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In this paper, we address the stochastic representation problem in discrete time under (non-linear) g-expectation. We establish existence and uniqueness of the solution, as well as a characterization of the solution. As an application, we…

Probability · Mathematics 2022-01-21 Miryana Grigorova , Hanwu Li

We study a problem of finding an optimal stopping strategy to liquidate an asset with unknown drift. Taking a Bayesian approach, we model the initial beliefs of an individual about the drift parameter by allowing an arbitrary probability…

Mathematical Finance · Quantitative Finance 2015-09-03 Erik Ekström , Juozas Vaicenavicius

It is now established that under quite general circumstances, including in models with jumps, the existence of a solution to a reflected BSDE is guaranteed under mild conditions, whereas the existence of a solution to a doubly reflected…

Probability · Mathematics 2008-11-17 Stéphane Crépey , Anis Matoussi

This paper studies a system of $m$ variational inequalities with interconnected obstacles in infinite horizon associated to optimal multi-modes switching problems. Our main result is the existence and uniqueness of a continuous solution in…

Optimization and Control · Mathematics 2023-03-09 Brahim El Asri , Imade Fakhouri , Nacer Ourkiya

We study a class of backward stochastic differential equations (BSDEs) driven by a random measure or, equivalently, by a marked point process. Under appropriate assumptions we prove well-posedness and continuous dependence of the solution…

Probability · Mathematics 2012-05-24 Fulvia Confortola , Marco Fuhrman

We present a new deep primal-dual backward stochastic differential equation framework based on stopping time iteration to solve optimal stopping problems. A novel loss function is proposed to learn the conditional expectation, which…

Computational Finance · Quantitative Finance 2024-09-12 Jiefei Yang , Guanglian Li

In this paper, we consider a class of stochastic impulse control problem when there is a fixed delay $\Delta$ between the decision and execution times. The dynamics of the controlled system between two impulses is an arbitrary adapted…

Probability · Mathematics 2026-01-23 Said Hamadène , Ibtissam Hdhiri

Linear dynamical systems are canonical models for learning-based control of plants with uncertain dynamics. The setting consists of a stochastic differential equation that captures the state evolution of the plant understudy, while the true…

Systems and Control · Electrical Eng. & Systems 2022-01-03 Mohamad Kazem Shirani Faradonbeh , Mohamad Sadegh Shirani Faradonbeh

In this note we prove existence of a solution to a system of Markovian BSDEs with interconnected obstacles. A key feature of our system, and the main novelty of this paper, is that we allow for the driver $f_i$ of the $i$-th component of…

Probability · Mathematics 2017-10-09 Tiziano De Angelis , Giorgio Ferrari , Saïd Hamadène

In this paper, we investigate optimal stopping problems in a continuous-time framework where only a discrete set of stopping dates is admissible, corresponding to the Bermudan option, within the so-called exploratory formulation. We…

Probability · Mathematics 2025-09-24 Noufel Frikha , Libo Li , Daniel Chee

We are interested on reflected advanced backward stochastic differential equations (RABSDE) with default. By the predictable representation property and for a Lipschitz driver, we show that the RABSDE with default has a unique solution in…

Optimization and Control · Mathematics 2018-03-21 N. Agram , S. Labed , B. Mansouri , M. A. Saouli

In this paper we study different algorithms for backward stochastic differential equations (BSDE in short) basing on random walk framework for 1-dimensional Brownian motion. Implicit and explicit schemes for both BSDE and reflected BSDE are…

Probability · Mathematics 2009-09-23 Shige Peng , Mingyu Xu

The prediction of a binary sequence is a classic example of online machine learning. We like to call it the 'stock prediction problem,' viewing the sequence as the price history of a stock that goes up or down one unit at each time step. In…

Optimization and Control · Mathematics 2020-07-28 Nadejda Drenska , Robert V. Kohn

In this paper we focus on the so called identification problem for a backward SDE driven by a continuous local martingale and a possibly non quasi-left-continuous random measure. Supposing that a solution (Y, Z, U) of a backward SDE is such…

Probability · Mathematics 2020-01-27 Elena Bandini , Francesco Russo

In this paper, we investigate a class of nonlinear backward stochastic differential equations (BSDEs) arising from financial economics, and give specific information about the nodal sets of the related solutions. As applications, we are…

Probability · Mathematics 2022-11-01 Zengjing Chen , Shuhui Liu , Zhongmin Qian , Xingcheng Xu

In this paper we deal with the problem of the existence and the uniqueness of a solution for one dimensional reflected backward stochastic differential equations with two strictly separated barriers when the generator is allowing a…

Probability · Mathematics 2022-02-11 Brahim El Asri , Khalid Oufdil , Nacer Ourkiya

The problem of stopping a Brownian bridge with an unknown pinning point to maximise the expected value at the stopping time is studied. A few general properties, such as continuity and various bounds of the value function, are established.…

Probability · Mathematics 2019-01-17 Erik Ekström , Juozas Vaicenavicius

In this paper, we analyze mean-field reflected backward stochastic differential equations when the driver has quadratic growth in the second unknown $z$. Using linearization technique and BMO martingale theory, we first apply fixed point…

Probability · Mathematics 2022-02-16 Ying Hu , Remi Moreau , Falei Wang

This paper is concerned with the switching game of a one-dimensional backward stochastic differential equation (BSDE). The associated Bellman-Isaacs equation is a system of matrix-valued BSDEs living in a special unbounded convex domain…

Probability · Mathematics 2013-11-26 Ying Hu , Shanjian Tang

The present paper is devoted to the study of backward stochastic differential equations with mean reflection formulated by Briand et al. [7]. We investigate the solvability of a generalized mean reflected BSDE, whose driver also depends on…

Probability · Mathematics 2022-11-03 Ying Hu , Remi Moreau , Falei Wang
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