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Minimax Measures of Risk : Properties and Applications

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Author Info
Bernis, G.
Abstract

This paper adapts the methods of Minimax-Hedging developped in Bernis & Giraud [2000] to other models of financial markets, including discontinuous semi-martingale. The measure of the risk is defined as the value of a zero-sum game between the investor and a fictitious player, representing the market. In this paper, we prove that the zero-sum game has a value, and we provide some regularity properties of the dynamic measure of risk. We emphasized applications in insurance to price non-proportional treaties.

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Publisher Info
Paper provided by Université Panthéon-Sorbonne (Paris 1) in its series Papiers d'Economie Mathématique et Applications with number 2000.85.

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Length: 19 pages
Date of creation: 2000
Date of revision:
Handle: RePEc:fth:pariem:2000.85

Contact details of provider:
Postal: France; Universite de Paris I - Pantheon- Sorbonne, 12 Place de Pantheon-75005 Paris, France
Web page: http://cermsem.univ-paris1.fr/
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Related research
Keywords: FINANCIAL MARKET ; RISK ; GAMES ; PRICES;

Find related papers by JEL classification:
D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
G12 - Financial Economics - - General Financial Markets - - - Asset Pricing
G22 - Financial Economics - - Financial Institutions and Services - - - Insurance; Insurance Companies

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This page was last updated on 2009-12-16.


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