English

On a class of optimal transportation problems with infinitely many marginals

Optimization and Control 2012-06-26 v1 Analysis of PDEs Probability

Abstract

We prove existence and uniqueness results for solutions to a class of optimal transportation problems with infinitely many marginals, supported on the real line. We also provide a characterization of the solution with an explicit formula. We then show that this result implies an infinite dimensional rearrangement inequality, and use it to derive upper bounds on solutions to parabolic PDE via the Feynman-Kac formula. This result can be used to provide model independent bounds on the prices of certain derivatives in mathematical finance. As an another application, we obtain refined phase-space bounds in quantum physics.

Keywords

Cite

@article{arxiv.1206.5543,
  title  = {On a class of optimal transportation problems with infinitely many marginals},
  author = {Brendan Pass},
  journal= {arXiv preprint arXiv:1206.5543},
  year   = {2012}
}