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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 [Broken] ) & 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 [Broken]

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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# Is it related to measure theory - Help

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