A Doob-Meyer decomposition under model ambiguity: the case of compactness


Por: Treviño-Aguilar E.

Publicada: 1 ene 2021
Categoría: Statistics and probability

Resumen:
We consider families of equivalent probability measures Q with a property related to concepts known in the literature under different names such as rectangularity or multiplicative stability. For the problems considered in this paper such a property yields dynamical consistency. We prove under a weak-compactness assumption with general filtrations and continuous processes that all semimartin-gales have an additive decomposition as the sum of a predictable non-decreasing process and a universal local supermartingale, by this concept we mean a process that is a local supermartingale with respect to each element of Q. We also show that processes having a supermartingale property with respect to a superadditive nonlinear conditional expectation associated to the family Q are always semimartingales under weak-compactness. These results are relevant in stochastic optimization problems including optimal stopping under model ambiguity.

Filiaciones:
Treviño-Aguilar E.:
 Instituto de Matemáticas, Unidad Cuernavaca, Universidad Nacional Autónoma de México, Av. Universidad s/n, Cuernavaca, Morelos CP 62210, Mexico
ISSN: 19800436





ALEA-LATIN AMERICAN JOURNAL OF PROBABILITY AND MATHEMATICAL STATISTICS
Editorial
Instituto Nacional de Matematica Pura e Aplicada, ESTRADA DONA CASTORINA 110, JARDIM BOTANICO, RIO DE JANEIRO, 22460-32, BRAZIL, Brasil
Tipo de documento: Article
Volumen: 18 Número: 1
Páginas: 617-634
WOS Id: 000640205300002
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