended to the observation of the density matrix of a single system. d'Espagnat's definition of `proper mixture' is shown to be…

Quantum Physics · Physics 2007-05-23 Y. Aharonov , J. Anandan

This paper introduces a new measure-conjugacy invariant for actions of free groups. Using this invariant, it is shown that two Bernoulli shifts over a finitely generated free group are measurably conjugate if and only if their base measures…

Dynamical Systems · Mathematics 2008-10-27 Lewis Bowen

We introduce an operational procedure to determine, with arbitrary probability and accuracy, optimal entanglement witness for every multipartite entangled state. This method provides an operational criterion for separability which is…

Quantum Physics · Physics 2007-05-23 Fernando G. S. L. Brandao , Reinaldo O. Vianna

One can consider $\mu$-Martin-L\"of randomness for a probability measure $\mu$ on $2^{\omega}$, such as the Bernoulli measure $\mu_p$ given $p \in (0, 1)$. We study Bernoulli randomness of sequences in $n^{\omega}$ with parameters $p_0,…

Logic · Mathematics 2020-11-30 Andrew DeLapo

We construct ergodic probability measures with infinite metric entropy for typical continuous maps and homeomorphisms on compact manifolds. We also construct sequences of such measures that converge to a zero-entropy measure.

Dynamical Systems · Mathematics 2025-04-15 Eleonora Catsigeras , Serge Troubetzkoy

In this paper we present a martingale related to the exit measures of super-Brownian motion. By changing measure with this martingale in the canonical way we have a new process associated with the conditioned exit measure. This measure is…

Probability · Mathematics 2016-11-01 Thomas S. Salisbury , John Verzani

We consider a stochastic volatility model where the price evolution depend on the exponential of the Ornstein--Uhlenbeck process. After a brief revision of the related theory the entropy-minimal equivalent martingale measure. is calculated.

Probability · Mathematics 2025-01-07 Yuri Kabanov , Mikhail A. Sonin

Although algorithmic randomness with respect to various non-uniform computable measures is well-studied, little attention has been paid to algorithmic randomness with respect to computable \emph{trivial} measures, where a measure $\mu$ on…

Logic · Mathematics 2015-03-24 Christopher P. Porter

Recently it has been argued that entropy can be a direct measure of complexity, where the smaller value of entropy indicates lower system complexity, while its larger value indicates higher system complexity. We dispute this view and…

Statistical Mechanics · Physics 2020-08-26 Jarosław Klamut , Ryszard Kutner , Zbigniew R. Struzik

We study sums of a random multiplicative function; this is an example, of number-theoretic interest, of sums of products of independent random variables (chaoses). Using martingale methods, we establish a normal approximation for the sum…

Number Theory · Mathematics 2010-12-02 Adam J. Harper

In this paper, we associate, to any submartingale of class $(\Sigma)$, defined on a filtered probability space $(\Omega, \mathcal{F}, \mathbb{P}, (\mathcal{F}_t)_{t \geq 0})$, which satisfies some technical conditions, a $\sigma$-finite…

Probability · Mathematics 2009-06-10 Joseph Najnudel , Ashkan Nikeghbali

We derive concentration inequalities for functions of the empirical measure of large random matrices with infinitely divisible entries and, in particular, stable ones. We also give concentration results for some other functionals of these…

Probability · Mathematics 2007-06-13 Christian Houdré , Hua Xu

Computing reachability probabilities is a fundamental problem in the analysis of probabilistic programs. This paper aims at a comprehensive and comparative account on various martingale-based methods for over- and under-approximating…

Programming Languages · Computer Science 2018-11-16 Toru Takisaka , Yuichiro Oyabu , Natsuki Urabe , Ichiro Hasuo

A general description of entanglement is suggested as an action realized by an arbitrary operator over given disentangled states. The related entanglement measure is defined. Because of its generality, this definition can be employed for…

Quantum Physics · Physics 2009-11-10 V. I. Yukalov