Hasanjan Sayit (WPI) - On the Existence of Consistent Price Systems

Mathematics - Colloquium

Friday, November 20, 2009
11:00 AM-12:00 PM

Stratton Hall
203

ABSTRACT: In a recent paper by Guasoni, Rasonyi, and Schachermayer, the conditional full support (CFS) condition was introduced as a sufficient condition for the existence of consistent price systems (CPSs). In this note, we give a weaker sufficient condition for a CPS to exist. We use this condition to describe a mechanism to construct models with CPSs. Using this mechanism we give two examples that admit CPSs but do not have the CFS property.

Suggested Audiences: Adult, College

E-mail: ma-chair@wpi.edu

Last Modified: November 16, 2009 at 10:10 AM

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