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Related papers: The Finite Horizon Optimal Multi-Modes Switching P…

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In this paper, we study a system of second order integro-partial differential equations with interconnected obstacles with non-local terms, related to an optimal switching problem with the jump-diffusion model. Getting rid of the…

Analysis of PDEs · Mathematics 2024-09-04 Said Hamadène , Mohamed Mnif , Sarah Neffati

We address the problem of making a managerial decision when the investment project is subsidized, which results in the resolution of an infinite-horizon optimal stopping problem of a switching diffusion driven by either an homogeneous or an…

Probability · Mathematics 2018-02-28 Carlos Oliveira , Nicolas Perkowski

We consider a class of stochastic control problems where the state process is a probability measure-valued process satisfying an additional martingale condition on its dynamics, called measure-valued martingales (MVMs). We establish the…

Probability · Mathematics 2023-08-29 Alexander M. G. Cox , Sigrid Källblad , Martin Larsson , Sara Svaluto-Ferro

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

This paper investigates the optimal control problems for the finite-horizon continuous-time Markov decision processes with delay-dependent control policies. We develop compactification methods in decision processes, and show that the…

Probability · Mathematics 2023-07-06 Zhong-Wei Liao , Jinghai Shao

We study a general class of nonlinear second-order variational inequalities with interconnected bilateral obstacles, related to a multiple modes switching game. Under rather weak assumptions, using systems of penalized unilateral backward…

Analysis of PDEs · Mathematics 2012-11-22 Boualem Djehiche , Said Hamadene , Marie Amelie Morlais

In the present article, we are interested in an initial boundary value problem for a coupled system of partial differential equations arising in martensitic phase transition theory of elastically deformable solid materials, e.g., steel.…

Dynamical Systems · Mathematics 2011-02-07 Peicheng Zhu

We prove the existence of a unique viscosity solution to certain systems of fully nonlinear parabolic partial differential equations with interconnected obstacles in the setting of Neumann boundary conditions. The method of proof builds on…

Analysis of PDEs · Mathematics 2022-05-24 Niklas L. P. Lundström , Marcus Olofsson

The main goal of this paper is to present the application of a superiorization methodology to solution of variational inequalities. Within this framework a variational inequality operator is considered as a small perturbation of a convex…

Optimization and Control · Mathematics 2016-11-30 Evgeni Nurminski

In this paper, we study optimal switching problems under ambiguity. To characterize the optimal switching under ambiguity in the finite horizon, we use multidimensional reflected backward stochastic differential equations (multidimensional…

Mathematical Finance · Quantitative Finance 2016-08-23 Yuki Shigeta

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 employ the viscosity solution technique to analyze optimal stopping problems with regime switching. Specifically, we obtain the viscosity property of value functions, the uniqueness of viscosity solutions, the regularity of value…

Optimization and Control · Mathematics 2015-12-25 Yong-Chao Zhang , Na Zhang

This paper studies a discrete-time optimal switching problem on a finite horizon. The underlying model has a running reward, terminal reward and signed (positive and negative) switching costs. Using the martingale approach to optimal…

Optimization and Control · Mathematics 2016-10-17 Randall Martyr

This paper establishes the existence of a unique nonnegative continuous viscosity solution to the HJB equation associated with a Markovian linear-quadratic control problems with singular terminal state constraint and possibly unbounded cost…

Mathematical Finance · Quantitative Finance 2020-04-29 Ulrich Horst , Xiaonyu Xia

In this paper we consider an infinite horizon zero-sum differential game where the dynamics of each player and the running cost are also depending on the evolution of some discrete (switching) variables. In particular, such switching…

Optimization and Control · Mathematics 2020-03-05 Fabio Bagagiolo , Rosario Maggistro , Marta Zoppello

In this paper, we investigate dynamic optimization problems featuring both stochastic control and optimal stopping in a finite time horizon. The paper aims to develop new methodologies, which are significantly different from those of mixed…

Portfolio Management · Quantitative Finance 2014-06-27 Xiongfei Jian , Xun Li , Fahuai Yi

We consider an optimal stochastic impulse control problem over an infinite time horizon motivated by a model of irreversible investment choices with fixed adjustment costs. By employing techniques of viscosity solutions and relying on…

Optimization and Control · Mathematics 2019-02-05 Salvatore Federico , Mauro Rosestolato , Elisa Tacconi

We study a problem of optimal investment/consumption over an infinite horizon in a market consisting of a liquid and an illiquid asset. The liquid asset is observed and can be traded continuously, while the illiquid one can only be traded…

Portfolio Management · Quantitative Finance 2012-11-07 Salvatore Federico , Paul Gassiat

This work takes up the challenges of utility maximization problem when the market is indivisible and the transaction costs are included. First there is a so-called solvency region given by the minimum margin requirement in the problem…

Portfolio Management · Quantitative Finance 2010-03-16 Qingshuo Song , G. Yin , Chao Zhu

In this paper we study a system of variational inequalities where the operator is non-local, possibly degenerate and of second order. A special case of this type of problem occurs in the context of optimal switching problems when the…

Optimization and Control · Mathematics 2013-07-09 Niklas L. P. LundstrÖm , Kaj NystrÖm , Marcus Olofsson