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Bibliographic Details
Main Authors: Santos, Samuel Solgon, Righi, Marcelo Brutti, Horta, Eduardo de Oliveira
Format: Preprint
Published: 2022
Subjects:
Online Access:https://arxiv.org/abs/2212.13864
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author Santos, Samuel Solgon
Righi, Marcelo Brutti
Horta, Eduardo de Oliveira
author_facet Santos, Samuel Solgon
Righi, Marcelo Brutti
Horta, Eduardo de Oliveira
contents Risk measures satisfying the axiom of comonotonic additivity are extensively studied, arguably because of the plethora of results indicating interesting aspects of such risk measures. Recent research, however, has shown that this axiom is incompatible with central properties in specific contexts. In this paper, we present a literature review of these incompatibilities. In addition, we use the Choquet representation of comonotonic additive risk measures to show they cannot be surplus invariant.
format Preprint
id arxiv_https___arxiv_org_abs_2212_13864
institution arXiv
publishDate 2022
record_format arxiv
spellingShingle The limitations of comonotonic additive risk measures: a literature review
Santos, Samuel Solgon
Righi, Marcelo Brutti
Horta, Eduardo de Oliveira
Risk Management
Risk measures satisfying the axiom of comonotonic additivity are extensively studied, arguably because of the plethora of results indicating interesting aspects of such risk measures. Recent research, however, has shown that this axiom is incompatible with central properties in specific contexts. In this paper, we present a literature review of these incompatibilities. In addition, we use the Choquet representation of comonotonic additive risk measures to show they cannot be surplus invariant.
title The limitations of comonotonic additive risk measures: a literature review
topic Risk Management
url https://arxiv.org/abs/2212.13864