Robust Financial Bubbles
classification
💱 q-fin.MF
keywords
robustbubblefinancialbubblescaseconceptconcreteconsistent
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We study the concept of financial bubble in a market model endowed with a set of probability measures, typically mutually singular to each other. In this setting we introduce the notions of robust bubble and robust fundamental value in a consistent way with the existing literature in the case a unique prior exists. The notion of no dominance is also investigated under the uncertainty framework. Finally, we provide concrete examples illustrating our results.
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