Is it related to measure theory - Help

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The discussion centers on the concept of "equilibrium" as used in the context of "Preferences, Optimal Portfolio Choice, and Equilibrium." Participants debate whether this equilibrium refers to game theory, economic market equilibrium, or dynamic stochastic general equilibrium. The tutor's definition of equilibrium suggests a connection to measure theory, yet there is uncertainty about its applicability. Ultimately, the consensus leans towards the idea that while measure theory may provide insights, the term "equilibrium" is more closely related to economic and game theory contexts.

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woundedtiger4
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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.
 
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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.
 

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