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We show how the Stefan type free boundary problem with random diffusion in one space dimension can be approximated by the corresponding free boundary problem with nonlocal diffusion. The approximation problem is a slightly modified version…

Analysis of PDEs · Mathematics 2020-03-13 Yihong Du , Wenjie Ni

In this paper, we study the optimal control problem for a company whose surplus process evolves as an upward jump diffusion with random return on investment. Three types of practical optimization problems faced by a company that can control…

Portfolio Management · Quantitative Finance 2016-11-04 Chuancun Yin , Kam Chuen Yuen

We consider a cross-diffusion system for which the diffusion of each species is governed solely by the aggregate density through a pressure law of logarithmic or fast diffusion type. The model is set over a one dimensional bounded interval,…

Analysis of PDEs · Mathematics 2026-03-20 Alpár R. Mészáros , Guy Parker

We consider a class of stochastic reaction-diffusion equations also having a stochastic perturbation on the boundary and we show that when the diffusion rate is much larger than the rate of reaction, it is possible to replace the SPDE by a…

Probability · Mathematics 2010-12-16 Sandra Cerrai , Mark Freidlin

We establish the first general regularity result for constrained optimal control problems arising naturally in mathematical physics and mathematical biology. Namely, we prove that for a large class of problems of the form ``maximise $\int…

Analysis of PDEs · Mathematics 2026-05-04 Lorenzo Ferreri , Idriss Mazari-Fouquer , Raphaël Prunier

We solve the problem of optimal stopping of a Brownian motion subject to the constraint that the stopping time's distribution is a given measure consisting of finitely-many atoms. In particular, we show that this problem can be converted to…

Optimization and Control · Mathematics 2017-07-07 Erhan Bayraktar , Christopher W. Miller

We consider impulse control problems in finite horizon for diffusions with decision lag and execution delay. The new feature is that our general framework deals with the important case when several consecutive orders may be decided before…

Probability · Mathematics 2007-05-23 Benjamin Bruder , Huyen Pham

We consider optimal stopping problems with finite-time horizon and state-dependent discounting. The underlying process is a one-dimensional linear diffusion and the gain function is time-homogeneous and difference of two convex functions.…

Probability · Mathematics 2022-01-19 Tiziano De Angelis

In the first part of this work, we analyzed a Dirichlet boundary control problem for an elliptic convection diffusion PDE and proposed a new hybridizable discontinuous Galerkin (HDG) method to approximate the solution. For the case of a 2D…

Numerical Analysis · Mathematics 2018-07-25 Weiwei Hu , Mariano Mateos , John R. Singler , Xiao Zhang , Yangwen Zhang

We study an optimal stopping problem with an unbounded, time-dependent and discontinuous reward function. This problem is motivated by the pricing of a variable annuity contract with guaranteed minimum maturity benefit, under the assumption…

Mathematical Finance · Quantitative Finance 2026-03-10 Anne Mackay , Marie-Claude Vachon

We study the infinite-horizon average (ergodic) risk sensitive control problem for diffusion processes under a general structural hypothesis: there is a partition of state space into two subsets, where the controlled diffusion process…

Optimization and Control · Mathematics 2025-12-01 Sumith Reddy Anugu , Guodong Pang

In control theory, typically a nominal model is assumed based on which an optimal control is designed and then applied to an actual (true) system. This gives rise to the problem of performance loss due to the mismatch between the true model…

Optimization and Control · Mathematics 2023-09-19 Somnath Pradhan , Serdar Yuksel

In this paper, we solve an open problem and obtain a general maximum principle for a stochastic optimal control problem where the control domain is an arbitrary non-empty set and all the coefficients (especially the diffusion term and the…

Optimization and Control · Mathematics 2023-02-08 Weijun Meng , Jingtao Shi , Tianxiao Wang , Ji-Feng Zhang

We derive explicit pointwise bounds for the spatial derivative $\left| \frac{\partial V}{\partial x} \right|$ of solutions to linear parabolic PDEs with Neumann boundary conditions. The bound is fully explicit in the sense that it depends…

Probability · Mathematics 2025-12-25 C Ciccarella

This paper investigates the robustness of stochastic optimal control for controlled regime switching diffusions. We consider systems driven by both continuous fluctuations and discrete regime changes, allowing for model misspecification in…

Optimization and Control · Mathematics 2025-11-24 Somnath Pradhan , Dinesh Rathia

We consider the problem of stopping a diffusion process with a payoff functional that renders the problem time-inconsistent. We study stopping decisions of naive agents who reoptimize continuously in time, as well as equilibrium strategies…

Mathematical Finance · Quantitative Finance 2021-07-15 Yu-Jui Huang , Adrien Nguyen-Huu , Xun Yu Zhou

In this paper, we suggest a technique to avoid order reduction in time when integrating reaction-diffusion boundary value problems under non-homogeneous boundary conditions with exponential splitting methods. More precisely, we consider…

Numerical Analysis · Mathematics 2017-05-05 Isaías Alonso-Mallo , Begoña Cano , Nuria Reguera

This work presents a comprehensive framework for enhanced diffusion modeling in fluid-structure interactions by combining the Immersed Boundary Method (IBM) with stochastic trajectories and high-order spectral boundary conditions. Using…

Analysis of PDEs · Mathematics 2024-10-31 Rômulo Damasclin Chaves dos Santos , Jorge Henrique de Oliveira Sales

For a class of Bellman equations in bounded domains we prove that sub- and supersolutions whose growth at the boundary is suitably controlled must be constant. The ellipticity of the operator is assumed to degenerate at the boundary and a…

Analysis of PDEs · Mathematics 2015-05-07 Martino Bardi , Annalisa Cesaroni , Luca Rossi

A mutualist model with nonlocal diffusions and a free boundary is first considered. We prove that this problem has a unique solution defined $t\ge0$, and its dynamics are governed by a spreading-vanishing dichotomy. Some criteria for…

Analysis of PDEs · Mathematics 2021-10-28 Lei Li , Mingxin Wang