Generalized Multiplicative Risk Apportionment

On (anti-)multiplicative Generalized Derivations

Let R be a semiprime ring and let F, f : R → R be (not necessarily additive) maps satisfying F (xy) = F (x)y + xf(y) for all x, y ∈ R. Suppose that there are integers m and n such that F (uv) = mF (u)F (v) + nF (v)F (u) for all u, v in some nonzero ideal I of R. Under some mild assumptions on R, we prove that there exists c ∈ C(I) such that c = (m + n)c2, nc[I, I] = 0 and F (x) = cx for all x ∈...

Superstability of Generalized Multiplicative Functionals

LetX be a set with a binary operation ◦ such that, for each x, y, z ∈ X, either x ◦y ◦z x ◦z ◦y, or z◦ x◦y x◦ z◦y . We show the superstability of the functional equation g x◦y g x g y . More explicitly, if ε ≥ 0 and f : X → C satisfies |f x ◦ y − f x f y | ≤ ε for each x, y ∈ X, then f x ◦ y f x f y for all x, y ∈ X, or |f x | ≤ 1 √1 4ε /2 for all x ∈ X. In the latter case, the constant 1 √ 1 4...

Prudence with Multiplicative Risk

Multiplicative Background Risk

Multiplicative Background Risk by Günter Franke, Harris Schlesinger, Richard C. Stapleton We consider random wealth of the multiplicative form x ỹ, where x and ỹ are statistically independent random variables. We assume that x  is endogenous to the economic agent, but that ỹ is an exogenous and uninsurable background risk. Our main focus is on how the randomness of ỹ affects risk-taking beha...

An efficient method for generalized linear multiplicative programming problem with multiplicative constraints

We present a practical branch and bound algorithm for globally solving generalized linear multiplicative programming problem with multiplicative constraints. To solve the problem, a relaxation programming problem which is equivalent to a linear programming is proposed by utilizing a new two-phase relaxation technique. In the algorithm, lower and upper bounds are simultaneously obtained by solvi...