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We consider a non-Markovian optimal stopping problem on finite horizon. We prove that the value process can be represented by means of a backward stochastic differential equation (BSDE), defined on an enlarged probability space, containing…

Probability · Mathematics 2015-02-20 Marco Fuhrman , Huyên Pham , Federica Zeni

In this paper, we establish a local representation theorem for generators of reflected backward stochastic differential equations (RBSDE), whose generators are continuous with linear growth. It generalizes some known representation theorems…

Probability · Mathematics 2017-02-01 Shiqiu Zheng , Shoumei Li

In this paper, we study the convergence rate between reflected backward stochastic differential equations with quadratic generators and their penalized BSDEs. Using techniques of BMO martingales, we prove the convergence rate is at order…

Probability · Mathematics 2026-05-28 Guangyan Jia , Peng Luo , Mengbo Zhu

In this paper we study by probabilistic techniques the convergence of the value function for a two-scale, infinite-dimensional, stochastic controlled system as the ratio between the two evolution speeds diverges. The value function is…

Optimization and Control · Mathematics 2018-09-12 Giuseppina Guatteri , Gianmario Tessitore

We consider an optimal switching problem where the terminal reward depends on the entire control trajectory. We show existence of an optimal control by applying a probabilistic technique based on the concept of Snell envelopes. We then…

Optimization and Control · Mathematics 2019-11-12 Magnus Perninge

We consider a robust impulse control problem in finite horizon where the underlying uncertainty stems from an impulsively and continuously controlled functional stochastic differential equation (FSDE) driven by Brownian motion. We assume…

Optimization and Control · Mathematics 2021-03-31 Magnus Perninge

We introduce the concept of singular recursive utility. This leads to a kind of singular BSDE which, to the best of our knowledge, has not been studied before. We show conditions for existence and uniqueness of a solution for this kind of…

Optimization and Control · Mathematics 2017-03-17 Kristina R. Dahl , Bernt Øksendal

In this paper, we introduce a new type of backward stochastic differential equations (BSDEs) with infinite anticipation, where the generator depends on the entire future values of the solution in infinite horizon. We show that the new BSDEs…

Probability · Mathematics 2025-11-20 Guanwei Cheng , Shuzhen Yang

In this paper, we propose a direct solution method for optimal switching problems of one-dimensional diffusions. This method is free from conjectures about the form of the value function and switching strategies, or does not require the…

Optimization and Control · Mathematics 2007-05-23 Masahiko Egami

Our study is dedicated to the probabilistic representation and numerical approximation of solutions to coupled systems of variational inequalities. The dynamics of each component of the solution is driven by a different linear parabolic…

Probability · Mathematics 2014-01-10 Romuald Elie , Idris Kharroubi

In this paper, we study a multidimensional backward stochastic differential equation (BSDE) with an additional rough drift (rough BSDE), and give the existence and uniqueness of the adapted solution, either when the terminal value and the…

Probability · Mathematics 2024-01-12 Jiahao Liang , Shanjian Tang

This paper studies the mixed zero-sum stochastic differential game problem. We allow the functionals and dynamics to be of polynomial growth. The problem is formulated as an extended doubly reflected BSDEs with a specific generator. We show…

Probability · Mathematics 2021-03-05 Brahim El Asri , Nacer Ourkiya

This paper extends our previous work to continuous-time optimal stopping, focusing on American options in an exploratory setting. Our first contribution is an entropy-regularized penalization scheme, inspired by classical penalization…

Mathematical Finance · Quantitative Finance 2026-03-04 Daniel Chee , Noufel Frikha , Libo Li

We study penalization coupled with time discretization for decoupled Markovian doubly reflected BSDEs with obstacles \(p_b(t,X_t)\le Y_t\le p_w(t,X_t)\). The DRBSDE is approximated by a penalized BSDE with parameter \(\lambda\) and…

Probability · Mathematics 2026-04-13 Wonjae Lee , Hyungbin Park

This paper studies the bail-out optimal dividend problem with regime switching under the constraint that the cumulative dividend strategy is absolutely continuous. We confirm the optimality of the regime-modulated refraction-reflection…

Mathematical Finance · Quantitative Finance 2020-02-10 Kei Noba , José-Luis Pérez , Xiang Yu

This paper addresses the existence and uniqueness of solutions to Reflected Generalized Backward Stochastic Differential Equations (GRBSDEs) within a general filtration that supports a Brownian motion and an independent integer-valued…

Probability · Mathematics 2026-03-09 Badr Elmansouri , Mohamed El Otmani

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

The paper studies the First Order BSPDEs (Backward Stochastic Partial Differential Equations) suggested earlier for a case of multidimensional state domain with a boundary. These equations represent analogs of Hamilton-Jacobi-Bellman…

Mathematical Finance · Quantitative Finance 2018-10-31 Nikolai Dokuchaev

A robust control problem is considered in this paper, where the controlled stochastic differential equations (SDEs) include ambiguity parameters and their coefficients satisfy non-Lipschitz continuous and non-linear growth conditions, the…

Mathematical Finance · Quantitative Finance 2022-08-24 Zhou Yang , Jing Zhang , Chao Zhou

We analyze a class of multidimensional linear-quadratic stochastic control problems with random coefficients, motivated by multi-asset optimal trade execution. The problems feature non-diffusive controlled state dynamics and a terminal…

Optimization and Control · Mathematics 2026-01-08 Julia Ackermann , Thomas Kruse , Petr Petrov , Alexandre Popier