Pseudo-Arbitrage - A new Approach to Pricing and Hedging in Incomplete Markets

We develop a new approach to pricing and hedging contingent claims in incomplete markets framework the no-arbitrage arguments that have been developed in complete markets leads us to defining the concept we are able to extend the no-arbitrage ideo to a world of incomplete markets in such a way thet beased on a concept of risk compatible with the axioms of Artzner et al. we can derive unique prices and corresponding optimal hedging strategies without invoking specific assumptions on preferences (other than monotonicity and risk aversion)