Is it related to measure theory - Help

[woundedtiger4]

Hi all,
I am not sure that if I have posted this thread on right place but as the subject is related to the stochastic & measure theory therefore I am posting it here.

Well, my question is that in the subject "Preferences, Optimal Portfolio Choice, and Equilibrium" the tutor has used the word "equilibrium" ( http://www.lse.ac.uk/resources/calendar/courseGuides/MA/2011_MA418.htm ) & I don't understand that in what context the equilibrium has been used. Is it game theory's equilibrium defining some strategy for the formation of asset pricing or is it the economic equilibrium such as market equilibrium or is it dynamic stochastic general equilibrium?

I found the definition of equilibrium by the same tutor at http://www.imar.ro/~purice/Conferinta-AMaMeF-Pitesti/Talks/Danilova.pdf
which states that:
http://img403.imageshack.us/img403/5082/20033650.jpg
It seems more suitable definition from measure theory's point of view as to me it look like some sort of space equipped with measure, but I don't understand this definition, can someone please help me out?
With loads of regards.

 

[math771]

Hi there,

I am not an expert in this field, but from my understanding, the term "equilibrium" in this context refers to a balance or stability between different factors. In the subject of "Preferences, Optimal Portfolio Choice, and Equilibrium," it could refer to the balance between an individual's preferences and their optimal portfolio choice, or the balance between different economic forces in determining asset pricing.

The definition you shared from the tutor's presentation seems to be related to mathematical concepts of equilibrium, such as in measure theory. It could also be referring to the concept of equilibrium in game theory, where players reach a stable outcome through strategic decision making.

I suggest reaching out to the tutor or consulting with someone who has expertise in this subject for a more in-depth explanation. Hope this helps!

 

[fresh_42]

It is difficult to say if you do not provide the equations and their meaning.
In a portfolio you could have an equilibrium between personal risk function and giving risks by the composition, a market equilibrium for the whole portfolio, i.e. fond, an equilibrium between risky papers and safe investments according to some evaluation function or similar.

I do not think it has to do with measure theory, but this can't be said in such a generality.