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A predictive approach to generalized arithmetic means - MaRDI portal

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A predictive approach to generalized arithmetic means

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Publication:6340796

arXiv2005.07770MaRDI QIDQ6340796

Author name not available (Why is that?)

Publication date: 15 May 2020

Abstract: The goal of this note is to provide a geometric setting in which generalized arithmetic means are best predictors in an appropriate metric. This characterization provides a geometric interpretation to the concept of certainty equivalent. Besides that, in this geometric setting there also exists the notion of conditional expectation as best predictor given prior information. This leads to a notion of conditional preference and to the notion of conditional certainty equivalent, which turns out to be consistent with the notion of fair pricing.












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