What are the challenges and limitations of using stochastic processes in real-world applications? How do model assumptions affect the validity of the results?

Dec 19, 2024 ... Although Thermodynamics, Information Theory, Brownian motion and Stochastic Physical Process share commonalities in handling energy, information ... This paper studies the existence of expectations equilibria for message processes on stochastic exchange environments. A message process which permits the ... Aug 28, 2020 ... ... process' informational content, but it does not address how this ... process (partly regular, partly stochastic), the golden mean process. an information process with stochastic volatility. JEL classification: G12 ... Informational Con0 tent of Implied Volatility, Review of Financial ... Jul 6, 2021 ... Asymmetric information may stem from, e.g., the observation of different stochastic processes or partial knowledge of the structure of the game ... Apr 28, 2024 ... It is shown that Bayesian updates can be characterized as additional informational drift in the underlying asset's stochastic process. ... Stochastic Markov Processes in Reliability”, (with A. Ay, J. Landon and S. Ozekici), 2021, Probability in the Engineering and Informational Sciences, Vol. Renewal processes are broadly used to model stochastic behavior consisting of isolated events separated by periods of quiescence, whose durations are ... stochastic process. Mutual information based distance measure can thus be used to compare texts written by different authors or to build phylogenies of ... ... Informational Risks, Peking Univ. Ser. Math. 5 ... Jeanblanc, No-arbitrage under additional information for thin semimartingale models, Stochastic Process.