NEW! Working Paper: A Nonlinear Sandwich Theorem


We provide a Sandwich Theorem (König (1972)) for positively homogeneous functionals that satisfy additivity only on a restricted domain. Our relaxation of additivity is based on a binary relation called convex-conic symmetric preorder, whereby additivity is restricted to all couples of elements that belong to such relation. We then study applications of our nonlinear Sandwich Theorem, proving extension and envelope representation results. Finally, we consider some applications to comonotonicity, a key property in decision theory, risk measurement, and the theory of risk sharing.

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Lorenzo Maria Stanca
Lorenzo Maria Stanca
Assistant Professor of Economics

I am an Assistant Professor of Economics at Collegio Carlo Alberto and University of Turin, ESOMAS department.