Coupled bialgebras and Lions trees

Abstract: A Bialgebra is a module over a ring that is both an associative algebra and a co-associative coalgebra with the product and coproduct additionally satisfying an appropriate commutative relationship. One application of Bialgebras is in the study of Taylor expansions where the product describes how for any increment, two terms of the Taylor expansion can be combined together to obtain a higher order term, while the coproduct describes how a term can be decomposed into lower order terms over two adjacent increments. Our motivation is the study of higher order Lions-Taylor expansions and more generally to probabilistic rough paths. The application of iterative Lions derivatives generates a collection of free variables. When terms from a Lions-Taylor expansion are themselves Lions-Taylor expanded, each of these free variables are viewed as tagged and so need Taylor expanding on which greatly increases the number of variables that one needs to keep track of. This additional structure typically takes the form of couplings between terms that arise through the application of the coproduct. The purpose of this work is to document the combinatorial properties of Lions forests (which are central to many key interpretations of probabilistic rough paths) and more formally describe the coupled Bialgebra structure.