Minor Issues in *Asset Pricing with Incomplete Markets*

[spspitze]

Hello again. Some minor typos in Asset Pricing with Incomplete Markets

1. For the pessimists' beliefs, you copied the optimists' beliefs.

2. For price_optimistic_beliefs() (and pessimistic) you specify tol=1e-16 in during inputs but the code compares to 1e-12. Also there seems to be no need to pre-assign p_old before the loop starts.

3. I didn't quite get why the price of the asset had to be weakly greater than 1, as the code assumes. What's the intuition for this restriction?

Thanks as always.

[jstac]

Thanks @spspitze, much appreciated. @Harveyt47, would you mind to take a look?

[Harveyt47]

Hi @jstac yep I'll have a look at it now.

[Harveyt47]

@spspitze is right the pessimists transition matrix here should be [[2/3, 1/3], [2/3, 1/3]] I believe.

Also we do not use tol in both price_optimistic_beliefs() and price_pessimistic_beliefs(). I'll make a PR