Defined terms for the annuity market and lifetime income landscape.
Convexity is a measure of how the price sensitivity of a bond changes as interest rates change, capturing the curvature in the price-yield relationship that duration alone misses.
Cooperative game theory is the branch of analysis that studies how groups of participants can form coalitions to achieve outcomes none could reach alone, and how the gains from cooperation can be divided among the members in ways that hold the coalition together.
The core, in cooperative game theory, is the set of payoff allocations to a group of participants from which no subgroup of the participants could do better by leaving and producing an outcome on their own.
Correlation is a measure of how consistently two sets of values move together, ranging from a coefficient of one for values that move perfectly in step to a coefficient of negative one for values that move perfectly opposite, with zero meaning no consistent relationship.
