English
Related papers

Related papers: Optimal stopping in a general framework

200 papers

We describe the solution of an optimal stopping problem for a stable L\'evy process killed at state-dependent rate, which can be seen as a model for bankruptcy. The killing rate is chosen in such a way that the killed process remains…

Probability · Mathematics 2024-02-29 K. van Schaik , A. R. Watson , X. Xu

We consider a dynamic programming problem with arbitrary state space and bounded rewards. Is it possible to define in an unique way a limit value for the problem, where the "patience" of the decision-maker tends to infinity ? We consider,…

Optimization and Control · Mathematics 2013-01-04 Jérôme Renault

We study an optimal stopping problem under non-exponential discounting, where the state process is a multi-dimensional continuous strong Markov process. The discount function is taken to be log sub-additive, capturing decreasing impatience…

Mathematical Finance · Quantitative Finance 2021-07-14 Yu-Jui Huang , Zhenhua Wang

This paper considers online optimization for a system that performs a sequence of back-to-back tasks. Each task can be processed in one of multiple processing modes that affect the duration of the task, the reward earned, and an additional…

Optimization and Control · Mathematics 2024-01-17 Michael J. Neely

Recently, there has been a surge in interest in safe and robust techniques within reinforcement learning (RL). Current notions of risk in RL fail to capture the potential for systemic failures such as abrupt stoppages from system failures…

Systems and Control · Computer Science 2019-10-09 David Mguni

Adaptive optimal control using value iteration initiated from a stabilizing control policy is theoretically analyzed in terms of stability of the system during the learning stage without ignoring the effects of approximation errors. This…

Optimization and Control · Mathematics 2017-10-25 Ali Heydari

A multi-source quickest detection problem is considered. Assume there are two independent Poisson processes $X^{1}$ and $X^{2}$ with disorder times $\theta_{1}$ and $\theta_{2}$, respectively; that is, the intensities of $X^1$ and $X^2$…

Computational Engineering, Finance, and Science · Computer Science 2007-07-13 Erhan Bayraktar , H. Vincent Poor

We use martingale and stochastic analysis techniques to study a continuous-time optimal stopping problem, in which the decision maker uses a dynamic convex risk measure to evaluate future rewards. We also find a saddle point for an…

Probability · Mathematics 2009-11-23 Erhan Bayraktar , Ioannis Karatzas , Song Yao

Bruss's odds theorem \cite{Bruss1} addresses the problem of determining the optimal stopping time for sequences of independent indicator functions. In this note, we derive upper and lower bounds for the success probability under the optimal…

Probability · Mathematics 2025-11-27 A. M. Kabaeva , A. V. Logachov , A. A. Yambartsev

Given a spectrally negative L\'evy process $X$ drifting to infinity, (inspired on the early ideas of Shiryaev (2002)) we are interested in finding a stopping time that minimises the $L^p$ distance ($p>1$) with $g$, the last time $X$ is…

Probability · Mathematics 2023-04-05 Erik J. Baurdoux , J. M. Pedraza

In this paper we provide a theoretical analysis of Variable Annuities with a focus on the holder's right to an early termination of the contract. We obtain a rigorous pricing formula and the optimal exercise boundary for the surrender…

Mathematical Finance · Quantitative Finance 2024-05-06 Tiziano De Angelis , Alessandro Milazzo , Gabriele Stabile

We consider the optimal stopping of a class of spectrally negative jump diffusions. We state a set of conditions under which the value is shown to have a representation in terms of an ordinary nonlinear programming problem. We establish a…

Pricing of Securities · Quantitative Finance 2013-02-19 Luis H. R. Alvarez E. , Pekka Matomäki , Teppo A. Rakkolainen

Under the hypothesis of convergence in probability of a sequence of c\`{a}dl\`{a}g processes $(X^n)\_n$ to a c\`{a}dl\`{a}g process $X$, we are interested in the convergence of corresponding values in optimal stopping and also in the…

Probability · Mathematics 2007-05-23 François Coquet , Sandrine Toldo

We propose and analyze a continuous-time robust reinforcement learning framework for optimal stopping under ambiguity. In this framework, an agent chooses a robust exploratory stopping time motivated by two objectives: robust…

Optimization and Control · Mathematics 2026-04-17 Junyan Ye , Hoi Ying Wong , Kyunghyun Park

We study the repeated optimal stopping problem, in which the same optimal stopping instance with an unknown distribution is solved repeatedly over $T$ rounds. We aim to simultaneously achieve strong per-round performance guarantees relative…

Data Structures and Algorithms · Computer Science 2026-05-18 Tsubasa Harada , Yasushi Kawase , Hanna Sumita

This paper deals with the convergence time analysis of a class of fixed-time stable systems with the aim to provide a new non-conservative upper bound for its settling time. Our contribution is fourfold. First, we revisit the well-known…

Optimization and Control · Mathematics 2019-07-23 R. Aldana-López , D. Gómez-Gutiérrez , E. Jiménez-Rodríguez , J. D. Sánchez-Torres , M. Defoort

We consider a new type of optimal stopping problems where the absorbing boundary moves as the state process X attains new maxima S. More specifically, we set the absorbing boundary as S-b where b is a certain constant. This problem is…

Probability · Mathematics 2015-04-15 Masahiko Egami , Tadao Oryu

Suppose $N$ independent Bernoulli trials are observed sequentially at random times of a mixed binomial process. The task is to maximise, by using a nonanticipating stopping strategy, the probability of stopping at the last success. We focus…

Probability · Mathematics 2024-10-22 Alexander Gnedin , Zakaria Derbazi

In this study, we consider an optimal control problem driven by a stochastic differential system with a stopping time terminal cost functional. We establish the stochastic maximum principle for this new kind of an optimal control problem by…

Optimization and Control · Mathematics 2018-12-11 Shuzhen Yang

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