The Arbitrage Pricing Theorem with Incomplete Preferences

David Kelsey and Erkan Yalcin

GE, Growth, Math methods from EconWPA

Abstract: This paper proves existence of equilibrium and the arbitrage pricing theorem for an asset exchange economy, where the individual's preferences may be incomplete or intransitive. This extends existing results to a more general set of individual preferences. We also prove the arbitrage pricing theorem for a theory of choice under uncertainty by Bewley [1986]. These preferences model Knightian uncertainty by allowing for the possibility that preferences are incomplete.

Keywords: Incomplete Preferences; Equilibrium Existence; Arbitrage Pricing Theorem; Knightian Uncertainty (search for similar items in EconPapers)
JEL-codes: C62 D52 D81 G12 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cfn and nep-mic
Date: 2004-01-22
Note: Type of Document - PDF; prepared on Windows Me; pages: 19
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http://129.3.20.41/eps/ge/papers/0401/0401002.pdf (application/pdf)

Related works:
Journal Article: The arbitrage pricing theorem with incomplete preferences (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:wpa:wuwpge:0401002

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