Optimal Insurance with Background Risk under the Ambiguity and Belief Heterogeneity Structure

In this paper, we discuss the optimal insurance in the presence of background risk while the insured is ambiguity averse and there exists belief heterogeneity between the insured and the insurer. We give the optimal insurance contract when maxing the insured’s expected utility of his/her remaining wealth under the smooth ambiguity model and the heterogeneous belief form satisfying the MHR condition. We calculate the insurance premium by using generalized Wang’s premium and also introduce a series of stochastic orders proposed by [1] to describe the relationships among the insurable risk, background risk and ambiguity parameter. We obtain the deductible insurance is the optimal insurance while they meet specific dependence structures.

Ambiguity Resolution in Direction of Arrival Estimation with Linear Antenna Arrays Using Differential Geometry

Linear antenna arrays(LAs)can be used to accurately predict the direction of arrival(DOAs)of various targets of interest in a given area.However,under certain conditions,LA suffers from the problem of ambiguities among the angles of targets,which may result inmisinterpretation of such targets.In order to cope up with such ambiguities,various techniques have been proposed.Unfortunately,none of them fully resolved such a problem because of rank deficiency and high computational cost.We aimed to resolve such a problem by proposing an algorithm using differential geometry.The proposed algorithm uses a specially designed doublet antenna array,which is made up of two individual linear arrays.Two angle observation models,ambiguous observation model(AOM)and estimated observation model(EOM),are derived for each individual array.The ambiguous set of angles is contained in the AOM,which is obtained from the corresponding array elements using differential geometry.The EOM for each array,on the other hand,contains estimated angles of all sources impinging signals on each array,as calculated by a direction-finding algorithm such as the genetic algorithm.The algorithm then contrasts the EOM of each array with its AOM,selecting the output of that array whose EOM has the minimum correlation with its corresponding AOM.In comparison to existing techniques,the proposed algorithm improves estimation accuracy and has greater precision in antenna aperture selection,resulting in improved resolution capabilities and the potential to be used more widely in practical scenarios.The simulation results using MATLAB authenticates the effectiveness of the proposed algorithm.

Efficient hedging under ambiguity in continuous time

It is well known that the minimal superhedging price of a contingent claim is too high for practical use.In a continuous-time model uncertainty framework,we consider a relaxed hedging criterion based on acceptable shortfall risks.Combining existing aggregation and convex dual representation theorems,we derive duality results for the minimal price on the set of upper semicontinuous discounted claims.