Lower Previsions

This book has two main purposes. On the one hand, it provides a concise and systematic development of the theory of lower previsions, based on the concept of acceptability, in spirit of the work of Williams and Walley. On the other hand, it also extends this theory to deal with unbounded quantities, which abound in practical applications. Following Williams, we start out with sets of acceptable gambles. From those, we derive rationality criteria–avoiding sure loss and coherence–and inference methods–natural extension–for (unconditional) lower previsions. We then proceed to study various aspects of the resulting theory, including the concept of expectation (linear previsio…