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This paper investigates a singular stochastic control problem for a multi-dimensional regime-switching diffusion process confined in an unbounded domain. The objective is to maximize the total expected discounted rewards from exerting the…

Optimization and Control · Mathematics 2016-08-02 Qingshuo Song , Chao Zhu

We consider stochastic impulse control problems when the impulses cost functions are arbitrary. We use the dynamic programming principle and viscosity solutions approach to show that the value function is a unique viscosity solution for the…

Optimization and Control · Mathematics 2019-01-17 Brahim El Asri , Sehail Mazid

We consider a class of stochastic impulse control problems of general stochastic processes i.e. not necessarily Markovian. Under fairly general conditions we establish existence of an optimal impulse control. We also prove existence of…

Probability · Mathematics 2008-06-18 Boualem Djehiche , Said Hamadene , Ibtissam Hdhiri

We consider a stochastic impulse control problem that is motivated by applications such as the optimal exploitation of a natural resource. In particular, we consider a stochastic system whose uncontrolled state dynamics are modelled by a…

Optimization and Control · Mathematics 2024-08-27 Zhesheng Liu , Mihail Zervos

This paper describes a method for scheduling the events of a switched system to achieve an optimal performance. The approach has guarantees on convergence and computational complexity that parallel derivative-based iterative optimization…

Optimization and Control · Mathematics 2017-09-11 Timothy Caldwell , Todd Murphey

In this paper we consider stochastic optimization problems for an ambiguity averse decision maker who is uncertain about the parameters of the underlying process. In a first part we consider problems of optimal stopping under drift…

Computational Finance · Quantitative Finance 2015-03-19 Sören Christensen

The topics treated in this thesis are inherently two-fold. The first part considers the problem of a market maker optimally setting bid/ask quotes over a finite time horizon, to maximize her expected utility. The intensities of the orders…

Optimization and Control · Mathematics 2020-09-15 Diego Zabaljauregui

In this paper, we study optimal liquidation problems in a randomly-terminated horizon. We consider the liquidation of a large single-asset portfolio with the aim of minimizing a combination of volatility risk and transaction costs arising…

Trading and Market Microstructure · Quantitative Finance 2017-09-19 Qing-Qing Yang , Wai-Ki Ching , Jia-Wen Gu , Tak Kwong Wong

We formulate an optimal switching problem when the underlying filtration is generated by a marked point process and a Brownian motion. Each mode is characterized by a different compensator for the point process, and thus by a different…

Probability · Mathematics 2017-11-01 Nahuel Foresta

We characterize the optimal control for a class of singular stochastic control problems as the unique solution to a related Skorokhod reflection problem. The considered optimization problems concern the minimization of a discounted cost…

Optimization and Control · Mathematics 2023-05-22 Jodi Dianetti , Giorgio Ferrari

Incomplete financial markets are considered, defined by a multi-dimensional non-homogeneous diffusion process, being the direct sum of an It\^{o} process (the price process), and another non-homogeneous diffusion process (the exogenous…

Optimization and Control · Mathematics 2014-05-15 Yalçin Aktar , Erik Taflin

This paper studies the problem of optimally extracting nonrenewable natural resource in light of various financial and economic restrictions and constraints. Taking into account the fact that the market values of the main natural resources…

Mathematical Finance · Quantitative Finance 2016-11-29 Moustapha Pemy

We study optimal liquidation strategies under partial information for a single asset within a finite time horizon. We propose a model tailored for high-frequency trading, capturing price formation driven solely by order flow through…

Mathematical Finance · Quantitative Finance 2024-11-08 Etienne Chevalier , Yadh Hafsi , Vathana Ly Vath

In this paper we deal with infinite horizon optimal control problems. Basing on weak variations in an extremal problem in weighted function spaces we prove necessary conditions in form of the adjoint equation and a variational inequality.…

Optimization and Control · Mathematics 2018-07-05 Nico Tauchnitz

We study the stochastic control problem of maximizing expected utility from terminal wealth under a non-bankruptcy constraint. The wealth process is subject to shocks produced by a general marked point process. The problem of the agent is…

Optimization and Control · Mathematics 2010-08-31 Mohamed Mnif

This paper deals with numerical solutions of maximizing expected utility from terminal wealth under a non-bankruptcy constraint. The wealth process is subject to shocks produced by a general marked point process. The problem of the agent is…

Computational Finance · Quantitative Finance 2010-09-06 Mohamed Mnif

We consider a problem of stochastic optimal control with separable drift uncertainty in strong formulation on a finite horizon. The drift coefficient of the state $Y^{u}$ is multiplicatively influenced by an unknown random variable…

Optimization and Control · Mathematics 2023-11-13 Samuel N. Cohen , Christoph Knochenhauer , Alexander Merkel

In this paper, we investigate infinite horizon jump-diffusion forward-backward stochastic differential equations under some monotonicity conditions. We establish an existence and uniqueness theorem, two stability results and a comparison…

Probability · Mathematics 2016-08-22 Zhiyong Yu

We consider a type of optimal switching problems with non-uniform execution delays and ramping. Such problems frequently occur in the operation of economical and engineering systems. We first provide a solution to the problem by applying a…

Optimization and Control · Mathematics 2017-02-15 Magnus Perninge

For a general optimal control problem for dynamical systems with hybrid dynamics, we study the dependency of the optimal cost and of the value function on the initial conditions, parameters, and perturbations. We show that upper and lower…

Optimization and Control · Mathematics 2021-12-22 Berk Altın , Ricardo G. Sanfelice
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