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This paper concerns discrete-time infinite-horizon stochastic control systems with Borel state and action spaces and universally measurable policies. We study optimization problems on strategic measures induced by the policies in these…

Optimization and Control · Mathematics 2023-12-22 Huizhen Yu

We study a stochastic, continuous time model on a finite horizon for a firm that produces a single good. We model the production capacity as an Ito diffusion controlled by a nondecreasing process representing the cumulative investment. The…

Optimization and Control · Mathematics 2013-12-03 Maria B. Chiarolla , Giorgio Ferrari

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 this paper we investigate a utility maximization problem with drift uncertainty in a multivariate continuous-time Black-Scholes type financial market which may be incomplete. We impose a constraint on the admissible strategies that…

Portfolio Management · Quantitative Finance 2021-11-04 Jörn Sass , Dorothee Westphal

Reflected diffusions naturally arise in many problems from applications ranging from economics and mathematical biology to queueing theory. In this paper we consider a class of infinite time-horizon singular stochastic control problems for…

Optimization and Control · Mathematics 2017-11-13 Giorgio Ferrari

Efficiency of search for randomly distributed targets is a prominent problem in many branches of the sciences. For the stochastic process of L\'evy walks, a specific range of optimal efficiencies was suggested under variation of search…

Statistical Mechanics · Physics 2021-06-11 S. Mohsen J. Khadem , Sabine H. L. Klapp , Rainer Klages

In this work, we investigate the optimal control problem for continuous-time Markov decision processes with the random impact of the environment. We provide conditions to show the existence of optimal controls under finite-horizon criteria.…

Optimization and Control · Mathematics 2020-06-23 Jinghai Shao , Kun Zhao

The weak noise limit of dissipative dynamical systems is often the most fascinating one. In such a case fluctuations can interact with a rich complexity frequently hidden in deterministic systems to give rise of completely new phenomena…

Statistical Mechanics · Physics 2021-09-15 Jakub Spiechowicz , Jerzy Łuczka

Following some recent works, we investigate the problem of optimising the total population size for logistic diffusive models with respect to resources distributions. Using the spatially heterogeneous Fisher-KPP equation, we obtain a…

Optimization and Control · Mathematics 2020-10-22 Idriss Mazari , Domenec Ruiz-Balet

We consider the problem of optimal investment with intermediate consumption in a general semimartingale model of an incomplete market, with preferences being represented by a utility stochastic field. We show that the key conclusions of the…

Portfolio Management · Quantitative Finance 2017-09-20 Huy N. Chau , Andrea Cosso , Claudio Fontana , Oleksii Mostovyi

We analyze a pair of diffusion equations which are derived in the infinite system--size limit from a microscopic, individual--based, stochastic model. Deviations from the conventional Fickian picture are found which ultimately relate to the…

Statistical Mechanics · Physics 2015-05-18 Duccio Fanelli , Alan J. McKane

We prove a sufficient stochastic maximum principle for the optimal control of a regime-switching diffusion model. We show the connection to dynamic programming and we apply the result to a quadratic loss minimization problem, which can be…

Optimization and Control · Mathematics 2014-01-31 Catherine Donnelly

A finite horizon optimal stopping problem for an infinite dimensional diffusion $X$ is analyzed by means of variational techniques. The diffusion is driven by a SDE on a Hilbert space $\mathcal{H}$ with a non-linear diffusion coefficient…

Optimization and Control · Mathematics 2015-02-03 M. B. Chiarolla , T. De Angelis

In this paper we derive novel change of variable formulas for stochastic integrals w.r.t. a time-changed Brownian motion where we assume that the time-change is a general increasing stochastic process with finitely many jumps in a bounded…

Probability · Mathematics 2024-07-04 Giulia Di Nunno , Hannes Haferkorn , Asma Khedher , Michèle Vanmaele

In this paper, we aim to develop the theory of optimal stochastic control for branching diffusion processes where both the movement and the reproduction of the particles depend on the control. More precisely, we study the problem of…

Probability · Mathematics 2016-09-19 Julien Claisse

We consider a class of exit time stochastic control problems for diffusion processes with discounted criterion, where the controller can utilize a given amount of resource, called "fuel". In contrast to the vast majority of existing…

Optimization and Control · Mathematics 2015-01-30 Dmitry B. Rokhlin , Georgii Mironenko

The paper investigates the consumption-investment problem for an investor with Epstein-Zin utility in an incomplete market. A non-Markovian environment with unbounded parameters is considered, which is more realistic in practical financial…

Mathematical Finance · Quantitative Finance 2025-10-27 Zixin Feng , Dejian Tian , Harry Zheng

We consider a deterministic continuous time model of monopolistic firm, which chooses production and pricing strategies of a single good. Firm's goal is to maximize the discounted profit over infinite time horizon. The no-backlogging…

Optimization and Control · Mathematics 2016-01-19 Dmitry B. Rokhlin , Georgii Mironenko

We study the problem of maximising terminal utility for an agent facing model uncertainty, in a frictionless discrete-time market with one safe asset and finitely many risky assets. We show that an optimal investment strategy exists if the…

Mathematical Finance · Quantitative Finance 2020-07-10 Miklós Rásonyi , Andrea Meireles-Rodrigues

This paper investigates the optimal control problem for a class of parabolic equations where the diffusion coefficient is influenced by a control function acting nonlocally. Specifically, we consider the optimization of a cost functional…

Optimization and Control · Mathematics 2025-03-11 Stefana-Lucia Anita , Luca Di Persio