The concept of non-arbitrage plays an essential role in finance theory. Under certain regularity conditions, the Fundamental Theorem of Asset Pricing states that, in non-arbitrage markets, prices of financial instruments are martingale processes. In this theoretical framework, the analysis of the statistical distributions of financial assets can assist in understanding how participants behave in the markets, and may or may not engender arbitrage conditions. Assuming an underlying Variance Gamma statistical model, this study aims to test, using (...) the FBST - Full Bayesian Significance Test, if there is a relevant price difference between essentially the same financial asset traded at two distinct locations. Specifically, we investigate and compare the behavior of call options on the BOVESPA Index traded at (a) the Equities Segment and (b) the Derivatives Segment of BM&FBovespa. Our results seem to point out significant statistical differences. To what extent this evidence is actually the expression of perennial arbitrage opportunities is still an open question. (shrink)

We prove a strengthened version of Shavrukov’s result on the non-isomorphism of diagonalizable algebras of two $\Sigma _1$ -sound theories, based on the improvements previously found by Adamsson. We then obtain several corollaries to the strengthened result by applying it to various pairs of theories and obtain new non-isomorphism examples. In particular, we show that there are no surjective homomorphisms from the algebra $(\mathfrak {L}_T, \Box _T\Box _T)$ onto the algebra $(\mathfrak {L}_T, \Box _T)$. The case of bimodal diagonalizable algebras (...) is also considered. We give several examples of pairs of theories with isomorphic diagonalizable algebras but non-isomorphic bimodal diagonalizable algebras. (shrink)

We complete a study of the splitting/non-splitting properties of the enumeration degrees below by proving an analog of Harrington’s non-splitting theorem for the enumeration degrees. We show how non-splitting techniques known from the study of the c.e. Turing degrees can be adapted to the enumeration degrees.

A set of natural numbers is called d.r.e. if it may be obtained from some recursively enumerable set by deleting the numbers belonging to another recursively enumerable set. Sacks showed that for each non-recursive recursively enumerable set A there are disjoint recursively enumerable sets B, C which cover A such that A is recursive in neither A ∩ B nor A ∩ C. In this paper, we construct a counterexample which shows that Sacks's theorem is not in general true (...) when A is d.r.e. rather than r.e. (shrink)

Under certain conditions private information can be a source of trade. Arbitrage for instance can occur as a result of the existence of private information. In this paper we want to explicitly model information. To do so we define an ‘information function’. This information function is a mathematical object, also known as a so called ‘wave function’. We use the definition of wave function as it is used in quantum mechanics and we attempt to show the usefulness of this (...) wave function in an economic context. We attempt to answer the following questions. How does the information function relate to private information? How can we use the information function to define the ‘quantity’ of information? How can we use the information function in arbitrage-based option pricing? How can the information function be used in the formulation of a so called Universal Brownian motion? (shrink)

Philosophical writing on probability theory includes a great many articles discussing relationships between rational behavior and an agent’s susceptibility to betting contexts where an overall loss is mathematically inevitable. What the dutch book theorem establishes is that this kind of susceptibility is a consequence of having betting ratios that are in violation of the Kolmogorov probability axioms. In this article it is noted that a general result to rule out arbitrage can be shown to yield the dutch book (...) theorem as a special case. A formal framework is set forth to handle marketplace transactions involving contractual arrangements; and, within that framework, necessary and sufficient conditions are given for ruling out arbitrage. It is then shown that these conditions entail that pricing functions associated with particular kinds of betting contracts must turn out to be probability functions. (shrink)

Philosophical writing on probability theory includes a great many articles discussing relationships between rational behavior and an agent’s susceptibility to betting contexts where an overall loss is mathematically inevitable. What the dutch book theorem establishes is that this kind of susceptibility is a consequence of having betting ratios that are in violation of the Kolmogorov probability axioms. In this article it is noted that a general result to rule out arbitrage can be shown to yield the dutch book (...) theorem as a special case. A formal framework is set forth to handle marketplace transactions involving contractual arrangements; and, within that framework, necessary and sufficient conditions are given for ruling out arbitrage. It is then shown that these conditions entail that pricing functions associated with particular kinds of betting contracts must turn out to be probability functions. (shrink)

This paper addresses arguments that “separability” is an assumption of Bell’s theorem, and that abandoning this assumption in our interpretation of quantum mechanics (a position sometimes referred to as “holism”) will allow us to restore a satisfying locality principle. Separability here means that all events associated to the union of some set of disjoint regions are combinations of events associated to each region taken separately.In this article, it is shown that: (a) localised events can be consistently defined without implying (...) separability; (b) the definition of Bell’s locality condition does not rely on separability in any way; (c) the proof of Bell’s theorem does not use separability as an assumption. If, inspired by considerations of non-separability, the assumptions of Bell’s theorem are weakened, what remains no longer embodies the locality principle. Teller’s argument for “relational holism” and Howard’s arguments concerning separability are criticised in the light of these results. Howard’s claim that Einstein grounded his arguments on the incompleteness of QM with a separability assumption is also challenged. Instead, Einstein is better interpreted as referring merely to the existence of localised events. Finally, it is argued that Bell rejected the idea that separability is an assumption of his theorem. (shrink)

According to a widespread view, the Bell theorem establishes the untenability of so-called ‘local realism’. On the basis of this view, recent proposals by Leggett, Zeilinger and others have been developed according to which it can be proved that even some non-local realistic theories have to be ruled out. As a consequence, within this view the Bell theorem allows one to establish that no reasonable form of realism, be it local or non-local, can be made compatible with the (...) (experimentally tested) predictions of quantum mechanics. In the present paper it is argued that the Bell theorem has demonstrably nothing to do with the ‘realism’ as defined by these authors and that, as a consequence, their conclusions about the foundational significance of the Bell theorem are unjustified. (shrink)

This research is motivated by the program of reverse mathematics and non-standard arguments in second-order arithmetic. Within a weak subsystem of second-order arithmetic ACA0, we investigate some aspects of non-standard analysis related to sequential compactness. Then, using arguments of non-standard analysis, we show the equivalence of the Riemann mapping theorem and ACA0 over WKL0. (© 2007 WILEY-VCH Verlag GmbH & Co. KGaA, Weinheim).

The author argues for the importance of non-Markovian causality in the social sciences because Markovian conditions often cannot be satisfied. Two theorems giving conditions for non-Markovian causes to be transitive are proved. Applications of non-Markovian causality in psychology and economics are outlined.

We show that there is an antichain basis for neither the class of non-potentially closed Borel subsets of the plane under Borel rectangular reducibility nor the class of analytic graphs of uncountable Borel chromatic number under Borel reducibility.

Gärdenfors' impossibility theorem draws attention to certain formal difficulties in defining a conditional connective from a notion of theory revision, via the Ramsey test. We show that these difficulties are not avoided by taking the background inference operation to be non-monotonic.

In the paper, the proof of the non-locality of quantum mechanics, given by Bedford and Stapp (1995), and appealing to the GHZ example, is analyzed. The proof does not contain any explicit assumption of realism, but instead it uses formal methods and techniques of the Lewis calculus of counterfactuals. To ascertain the validity of the proof, a formal semantic model for counterfactuals is constructed. With the help of this model it can be shown that the proof is faulty, because it (...) appeals to the unwarranted principle of “elimination of eliminated conditions” (EEC). As an additional way of showing unreasonableness of the assumption (EEC), it is argued that yet another alleged and highly controversial proof of non-locality of QM, using the Hardy example, can be made almost trivial with the help of (EEC). Finally, a general argument is produced to the effect that the locality condition in the form accepted by Stapp and Bedford is consistent with the quantum-mechanical predictions for the GHZ case under the assumption of indeterminism. This result undermines any future attempts of proving the incompatibility between the predictions of quantum theory and the idea of no faster-than-light influence in the GHZ case, quite independently of the negative assessment of the particular derivation proposed by Stapp and Bedford. (shrink)

For non-additive set functions, the independent product, in general, is not unique and the Fubini theorem is restricted to slice-comonotonic functions. In this paper, we use the representation theorem of Gilboa and Schmeidler (Math Oper Res 20:197–212, 1995) to extend the Möbius product for non-additive set functions to non-finite spaces. We extend the uniqueness result of Ghirardato (J Econ Theory 73:261–291, 1997) for products of two belief functions and weaken the requirements on the marginals necessary to obtain the (...) Fubini property in the product. More importantly, we show that for the Möbius product one side of the Fubini theorem holds for all integrable functions if one of the marginals either is a probability or a convex combination of a chain of unanimity games, i.e., we relax the requirement of slice-comonotonicity and enrich the set of possible applications. (shrink)

Hypersequent calculi can formalize various non-classical logics. In [9] we presented a non-commutative variant of HC for the weakest temporal logic of linear frames Kt4.3 and some its extensions for dense and serial flow of time. The system was proved to be cut-free HC formalization of respective temporal logics by means of Schütte/Hintikka-style semantical argument using models built from saturated hypersequents. In this paper we present a variant of this calculus for Kt4.3 with a constructive syntactical proof of cut elimination.

It is demonstrated that a non Abelian Stokes Theorem is necessary to describe the B3 field of radiation. A simple form of the theorem is build up from the fundamental definition of B3 in O(3) gauge field theory, which is a gauge field theory applied to electrodynamics with an O(3) internal gauge symmetry bases on a complex basis ((1), (2), (3)). The indices (1) and (2) are complex conjugate pairs based on circular polarization, and the index (3) is (...) aligned with the propagation axis of radiation. (shrink)

We use Herbrand’s theorem to give a new proof that Euclid’s parallel axiom is not derivable from the other axioms of first-order Euclidean geometry. Previous proofs involve constructing models of non-Euclidean geometry. This proof uses a very old and basic theorem of logic together with some simple properties of ruler-and-compass constructions to give a short, simple, and intuitively appealing proof.

The paper uses the formalism of indexed categories to recover the proof of a standard final coalgebra theorem, thus showing existence of final coalgebras for a special class of functors on finitely complete and cocomplete categories. As an instance of this result, we build the final coalgebra for the powerclass functor, in the context of a Heyting pretopos with a class of small maps. This is then proved to provide models for various non-well-founded set theories, depending on the chosen (...) axiomatisation for the class of small maps. (shrink)

Quantum Non-Locality and Relativity is recognized as the premier philosophical study of Bell's Theorem and its implication for the relativistic account of space and time. Previous editions have been praised for the remarkable clarity of Maudlin's descriptions of both Bell's theorem and his examination of the potential conflict between the theorem and relativity. The third edition of this text has been carefully updated to reflect significant developments, including a new chapter covering important recent work in the foundations (...) of physics. Foremost among these is Roderich Tumiulka's explicit, relativistic theory that can reproduce the quantum mechanical violation of Bell's inequality. The "Free Will Theorem" of John Conway and Simon Kochen is also discussed, as is the status of locality in the Many Worlds interpretation of quantum theory. The book has also been updated to reflect recent results in information theory. The book introduces philosophers to the relevant physics and demonstrates how philosophical analysis can help to resolve some of the problems, and requires no technical background in Physics. All of the physics is presented from first principles, and as much as possible is presented pictorially"--Provided by publisher. (shrink)

A definable pair of disjoint non-OD sets of reals exists in the Sacks and ????0-large generic extensions of the constructible universe L. More specifically, if a∈2ω is eith...

We extend classical work by Janusz Czelakowski on the closure properties of the class of matrix models of entailment relations—nowadays more commonly called multiple-conclusion logics—to the setting of non-deterministic matrices (Nmatrices), characterizing the Nmatrix models of an arbitrary logic through a generalization of the standard class operators to the non-deterministic setting. We highlight the main differences that appear in this more general setting, in particular: the possibility to obtain Nmatrix quotients using any compatible equivalence relation (not necessarily a congruence); the (...) problem of determining when strict homomorphisms preserve the logic of a given Nmatrix; the fact that the operations of taking images and preimages cannot be swapped, which determines the exact sequence of operators that generates, from any complete semantics, the class of all Nmatrix models of a logic. Many results, on the other hand, generalize smoothly to the non-deterministic setting: we show for instance that a logic is finitely based if and only if both the class of its Nmatrix models and its complement are closed under ultraproducts. We conclude by mentioning possible developments in adapting the Abstract Algebraic Logic approach to logics induced by Nmatrices and the associated equational reasoning over non-deterministic algebras. (shrink)

Carnap gives a definition for a comparative concept of confirmation. For it he uses the notation “MC.” His defined notation is intended to be an explicatum for the explicandum: “the hypothesis h is confirmed by the evidence e equally strongly or more strongly than h′ by e′”.