Showing papers in "Journal of Economic Theory in 1971"

TL;DR: In this paper, the authors considered the continuous-time consumption-portfolio problem for an individual whose income is generated by capital gains on investments in assets with prices assumed to satisfy the geometric Brownian motion hypothesis, which implies that asset prices are stationary and lognormally distributed.

TL;DR: In this article, the authors present a number of theorems on diversification in the order of decreasing generality, which are applicable to problems outside the domain of decision theory.

TL;DR: In this article, the optimal allocation of a given urban land area between the generation of traffic and the carrying of traffic is analyzed, in the simplest possible setting, and the proportion of land allocated to transportation is a decreasing, concave function of distance from the center of the city.

TL;DR: In this article, Arrow has shown that the Pontryagin condition is sufficient for a control to be optimal if the value of the Hamiltonian maximized over the controls is concave in the state variables.

TL;DR: In this paper, the decision problem of a consumer who must make regular allocations of wealth to consumption expenditures and to risky investment is considered, and sufficient conditions for the consumer's multi-period utility function to exhibit both decreasing absolute and increasing relative risk aversion are determined.

TL;DR: In this article, the authors apply Bayesian analysis to an oligopoly model known as the kinked demand curve, which is a theoretical dilemma that is not uncommon in the social sciences (Stigler 1978).

TL;DR: In this article, the authors show that under the appropriate conditions the introduction of a random component to demand in a duopolistic (or more generally oligopolistic) market has the competitive effect of increasing stability.

TL;DR: In this article, the impact of externalities on the existence of competitive equilibria is investigated, and it is shown that, even if externalities exist, the information structure may be such that (b) and (c) still hold.