Arbitrage and the Dutch Book Theorem

Journal of Philosophical Research 22:477-482 (1997)
  Copy   BIBTEX


Philosophical writing on probability theory includes a great many articles discussing relationships between rational behavior and an agent’s susceptibility to betting contexts where an overall loss is mathematically inevitable. What the dutch book theorem establishes is that this kind of susceptibility is a consequence of having betting ratios that are in violation of the Kolmogorov probability axioms. In this article it is noted that a general result to rule out arbitrage can be shown to yield the dutch book theorem as a special case. A formal framework is set forth to handle marketplace transactions involving contractual arrangements; and, within that framework, necessary and sufficient conditions are given for ruling out arbitrage. It is then shown that these conditions entail that pricing functions associated with particular kinds of betting contracts must turn out to be probability functions.



    Upload a copy of this work     Papers currently archived: 76,400

External links

Setup an account with your affiliations in order to access resources via your University's proxy server

Through your library

Similar books and articles

Arbitrage and the Dutch Book Theorem.Robert Titiev - 1997 - Journal of Philosophical Research 22:477-482.
Generalized probabilism: Dutch books and accuracy domi- nation.J. Robert G. Williams - 2012 - Journal of Philosophical Logic 41 (5):811-840.
Diagnosis of Ailing Belief Systems.Robert Titiev - 1993 - Journal of Philosophical Research 18:277-283.
Conditional Probability and Dutch Books.Frank Döring - 2000 - Philosophy of Science 67 (3):391 - 409.
Diagnosis of Ailing Belief Systems.Robert Titiev - 1993 - Journal of Philosophical Research 18:277-283.
Dutch books and agent rationality.Daniel Silber - 1999 - Theory and Decision 47 (3):247-266.
Is there a dutch book argument for probability kinematics?Brad Armendt - 1980 - Philosophy of Science 47 (4):583-588.
Countable additivity and the de finetti lottery.Paul Bartha - 2004 - British Journal for the Philosophy of Science 55 (2):301-321.
A Dutch Book Theorem for Quantificational Credences.Benjamin Lennertz - 2017 - Ergo: An Open Access Journal of Philosophy 4.


Added to PP

10 (#890,548)

6 months
1 (#452,962)

Historical graph of downloads
How can I increase my downloads?

Citations of this work

No citations found.

Add more citations

References found in this work

No references found.

Add more references