Non-standard probability, coherence and conditional probability on many-valued events

Authors:
Franco Montagna;Martina Fedel;Giuseppe Scianna
Affiliations:
Department of Mathematics and Computer Science 'R. Magari', Pian dei Mantellini 44, 53100 Siena, Italy;Department of Mathematics and Computer Science 'R. Magari', Pian dei Mantellini 44, 53100 Siena, Italy;Department of Mathematics and Computer Science 'R. Magari', Pian dei Mantellini 44, 53100 Siena, Italy
Venue:
International Journal of Approximate Reasoning
Year:
2013

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Abstract

The usual coherence criterion by de Finetti is extended both to many-valued events and to conditional probability. Special attention is paid to assessments in which the betting odds for conditioning events are zero. This case is treated by means of infinitesimal probabilities. We propose a rationality criterion, called stable coherence, which is stronger than coherence in the sense of no sure loss.