Artinian commutative ring is Noetherian theorem Created 2026-09-28 Updated 2026-10-06
Every commutative Artinian ring is Noetherian. Its nilradical is nilpotent by the nilradical of a commutative Artinian ring, and the Chinese remainder theorem identifies the reduced quotient with the finite product of the residue fields at the finitely many maximal ideals. Each is an Artinian module over that product of fields and hence a finite-dimensional vector space. The finite filtration by these layers makes every ideal finitely generated.
Bounded bilinear form Created 2026-09-24 Updated 2026-10-14
A bilinear form on a real normed vector space is bounded when one constant satisfies
This is an upper bound on the magnitude of every pairing. It says nothing about the sign of and does not require a symmetric bilinear form. The chosen norm is part of the hypothesis. Boundedness is equivalent to joint continuity, as shown by the boundedness criterion for a bilinear form.[ref]
For example, on with the Euclidean norm, the bilinear forms
both satisfy the upper bound with , by the Cauchy-Schwarz inequality. Yet their quadratic forms are and : the former takes negative values and the latter vanishes at the nonzero vector . Thus neither is a coercive bilinear form. The latter is also a degenerate bilinear form, whereas is nondegenerate. Boundedness controls size, not positivity or loss of directions.
Every bilinear form on a real or complex finite-dimensional vector space equipped with any norm is bounded. In coordinates, write using its matrix of a bilinear form. The Cauchy-Schwarz inequality gives , with the spectral norm; finite-dimensional equivalence of norms transfers this to the chosen norm. The conclusion concerns each fixed norm and fixed bilinear form: it does not supply a single constant for an arbitrary family of matrices or changing dimensions.
On an infinite-dimensional vector space, the upper bound is an additional condition. Equip the finitely supported sequences with the norm inherited from the l2 sequence space and set
Each pairing is a finite sum, so this is a well-defined bilinear form. For the basis vector , however, and ; no finite works. It is even a coercive bilinear form with , since . Consequently coercivity alone does not imply boundedness on a normed vector space. This example uses , which is not a Hilbert space; it does not define this pairing on all of the l2 sequence space.
A bounded bilinear form defines a bounded linear operator by , where is the continuous dual space. Its operator norm is the smallest admissible :
This converts an upper bound for pairings into an upper bound for a linear map taking an unknown vector to a linear functional.
Brouwer fixed-point theorem Created 2026-09-24 Updated 2026-10-14
The Brouwer fixed-point theorem says that every continuous map has a fixed point when is a nonempty compact set and a convex set in a finite-dimensional vector space over the real numbers. Equivalently, take for a finite , with the usual Euclidean space structure: there is some such that . The conclusion guarantees at least one fixed point, without asserting uniqueness or telling us how quickly to find one. [ref]
The standard pictures are a closed ball, including a closed unit ball, and a simplex. A filled disk qualifies; its bounding circle alone does not. A probability simplex also qualifies even though its dimension is smaller than that of its ambient Euclidean space. The hypotheses have concrete meanings: being a convex set keeps every line segment between allowed points inside , and compactness prevents escape or loss of a limiting point. In Euclidean space, the Heine-Borel theorem identifies compact sets with closed sets that are bounded sets. Crucially, every output must belong to the same as the input.
For a fully computable example, let be the filled unit disk. Apply a counterclockwise quarter-turn rotation, shrink by , and add a translation:
This affine map is a continuous map. Because the rotation preserves the Euclidean norm, the triangle inequality gives, for every ,
Thus the whole image lies strictly inside . More precisely, it is a disk of radius centred at . This containment check is what makes the Brouwer fixed-point theorem applicable; a formula being a continuous map by itself would not suffice.
The fixed point can now be found by a system of linear equations:
Indeed, substitution gives . Its Euclidean norm is , safely inside . The figure shows arrows from sample inputs to their outputs; an arrow disappears at the fixed point because the displacement vanishes there.
Figure 1.
A quarter-turn, shrinking, and translation keep a disk inside itself
. Details.
Repeated iterations of a map happen to succeed for this example. Starting at and setting gives , , and . Subtracting the fixed point equation yields , so the Euclidean distance to shrinks by exactly each step. This extra fact follows from the contraction mapping property and the Banach fixed-point theorem. It is additional information beyond the Brouwer fixed-point theorem.
The distinction becomes visible with two simpler continuous maps of the same disk. The pure rotation has exactly one fixed point, , since and force both to vanish. Yet iterations of a map starting at here cycle through , , and forever. Their Euclidean distance from stays one, so there is no convergence in a metric space. The reflection has an entire line segment of fixed points, namely . Starting off that line segment produces an alternating pair. Existence, uniqueness, and convergence of iterations of a map are separate questions.
Figure 2.
Existence of a fixed point does not imply uniqueness or convergence of iteration
. Details.
Removing hypotheses changes the answer. Restrict the same quarter-turn rotation to the circle . It remains a continuous map into that compact set, but its only possible fixed point, , has been removed. The circle is not a convex set. Conversely, on the unbounded convex set , the translation has no fixed point; on the open interval , also has none. Neither domain is a compact set. The finite-dimensional closed ball statement should likewise not be extended to arbitrary infinite-dimensional vector spaces, where a closed ball need not be a compact set.
The one-dimensional version explains the connection to the intermediate value theorem. For a continuous map , put . Then and , so the intermediate value theorem gives for some . In higher dimensions, the Brouwer fixed-point theorem supplies a corresponding existence principle when this scalar sign argument is unavailable. Its practical value is ensuring that a proposed equation has a solution once a suitable domain is found; it supplies no general promise of a fast algorithm.
A useful application is positive matrix eigenvector from simplex normalization: rescale the output of a strictly positive matrix to make its entries sum to one. For example, take
On this probability simplex, has entry sum , so the normalized continuous map is . Both entries are positive and sum to one, keeping the image inside the probability simplex. Its fixed point equation is , hence . Consequently satisfies : a strictly positive eigenvector with eigenvalue . In larger dimensions, the Brouwer fixed-point theorem guarantees the corresponding positive eigenvector without requiring us to solve a system of linear equations in advance. The fixed point expresses preservation of relative weights, rather than preservation of their unnormalized size.
Proofs can be approached through the no-retraction theorem or Sperner's lemma. In the latter approach, increasingly fine triangulations locate approximate fixed points; compactness supplies a convergent subsequence, and continuous maps turn its limit into an exact fixed point. [ref]
A primary historical reference is L. E. J. Brouwer's 1911 paper Über Abbildung von Mannigfaltigkeiten, whose digitized original is hosted by Zenodo under DOI 10.1007/BF01456812. This gives a direct route to the early literature behind the Brouwer fixed-point theorem. [ref]
Coercive bilinear form Created 2026-09-24 Updated 2026-10-14
A real bilinear form on a normed vector space is coercive when there is one constant such that
The lower bound uniformly controls every direction in the chosen norm. Unlike the upper bound defining a bounded bilinear form, it forces positive diagonal values at every nonzero vector. No symmetry is assumed. For complex Hilbert spaces, the usual analogue uses a sesquilinear form and ; it is not the same assertion for a complex bilinear form.
A concrete bounded and coercive example on , with the Euclidean norm, is
Its quadratic form is
The best lower constant is , attained at . Nevertheless, and , so coercivity does not imply a symmetric bilinear form. The symmetric part of a matrix determines , while the skew-symmetric matrix part changes mixed pairings without changing . This is the symmetric and alternating parts of a bilinear form decomposition.[ref]
For the upper constant, direct multiplication gives . Its eigenvalues are , so the optimal upper constant, the spectral norm, is . The two constants answer different questions: how large a mixed pairing can be, and how small a self-pairing can be relative to squared norm.
Figure 1.
Bounded saddle and flat-direction quadratic forms contrasted with a uniformly coercive bowl
. Details.
The plotted quadratic forms show the mechanism: descends in one direction, leaves one direction uncontrolled, and controls both. These are self-pairings; their level sets cannot reveal the skew-symmetric matrix part. Calling a quadratic energy here refers to this diagnostic quantity, not to a claim that a nonsymmetric equation comes from minimizing an energy functional.
On a real finite-dimensional vector space with any norm, strict positivity for every nonzero does imply coercivity. Indeed the quadratic form is continuous, and its positive minimum on the compact unit sphere supplies . If is also a symmetric bilinear form, this is positive definiteness. For general , it is the symmetric and alternating parts of a bilinear form decomposition that isolates the positive part. Switching between equivalent norms preserves coercivity, but usually changes its constant.
The infinite-dimensional vector space distinction is explicit on the real l2 sequence space:
The Cauchy-Schwarz inequality gives boundedness with , and for every nonzero vector. But with , so no positive works. On the span of , the best lower constant is : each finite restriction is coercive, but the control disappears as grows. Strict positivity is therefore weaker than a uniform lower bound.
The practical payoff is a stability estimate for a weak formulation. Assume is a real Hilbert space, is both a bounded bilinear form and a coercive bilinear form, and the load is a bounded linear functional. The Lax-Milgram theorem gives a unique satisfying for all , including nonsymmetric .[ref] The dual norm measures load size. Testing with gives the short energy estimate
For the bound holds directly; otherwise divide by . Subtracting the equations for two loads and using the same argument gives . Thus a positive lower constant limits the response to load errors. The upper bound and completeness of the Hilbert space enter the existence theorem; the estimate itself uses the lower bound and the load's dual norm.
For the displayed matrix , take . Then for every means , not , with this ordering of the bilinear form. Since ,
For , the exact response is and . For , it is , with norm . The actual maximal amplification is the operator norm : the coercivity estimate is valid but need not be sharp for a nonsymmetric bilinear form.
Figure 2.
Solutions for unit loads lie inside the coercivity bound, and response grows at most linearly with load norm
. Details.
Degenerate bilinear form Created 2026-09-24 Updated 2026-10-14
A bilinear form is degenerate if some nonzero vector pairs to zero with every vector on at least one side. For a symmetric bilinear form or an alternating bilinear form, this says its radical of a bilinear form contains a nonzero vector. On a finite-dimensional vector space, it is equivalent to a singular matrix of a bilinear form, or .
For , . The nonzero vector is invisible to every pairing, and changing never changes . The quadratic form therefore has two parallel lines as its unit level set. This is a lost direction, a stronger condition than being an isotropic vector: with , but .
Finite-dimensional continuation criterion Created 2026-09-24 Updated 2026-10-14
Under the Picard-Lindelöf theorem's hypotheses on , extend a solution of a differential equation as far as possible, to a maximal interval . If , the time-state trajectory must eventually leave every compact subset of . Equivalently, confinement near to one compact subset of permits continuation past . See Teschl, Section 2.6, Lemma 2.14 and Corollaries 2.15–2.16, pp. 52–53.
The domain restriction matters even for a bounded trajectory. Restrict , , to . Then exists in this domain only for ; at its values are . As , it approaches the excluded boundary point while remaining bounded. Its trajectory cannot fit into any compact subset of near that endpoint. This is escape from a finite domain, without finite-time blowup in norm. Enlarging the domain to gives the same formula for every real .
Conversely, , , stays in the compact set for every fixed . Its growing exponential function is unbounded over the entire future, but has no finite-time blowup. At , its largest value on is only . The relevant question is boundedness before each finite endpoint, rather than one bound valid forever. The tangent function in the diagram under the Picard-Lindelöf theorem illustrates the other possibility: its norm escapes every bound before .
This criterion is useful because an estimate can secure continuation without an explicit formula. In a finite-dimensional vector space, a bounded closed ball is compact; a bounded state trajectory therefore supplies the needed compact set when its time-state closure is inside the domain. That final proviso prevents mistaking a domain boundary for finite-time blowup.
A common sufficient estimate comes from global Lipschitz continuity in the state. Assume for an open time interval , with continuous and a Lipschitz constant valid for all states on each compact time interval under consideration. For , let , finite by continuity. Then , and the Gronwall inequality gives, for wherever the solution already exists,
For instance, , , has and the exact solution , attaining this estimate; at the value is . Finite bounds of this kind give continuation throughout , with the analogous estimate backwards in time. When , this gives existence for all real times. If has a finite endpoint, it gives no continuation beyond that prescribed domain. The underlying linear-growth criterion is [ref].
A brief explanation of the continuation mechanism suffices: within the protecting compact set, the continuous function is bounded, say by . The integral equation yields near the finite endpoint, so has a limit . The protecting compact set puts inside . Restarting the initial value problem there and using local uniqueness joins the trajectories.
Every finite-dimensional vector space subspace of a normed vector space is closed. Coordinates in a finite basis identify it homeomorphically with a finite-dimensional scalar space; it is therefore complete, and every complete subspace of a metric space is closed.
On a finite-dimensional vector space equipped with a norm, the weak topology and norm topology coincide. The weak topology is no finer because every element of the dual is norm-continuous. Conversely, finitely many coordinate functionals in a basis control the norm, so every sufficiently small basic weak neighbourhood lies in a prescribed norm ball.
Finite field Created 2026-09-24 Updated 2026-10-13
A finite field is a field with finitely many elements: addition, subtraction, multiplication, and division by a nonzero element all stay inside a finite collection. Write , or , for a finite field with elements. The subscript counts elements; it does not prescribe modular arithmetic modulo . The field with four elements is the smallest example where that distinction matters.
Every finite field has size , where is a prime number and is a positive integer. To see the counting mechanism, use its prime field : the finite field is a finite-dimensional vector space over . For a basis , every element has exactly one expression
Each coefficient has choices, so there are expressions. Here is the characteristic of a field and is the dimension of a vector space. Thus sizes are possible, whereas are not prime powers and cannot be finite field sizes.
Conversely, every prime power occurs, and any two finite fields of the same size admit a field isomorphism. These are classification statements, beyond the counting argument. See Conrad's Theorems 1.5, 2.2, and 2.7.[ref] Uniqueness means the arithmetic agrees after relabeling; it does not choose a basis, an irreducible polynomial for a quotient ring representation, or a particular field isomorphism. Even for the field with four elements, exchanging and preserves the arithmetic.
The appeal for coding theory is exact, finite arithmetic with reliable division: polynomial interpolation and linear algebra work over a finite alphabet. A Reed-Solomon code represents messages by polynomials and adds redundancy by evaluating them at several distinct finite field elements. Forney's MIT notes develop this arithmetic as preparation for such error-correcting codes.[ref] In cryptography, finite fields likewise supply exact arithmetic on finitely many symbols, with operations that can be implemented using bits.
Historically, Évariste Galois published work on finite fields beyond prime fields in 1830, constructing them by adjoining elements satisfying irreducible polynomials over prime fields. Conrad's historical account also records E. H. Moore's 1893 terminology, from which the name Galois field and notation descend.[ref]
For an explicit basis extension in , start with , where . Its linear span is the line . Adding preserves linear independence, because is outside that line, and gives a basis. Every vector has the finite linear combination
The vector cannot be added while preserving linear independence: it is already in the linear span. Many choices outside the line work, so maximality does not select a unique basis.
Figure 1.
Extending one independent vector to a basis of the real plane
. Left: u spans only the blue line, and 2u is redundant. Right: adding w outside that line yields a basis spanning the entire plane. This finite-dimensional illustration is not a proof of basis existence in arbitrary dimension. Details.
For a finite-dimensional vector space with a supplied finite spanning set, a greedy algorithm scans the list, retaining each vector precisely when it is outside the linear span of those already retained. Starting with a linearly independent , the same scan adjoins only the needed vectors. Retained vectors remain linearly independent, and every skipped vector is in the final linear span, so the result is a basis containing . Finite reasoning needs no axiom of choice.
For an arbitrary vector space, this finite stopping argument is unavailable. Accepting Zorn's lemma asserts existence of a maximal element once every chain in a partial order has an upper bound; it supplies no general computational recipe. Over ZF, Zorn's lemma, the axiom of choice and the well-ordering theorem are equivalent. Particular infinite vector spaces can still have explicit bases, such as for the vector space of univariate polynomials over a specified field; infinity alone does not force a nonconstructive argument.[ref]
Finite-valued infimal convolution Created 2026-10-07 Updated 2026-10-14
If two nonnegative finite-valued convex functions are defined on all of a finite-dimensional space, their infimal convolution is finite, convex and continuous everywhere. Convex perturbation duality then gives strong duality and dual attainment at every argument. It does not require or imply attainment of the primal decomposition infimum.
More precisely, let be finite everywhere and write . Nonnegativity supplies a lower bound, while the two trial splits and give
Mixing nearly optimal splits proves convexity, and continuity of a convex function applies because the effective domain is the entire finite-dimensional vector space. These statements concern the optimized value, rather than existence of an optimal split. For the continuity theorem and dual attainment under the equality constraint , see Bertsekas, Convex Optimization Theory: A Summary, Propositions 1.3.11 and 5.3.3(a). The equality has a feasible point in the whole space for every , and the displayed bound makes its optimal value finite.
A finite value without any optimal split. On , take the convex functions and . Both are nonnegative and finite everywhere, but
for every . The splits have costs , yet the exponential function is strictly positive at every finite . No split attains the infimum. The value function is even constant and differentiable; regularity of the value function does not prevent optimizing splits from escaping to infinity. For example, gives costs approximately , and .
A sufficient extra condition for attainment at a fixed is that be a coercive function, meaning it tends to as . Under the finite-valued assumptions it is a continuous function, so a sufficiently large closed ball contains a global minimum by the extreme value theorem. If this cost is also a strictly convex function, the optimal split is unique. The quadratic example above satisfies both conditions; the exponential function example does not satisfy coercivity.
Nonnegativity is sufficient, not necessary: finite lower bounds , would give by the same argument. Removing all lower-bound control can lose finiteness even for finite convex functions: and give , hence . Nor does finiteness alone guarantee differentiability: choosing gives by the triangle inequality and the split .
Heine-Borel theorem Created 2026-09-29 Updated 2026-10-14
For every finite , a subset of Euclidean space is compact if and only if it is a closed set and a bounded set. Here closed means closed in the ambient Euclidean space, not merely in itself, and the bounded set condition uses the Euclidean norm. The empty set is included: it is a closed set, a bounded set, and compact. [ref]
This makes an apparently infinite test practical. To verify compactness of a closed interval with finite endpoints, we need not examine every open cover: it is closed in the real line and a bounded set. By contrast, the open interval is a bounded set but is not closed in the real line, as the missing-endpoint figure in compact space illustrates. The whole real line is closed but is not a bounded set, so it too fails compactness. These examples show why both hypotheses are needed.
The same criterion holds in any real or complex finite-dimensional vector space equipped with a norm: all norms there are equivalent norms, so they give the same open sets, closed sets, and bounded sets. Since compactness depends only on the topology, choosing a different norm does not change the conclusion. Without an appropriate topology, a bare vector space alone has no notion of compactness.
The restriction to a finite-dimensional vector space is essential. In the l2 sequence space, an infinite-dimensional vector space that is also a Hilbert space, let be the vectors of its standard orthonormal basis. All lie in the closed unit ball , which is a closed set and a bounded set in the norm topology. For distinct indices, their inner product is zero, giving
Thus distinct terms remain distance apart. No subsequence is a Cauchy sequence, hence none is a convergent sequence. The equivalence of compactness and sequential compactness in a metric space proves that this closed unit ball is not compact. The conclusion concerns the norm topology.
A short proof outline in Euclidean space explains the role of a finite-dimensional vector space. For a sequence in a bounded set, apply the Bolzano-Weierstrass theorem to each of the Cartesian coordinates in turn, retaining a subsequence at each of the finitely many steps. The final subsequence is a convergent sequence in all Cartesian coordinates, and a closed set contains its limit of a sequence. This yields sequential compactness, hence compactness. Conversely, a compact subset of a metric space is a closed set and a bounded set. [ref]
Operator theory Created 2026-09-24 Updated 2026-10-14
Linear operator theory studies linear maps, their spectra, invariant subspaces, and normal forms such as Jordan normal form. In a finite-dimensional vector space, eigenvalues identify parameters for which a shifted linear operator cannot be inverted. In an infinite-dimensional vector space, inversion can fail even without an eigenvector. The spectrum of a bounded operator captures this larger obstruction and connects linear algebra with the approximation questions of functional analysis.
Matrix of a bilinear form 2026-10-14
Choose an ordered basis of a finite-dimensional vector space. The matrix of a bilinear form records all pairings of basis vectors, with . Writing and , separate linearity gives
where the last expression uses the coordinate vectors of . Conversely, every matrix defines a bilinear form by this formula.[ref]
For a concrete bilinear form on , take
Then but : a bilinear form need not be a symmetric bilinear form. For and , first compute , then . Reversing the inputs gives and .
Figure 1.
Basis coefficients determine each pairing, but self-pairings lose the alternating part
. Details.
Under change of basis, let the columns of an invertible matrix be the new basis vectors in old coordinates. Thus and , so
This is matrix congruence, rather than the matrix similarity for an endomorphism. Both inputs have changed coordinates, which explains the two factors of . For the displayed and , direct multiplication gives ; its entry is .[ref]
Metric topology Created 2026-10-03 Updated 2026-10-14
The metric topology consists of the sets such that, for every , some open ball lies in . Thus open sets describe which sufficiently small changes remain inside a region; they do not specify the numerical size of those changes.
For , the L1 norm, Euclidean norm, and maximum norm satisfy
These bounds make them equivalent norms. For example, : every open ball contains a sufficiently small open ball for either other metric. Hence all three define the same open sets, convergent sequences, and continuous maps. More generally, any two norms on a real or complex finite-dimensional vector space are equivalent norms; see H. A. Priestley, Functional Analysis I, §§0.5–0.7 and Theorem 4.3.
The metric topology therefore does not determine numerical distances. Multiplying a metric by preserves its open sets while multiplying every distance by . Nor does the general equivalence of metrics require constant-factor bounds: that stronger comparison holds for the three norms used here.
Nondegenerate bilinear form Created 2026-09-24 Updated 2026-10-14
A bilinear form is nondegenerate when its left radical and right radical are both zero: every nonzero vector can be detected by some pairing, whichever input slot it occupies. On a finite-dimensional vector space, either condition implies the other, and the following tests are equivalent:
Here is the matrix of a bilinear form, and is the dual space. The linear map has matrix in the chosen basis and its dual basis, so its kernel is the right radical. The map has matrix . An invertible matrix has zero kernel on both sides, proving the finite-dimensional equivalence. In infinite dimensions, zero left radical and right radical imply these maps are injective, but do not generally make them surjective.[ref]
For the real symmetric bilinear form , the determinant is . Its isotropic vector has zero self-pairing but pairs to with , so it is detected. The alternating bilinear form with matrix has determinant and detects every nonzero vector even though all self-pairings vanish. Neither zero self-pairings nor the absence of positive definiteness implies degeneracy.
Nondegeneracy is useful because it turns a linear functional into a unique vector. For , the linear functional is ; solving for that representing vector amounts to solving an invertible system of linear equations. The analogous identification underlies bilinear orthogonal complements and the dual isomorphisms induced by a nondegenerate pairing.
Nullity of a linear map 2026-10-14
The nullity of a linear map is , the dimension of its kernel. It counts independent input directions that can change without changing the output. For a finite-dimensional vector space , the rank-nullity theorem gives
For an matrix of matrix rank , this is , using the number of columns, not the number of rows. This dimension identity is [ref].
The nullity answers a practical question about a linear system: once one input is known to produce the requested output, how much freedom remains? If , its fiber of a function over is
Indeed, exactly when . Thus every nonempty fiber is an affine subspace of dimension , with the same direction space as the kernel. The kernel itself is the fiber over zero. Outputs outside the image of a linear map have empty fibers; the nullity does not guarantee existence, and we assign no solution-space dimension to an empty fiber here.
Figure 1.
Nullity one gives parallel solution lines for
. Each colored input straight line is the fiber over the corresponding output . The blue line through the origin is the kernel. The orange inputs and give the same output; their difference belongs to the kernel. The output lies outside the image of a linear map and has no input. Exact toy geometry, not measured data. Details.
In the diagram, has matrix , matrix rank one and nullity one. Its kernel has basis , and the full solution of is . One free scalar moves the solution along a straight line; the output is impossible.
The existing three-input example instead has rank two and nullity one. Its image of a linear map is all of , and
Every output has a solution straight line. In contrast, has rank one and nullity two, with kernel basis . Its reachable output has the solution affine subspace
a plane, while with has no solution. These two linear maps have the same input and output dimensions but different freedom and reachability. Computing the kernel separates what an output determines from what an extra constraint would have to fix. For either example, a basis of the kernel gives one independent free scalar per basis vector, which is why nullity measures freedom rather than the number of solutions.
Normalize the riskless financial asset to , , and write for the risky asset prices. Their discounted gain random vector is . A zero-cost portfolio holding in the risky assets and in the riskless asset has terminal value . Thus an arbitrage means
An equivalent martingale measure is a probability measure with the same null sets as , under which is integrable and . The discounted risky prices are then martingales over the single trading period.
If such exists, a nonnegative terminal gain has expectation zero under . A nonnegative random variable with zero expectation vanishes almost surely: on its expectation is at least , and the union of these events is . Equivalence transfers this conclusion to , excluding arbitrage.
For the converse we prove the needed positive-density separation proof of the one-period asset-pricing theorem. First make the gain integrable without changing its null sets. Define an equivalent probability measure by
Let and let be its orthogonal complement. Taking a finite basis of shows almost surely. If , the gain is zero and already gives the required measure. Otherwise consider the positive-weight expectation cone
Positive combinations of weights show that is a convex cone. It is open relative to . Indeed, for any admissible weight , perturb it to
These weights remain bounded and strictly positive, while
For every nonzero , is nonzero on an event of positive probability; otherwise . Consequently
The matrix is finite because . The kernel of on is zero, so it defines an invertible matrix on the finite-dimensional vector space . For any sufficiently small , every with is the image of a vector in the radius- ball, since . Hence the perturbations give a neighborhood of zero, proving relative openness of .
If , the hyperplane separation theorem gives a nonzero with for every . The separating constant can be taken to be zero because is a cone. Put and use the strictly positive weights . Taking the limit as yields , forcing . But , so . This is an arbitrage, a contradiction. Hence : some bounded strictly positive satisfies . Normalize it by . This gives an equivalent martingale measure with integrable gains, establishing the fundamental theorem of asset pricing here without any further existence theorem.
Now retain only the positive-probability states of the finite probability space. Let be the linear span of the discounted terminal asset payoffs; it contains the constant vector . A complete market means . An equivalent martingale measure is a vector of strictly positive state probabilities whose pairing with each asset payoff gives its initial price. By linearity it prices every attainable payoff. If , the indicator functions of individual states are attainable, so these prices determine every uniquely.
If is proper, choose . Since , . For sufficiently small , both and have strictly positive entries, sum to one, and give the same pairings with every asset payoff. They are distinct equivalent martingale measures. Therefore market completeness is equivalent to uniqueness of the equivalent martingale measure.
Choose a best uniform approximation . It exists because this vector subspace is a finite-dimensional vector space and a minimizing sequence is bounded: . Finite-dimensional equivalence of norms then supplies a convergent subsequence of coefficients. If , the Chebyshev alternation theorem gives alternating error extrema. The intermediate value theorem supplies a zero of in each of the intervening open intervals. These interpolation nodes are distinct, and uniqueness of polynomial interpolation gives
The convergence follows from the Weierstrass approximation theorem. If , choose any distinct nodes: the polynomial interpolant is still . This constructs interpolation nodes from best uniform approximation; the nodes depend on , and no universal node system for all continuous functions is asserted.
We first prove the stronger compact-square form, in which all the one-variable functions are continuous. There are five fixed pairs of continuous functions on the unit interval such that every real has a representation
with continuous one-variable . We construct the inner functions and then prove convergence of the outer functions, rather than assume the Kolmogorov-Arnold representation theorem.
Constructing separating inner functions. Work in the Banach space with the maximum of the ten supremum norms. For each positive integer , let consist of tuples for which there are, for each , finite families of closed intervals and of length less than , satisfying two conditions. Each point of the unit interval belongs to at least four of the five unions , and likewise for the families. Within each fixed , the compact sets
are pairwise disjoint for distinct pairs . Each is a closed interval, by continuity and the intermediate value theorem. These are grid-separated additive coordinates.
The set is open: for a tuple and its finitely many witnessing intervals, the distinct compact image intervals have a positive minimum separation. A sufficiently small uniform change in the inner functions preserves that separation, while the interval-cover conditions do not change.
To prove density, start with any ten continuous functions and any positive approximation tolerance. Choose a common fine partition so that each original function oscillates by less than a small fraction of the tolerance on a partition cell and its immediate neighbours; choose its mesh smaller than . Near every internal division point put five small, pairwise disjoint open gaps, one for each . Use these gaps to divide the interval into closed towns for family , including the two endpoints in towns. Gaps from different families are disjoint, so any point misses at most one family; every town has length less than if the gaps are sufficiently small. Do this for both coordinates.
Approximate and by functions which are constant on their respective towns, and interpolate linearly across the gaps. The towns lie near single partition cells, so uniform continuity makes these approximations as close to the original functions as desired. For each , perturb the finitely many town values arbitrarily slightly so that all sums are distinct. This is possible because each unwanted equality between distinct pairs is a proper affine hyperplane in the finite-dimensional vector space of values; finitely many such hyperplanes cannot fill any open ball. Interpolating the perturbed values still approximates the original functions, and the rectangle images are now distinct singleton sets. Thus is dense.
By the Baire category theorem, choose one tuple in . To recall why completeness suffices here, start inside any open ball and successively choose closed balls of positive radii tending to zero, each contained in the preceding ball and in the next dense open . Their centers form a Cauchy sequence, and its limit belongs to every ball, hence every . Fix this tuple once and for all: it does not depend on .
A quantitative approximation step. Let a continuous residual have supremum norm . Choose large enough that the oscillation of on any rectangle of side lengths below is at most . For each rectangle choose a sample point . Define a one-variable to have constant value on . The image intervals are disjoint, so interpolate linearly in their gaps and extend constantly beyond the outermost ones. Then is continuous on the real line and
At a given , at most one family fails to contain in an town and at most one fails to contain in a town. Thus the point belongs to rectangles in families, where . For each of these families the summand differs from by at most . Each remaining summand has absolute value at most . Consequently
This proves a strict contraction uniformly over the square, including points in gaps.
Summing the corrections. Set and apply that step repeatedly, subtracting the five summands at each stage. The residuals satisfy , and the corresponding corrections satisfy . If a residual is zero, take all subsequent corrections to be zero. The series
converges uniformly on the real line to a continuous function. The residuals tend uniformly to zero, proving the boxed representation. An affine change of each coordinate treats any compact rectangle.
Removing a restriction to a compact domain. For a continuous real function on the whole plane, set
Choose a positive continuous one-variable by linear interpolation of at nonnegative integers. Since these values increase, for we have . Therefore
Let . Transport to the open square by , and set it to zero on the square's boundary. The displayed decay estimate proves continuity at every boundary point, including the corners. Apply the compact-square representation to and substitute , to obtain using continuous one-variable functions and addition.
Finally multiply this expression by . Multiplication itself uses only addition and one-variable functions, because
Squaring, negation and scaling are one-variable operations, as are and . Thus the whole-plane reduction for continuous superposition gives a finite expression of the required kind for every continuous on the plane, without a boundedness assumption. For a complex-valued , apply the argument to its real and imaginary parts and combine them using addition and the one-variable map . All the constituent one-variable functions can be taken continuous.