English

Reducing the projection onto the monotone extended second-order cone to the pool-adjacent-violators algorithm of isotonic regression

Optimization and Control 2022-07-18 v7

Abstract

This paper introduces the monotone extended second-order cone (MESOC), which is related to the monotone cone and the second-order cone. Some properties of the MESOC are presented and its dual cone is computed. Projecting onto the MESOC is reduced to the pool-adjacent-violators algorithm (PAVA) of isotonic regression. An application of MESOC to portfolio optimisation is provided. Some broad descriptions of possible MESOC-regression models are also outlined.

Keywords

Cite

@article{arxiv.2102.02040,
  title  = {Reducing the projection onto the monotone extended second-order cone to the pool-adjacent-violators algorithm of isotonic regression},
  author = {Orizon P. Ferreira and Yingchao Gao and Sándor Z. Németh},
  journal= {arXiv preprint arXiv:2102.02040},
  year   = {2022}
}

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13 pages