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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

In this paper, we deal with the solutions of systems of PDEs with bilateral inter-connected obstacles of min-max and max-min types. These systems arise naturally in stochastic switching zero-sum game problems. We show that when the…

Probability · Mathematics 2016-07-27 Boualem Djehiche , Said Hamadène , Marie-Amélie Morlais , Xuzhe Zhao

In this paper, we investigate an interesting and important stopping problem mixed with stochastic controls and a \textit{nonsmooth} utility over a finite time horizon. The paper aims to develop new methodologies, which are significantly…

Optimization and Control · Mathematics 2015-07-06 Chonghu Guan , Xun Li , Zuoquan Xu , Fahuai Yi

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

In this paper we prove existence and uniqueness of viscosity solutions of elliptic systems associated to fully nonlinear operators for minimization problems that involve interconnected obstacles. This system appears, among other, in the…

Analysis of PDEs · Mathematics 2023-05-09 S. Andronicou , E. Milakis

We study optimal control problems in infinite horizon when the dynamics belong to a specific class of piecewise deterministic Markov processes constrained to star-shaped networks (inspired by traffic models). We adapt the results in [H. M.…

Optimization and Control · Mathematics 2015-10-06 Dan Goreac , Magdalena Kobylanski , Miguel Martinez

This paper is concerned with an infinite horizon stochastic linear quadratic (LQ, for short) optimal control problems with conditional mean-field terms in a switching environment. Different from [17], the cost functionals do not have…

Optimization and Control · Mathematics 2025-03-25 Hongwei Mei , Rui Wang , Qingmeng Wei , Jiongmin Yong

In this paper, we study systems of nonlinear second-order variational inequalities with interconnected bilateral obstacles with non-local terms. They are of min-max and max-min types and related to a multiple modes zero-sum switching game…

Probability · Mathematics 2017-04-06 Said Hamadene , Xuzhe Zhao

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 solve non-Markovian optimal switching problems in discrete time on an infinite horizon, when the decision maker is risk aware and the filtration is general, and establish existence and uniqueness of solutions for the associated reflected…

Optimization and Control · Mathematics 2022-08-09 Randall Martyr , John Moriarty , Magnus Perninge

We consider a singular control problem with regime switching that arises in problems of optimal investment decisions of cash-constrained firms. The value function is proved to be the unique viscosity solution of the associated…

Computational Finance · Quantitative Finance 2016-10-07 Erwan Pierre , Stéphane Villeneuve , Xavier Warin

We consider an optimal switching problem with random lag and possibility of component failure. The random lag is modeled by letting the operation mode follow a regime switching Markov-model with transition intensities that depend on the…

Optimization and Control · Mathematics 2019-08-22 Magnus Perninge

We consider a risk-sensitive continuous-time Markov decision process over a finite time duration. Under the conditions that can be satisfied by unbounded transition and cost rates, we show the existence of an optimal policy, and the…

Optimization and Control · Mathematics 2018-11-29 Xin Guo , Qiuli Liu , Yi Zhang

We study the regularity of the stochastic representation of the solution of a class of initial-boundary value problems related to a regime-switching diffusion. This representation is related to the value function of a finite-horizon optimal…

Probability · Mathematics 2017-06-12 S. D. Jacka , A. Ocejo

This paper is concerned with the maximum principle of stochastic optimal control problems, where the coefficients of the state equation and the cost functional are uncertain, and the system is generally under Markovian regime switching.…

Optimization and Control · Mathematics 2025-04-15 Tao Hao , Jiaqiang Wen , Jie Xiong

In this paper we discuss the optimal liquidation over a finite time horizon until the exit time. The drift and diffusion terms of the asset price are general functions depending on all variables including control and market regime. There is…

Portfolio Management · Quantitative Finance 2014-10-02 Baojun Bian , Nan Wu , Harry Zheng

We prove the existence of weak solution for a system of quasi-variational inequalities related to a switching problem with dynamic driven by operator associated with a semi-Dirichlet form and with measure data. We give a stochastic…

Probability · Mathematics 2019-10-10 Tomasz Klimsiak

We study an infinite horizon optimal stopping problem which arises naturally in the optimal timing of a firm/project sale or in the valuation of natural resources: the functional to be maximised is a sum of a discounted running reward and a…

Optimization and Control · Mathematics 2016-12-08 Jan Palczewski , Lukasz Stettner

In this paper, we study the finite-horizon problem of an economic agent's optimal consumption, investment, and job-switching decisions. The key new feature of our model is that the job-switching cost is time-varying. This extension leads to…

Optimization and Control · Mathematics 2026-03-10 Gugyum Ha , Junkee Jeon , Jihoon Ok

We give a complete solution to the problem of minimizing the expected liquidity costs in presence of a general drift when the underlying market impact model has linear transient price impact with exponential resilience. It turns out that…

Trading and Market Microstructure · Quantitative Finance 2013-03-05 Christopher Lorenz , Alexander Schied