R-Matrix Formulation of KP Hierarchies and their Gauge Equivalence

The Adler-Kostant-Symes $R$-bracket scheme is applied to the algebra of pseudo-differential operators to relate the three integrable hierarchies: KP and its two modifications, known as nonstandard integrable models. All three hierarchies are shown to be equivalent and connection is established in the form of a symplectic gauge transformation. This construction results in a new representation of the W-infinity algebras in terms of 4 bosonic fields.Comment: 13 pages, Latex, CERN-TH.6627/9

Integrable Perturbations of WnW_n and WZW Models

We present a new class of 2d integrable models obtained as perturbations of minimal CFT with W-symmetry by fundamental weight primaries. These models are generalisations of well known $(1,2)$-perturbed Virasoro minimal models. In the large $p$ (number of minimal model) limit they coincide with scalar perturbations of WZW theories. The algebra of conserved charges is discussed in this limit. We prove that it is noncommutative and coincides with twisted affine algebra $G$ represented in a space of asymptotic states. We conjecture that scattering in these models for generic $p$ is described by $S$-matrix of the $q$-deformed $G$ - algebra with $q$ being root of unity.Comment: 10p., LaTeX, preprint SISSA 19/94/FM (references added

Induced W∞W_\infty Gravity as a WZNW Model

We derive the explicit form of the Wess-Zumino quantum effective action of chiral \Winf-symmetric system of matter fields coupled to a general chiral \Winf-gravity background. It is expressed as a geometric action on a coadjoint orbit of the deformed group of area-preserving diffeomorphisms on cylinder whose underlying Lie algebra is the centrally-extended algebra of symbols of differential operators on the circle. Also, we present a systematic derivation, in terms of symbols, of the "hidden" SL(\infty;\IR) Kac-Moody currents and the associated SL(\infty;\IR) Sugawara form of energy-momentum tensor component $T_{++}$ as a consequence of the SL(\infty;\IR) stationary subgroup of the relevant \Winf coadjoint orbit

Classification of Quantum Hall Universality Classes by $\ W_{1+\infty}\ $ symmetry

We show how two-dimensional incompressible quantum fluids and their excitations can be viewed as $\ W_{1+\infty}\$ edge conformal field theories, thereby providing an algebraic characterization of incompressibility. The Kac-Radul representation theory of the $\ W_{1+\infty}\$ algebra leads then to a purely algebraic complete classification of hierarchical quantum Hall states, which encompasses all measured fractions. Spin-polarized electrons in single-layer devices can only have Abelian anyon excitations.Comment: 11 pages, RevTeX 3.0, MPI-Ph/93-75 DFTT 65/9

Sigma models as perturbed conformal field theories

We show that two-dimensional sigma models are equivalent to certain perturbed conformal field theories. When the fields in the sigma model take values in a space G/H for a group G and a maximal subgroup H, the corresponding conformal field theory is the $k\to\infty$ limit of the coset model $(G/H)_k$, and the perturbation is related to the current of G. This correspondence allows us for example to find the free energy for the "O(n)" (=O(n)/O(n-1)) sigma model at non-zero temperature. It also results in a new approach to the CP^{n} model.Comment: 4 pages. v2: corrects typos (including several in the published version

Time Dynamics of Probability Measure and Hedging of Derivatives

We analyse derivative securities whose value is NOT a deterministic function of an underlying which means presence of a basis risk at any time. The key object of our analysis is conditional probability distribution at a given underlying value and moment of time. We consider time evolution of this probability distribution for an arbitrary hedging strategy (dynamically changing position in the underlying asset). We assume log-brownian walk of the underlying and use convolution formula to relate conditional probability distribution at any two successive time moments. It leads to the simple PDE on the probability measure parametrized by a hedging strategy. For delta-like distributions and risk-neutral hedging this equation reduces to the Black-Scholes one. We further analyse the PDE and derive formulae for hedging strategies targeting various objectives, such as minimizing variance or optimizing quantile position.