Nonlinear Expectation and Applications.
Nonlinear expectation, first developed by Prof. Shige Peng, is an important mathematical tool to study Knightian uncertainty and financial risk. Since the beginning of this century, Nonlinear Expectation has attracted more interest from academic researches and a lot of progress has been made from the theoretical point of view. Since the assumptions of the identical and independent distribution of the data may not be satisfied in traditional sense, there is great potential in measuring and managing financial risk based on the Nonlienar Expecation theory. Smale Institute will promote and advance the applications of Nonlinear Expectation in financial risk area and other broader fields.