By an adaptation of a method originally invented by G. Kersting [1] for the calculation of the limiting distribution of Markovian processes the central limit theorem (CLT) is proven. Only the case of equal variances is considered.

The contour process of a random binary tree t with n internal nodes is defined as the polygonal function constructed from the heights of the leaves of t (normalized by ). We show that, as n --> [infinity], the limiting contour process is identical in distribution to a Brownian excursion.

We demonstrate how the problem of determining the ask price for electricity swing options can be considered as a stochastic bilevel program with asymmetric information. Unlike as for financial options, there is no way for basing the pricing method on no-arbitrage arguments. Two main situations...

The 1/N investment strategy, i.e. the strategy to split one’s wealth uniformly between the available investment possibilities, recently received plenty of attention in the literature. In this paper, we demonstrate that the uniform investment strategy is rational in situations where an agent is...

Statistical experiments possess the property of adaptivity, if the ignorance of a nuisance parameter does not cause any loss in efficiency. In order to include a large variety of cases, the efficiency is measured in terms of minimax bounds. It is shown that a necessary and sufficient condition...