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We introduce a notion of nonlinear expectation --G--expectation-- generated by a nonlinear heat equation with infinitesimal generator G. We first discuss the notion of G-standard normal distribution. With this nonlinear distribution we can…

Probability · Mathematics 2007-05-23 Shige Peng

We introduce a new notion of G-normal distributions. This will bring us to a new framework of stochastic calculus of Ito's type (Ito's integral, Ito's formula, Ito's equation) through the corresponding G-Brownian motion. We will also…

Probability · Mathematics 2007-11-20 Shige Peng

In this book, we introduce a new approach of sublinear expectation to deal with the problem of probability and distribution model uncertainty. We a new type of (robust) normal distributions and the related central limit theorem under…

Probability · Mathematics 2010-02-25 Shige Peng

We provide a general approach to construct a stochastic process with a given consistent family of finite dimensional distributions under a nonlinear expectation space. We use this approach to construct a generalized Gaussian process under a…

Probability · Mathematics 2011-05-06 Shige Peng

In this paper, we extend the G-expectation theory to infinite dimensions. Such notions as a covariation set of G-normal distributed random variables, viscosity solution, a stochastic integral driven by G-Brownian motion are introduced and…

Probability · Mathematics 2013-06-25 Anton Ibragimov

The objective of this paper is to derive a representation of symmetric G-martingales as stochastic integrals with respect to the G-Brownian motion. For this end, we first study some extensions of stochastic calculus with respect to…

Probability · Mathematics 2010-03-17 Qian Lin

In this paper, we establish Girsanov's formula for $G$-Brownian motion. Peng (2007, 2008) constructed $G$-Brownian motion on the space of continuous paths under a sublinear expectation called $G$-expectation; as obtained by Denis et al.…

Probability · Mathematics 2013-02-22 Emi Osuka

We define $g$-expectation of a distribution as the infimum of the $g$-expectations of all the terminal random variables sharing that distribution. We present two special cases for nonlinear $g$ where the $g$-expectation of distributions can…

Probability · Mathematics 2022-08-16 Mingyu Xu , Zuo Quan Xu , Xun Yu Zhou

In this paper, we consider the stochastic optimal control problems under G-expectation. Based on the theory of backward stochastic differential equations driven by G-Brownian motion, which was introduced in [10.11], we can investigate the…

Probability · Mathematics 2013-08-19 Zhonghao Zheng , Xiuchun Bi , Shuguang Zhang

This paper is concerned with the connection between G-Brownian Motion and analytic functions. We introduce the complex version of sublinear expectation, and then do the stochastic analysis in this framework. Furthermore, the conformal…

Probability · Mathematics 2015-02-11 Huilin Zhang

In this paper, we obtain the existence and uniqueness theorem for backward stochastic differential equation driven by G-Brownian motion (G-BSDE) under degenerate case. Moreover, we propose a new probabilistic method based on the…

Probability · Mathematics 2022-05-20 Mingshang Hu , Shaolin Ji , Xiaojuan Li

Based on the classical probability, the stability criteria for stochastic differential delay equations (SDDEs) where their coefficients are either linear or nonlinear but bounded by linear functions have been investigated intensively.…

Optimization and Control · Mathematics 2020-04-29 Chen Fei , Weiyin Fei , Xuerong Mao , Litan Yan

In this paper, we introduce $ G $-Bessel processes for a class of $ d $-dimensional $ G $-Brownian motions. Under the condition of dimensionality $ d $, we obtain that the $ G $-Bessel process is the solution of the stochastic differential…

Probability · Mathematics 2025-05-20 Mingshang Hu , Renxing Li

The sub-linear expectation or called G-expectation is a nonlinear expectation having advantage of modeling non-additive probability problems and the volatility uncertainty in finance. Let $\{X_n;n\ge 1\}$ be a sequence of independent random…

Probability · Mathematics 2016-08-03 Li-Xin Zhang

The classical law of the iterated logarithm (LIL for short)as fundamental limit theorems in probability theory play an important role in the development of probability theory and its applications. Strassen (1964) extended LIL to large…

Probability · Mathematics 2021-07-02 Panyu Wu , Zengjing Chen

In this paper we study the problems of invariant and ergodic measures under G-expectation framework. In particular, the stochastic differential equations driven by G-Brownian motion have the unique invariant and ergodic measures. Moreover,…

Probability · Mathematics 2014-09-12 Mingshang Hu , Hanwu Li , Falei Wang , Guoqiang Zheng

We derive sufficient conditions for the convex and monotonic g-stochastic ordering of diffusion processes under nonlinear g-expectations and g-evaluations. Our approach relies on comparison results for forward-backward stochastic…

Probability · Mathematics 2022-04-13 Sel Ly , Nicolas Privault

In this paper, we study the reflected stochastic differential equations driven by G-Brownian motion (reflected G-SDEs) with two nonlinear constraints. With the help of the Skorokhod problem with nonlinear constraints, we first study the…

Probability · Mathematics 2026-04-27 Hanwu Li

The G-expectation is a sublinear expectation. It is an important tool for pricing financial products and managing risk thanks to its ability to deal with model uncertainty. The problem is how to efficiently quantify it since the commonly…

Mathematical Finance · Quantitative Finance 2025-03-05 Z. T. Pei , X. Y. Yue , X. T. Zheng

We develop a pure Monte Carlo method to compute $E(g(X_T))$ where $g$ is a bounded and Lipschitz function and $X_t$ an Ito process. This approach extends a previously proposed method to the general multidimensional case with a SDE with…

Probability · Mathematics 2016-07-18 Mahamadou Doumbia , Nadia Oudjane , Xavier Warin
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