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The goal of this paper is to solve backward doubly stochastic differential equation (BDSDE, in short) under weak assumptions on the data. The first part is devoted to the development of some new technical aspects of stochastic calculus…

Probability · Mathematics 2011-08-04 Auguste Aman

We demonstrate that backward stochastic differential equations (BSDE) may be reformulated as ordinary functional differential equations on certain path spaces. In this framework, neither It\^{o}'s integrals nor martingale representation…

Probability · Mathematics 2012-11-20 Gechun Liang , Terry Lyons , Zhongmin Qian

In this paper, we first give the existence and uniqueness theorems for generalized mean-filed delay stochastic differential equations (GMFDSDEs) and mean-field anticipated backward stochastic differential equations (MFABSDEs). Then we study…

Optimization and Control · Mathematics 2017-08-14 Hancheng Guo , Jie Xiong , Jiayu Zheng

This paper is concerned with a general maximum principle for the fully coupled forward-backward stochastic optimal control problem with jumps, where the control domain is not necessarily convex, within the progressively measurable…

Optimization and Control · Mathematics 2025-03-27 Bin Wang , Yu Si , Jingtao Shi

We study a general class of fully coupled backward-forward stochastic differential equations of mean-field type (MF-BFSDE). We derive existence and uniqueness results for such a system under weak monotonicity assumptions and without the…

Probability · Mathematics 2020-03-03 Yinggu Chen , Boualem Djehiche , Said Hamadene

We introduce the deep multi-FBSDE method for robust approximation of coupled forward-backward stochastic differential equations (FBSDEs), focusing on cases where the deep BSDE method of Han, Jentzen, and E (2018) fails to converge. To…

Numerical Analysis · Mathematics 2025-06-03 Kristoffer Andersson , Adam Andersson , Cornelis W. Oosterlee

Benchmarks in the utility function have various interpretations, including performance guarantees and risk constraints in fund contracts and reference levels in cumulative prospect theory. In most literature, benchmarks are a deterministic…

Optimization and Control · Mathematics 2023-12-05 Zongxia Liang , Yang Liu , Litian Zhang

Submodular function maximization is a fundamental combinatorial optimization problem with plenty of applications -- including data summarization, influence maximization, and recommendation. In many of these problems, the goal is to find a…

Data Structures and Algorithms · Computer Science 2023-09-04 Yanhao Wang , Yuchen Li , Francesco Bonchi , Ying Wang

We are concerned with high-dimensional coupled FBSDE systems approximated by the deep BSDE method of Han et al. (2018). It was shown by Han and Long (2020) that the errors induced by the deep BSDE method admit a posteriori estimate…

Numerical Analysis · Mathematics 2025-01-22 Balint Negyesi , Zhipeng Huang , Cornelis W. Oosterlee

We a controlled system driven by a coupled forward-backward stochastic differential equation (FBSDE) with a non degenerate diffusion matrix. The cost functional is defined by the solution of the controlled backward stochastic differential…

Optimization and Control · Mathematics 2017-02-02 Khaled Bahlali , Omar Kebiri , Brahim Mezerdi , Ahmed Mtiraoui

In this paper we present two numerical schemes of approximating solutions of backward doubly stochastic differential equations (BDSDEs for short). We give a method to discretize a BDSDE. And we also give the proof of the convergence of…

Probability · Mathematics 2008-06-05 Yufeng Shi , Weiqiang Yang , Jing Yuan

This paper introduces a statistical treatment of inverse problems constrained by models with stochastic terms. The solution of the forward problem is given by a distribution represented numerically by an ensemble of simulations. The goal is…

Optimization and Control · Mathematics 2019-04-17 Emil M. Constantinescu , Noemi Petra , Julie Bessac , Cosmin G. Petra

We study the utility maximization problem for power utility random fields in a semimartingale financial market, with and without intermediate consumption. The notion of an opportunity process is introduced as a reduced form of the value…

Portfolio Management · Quantitative Finance 2010-11-03 Marcel Nutz

This paper focuses on the study of infinite horizon fully coupled nonlinear forward-backward stochastic difference equations (FBS$\bigtriangleup$Es). Firstly, we establish a pair of priori estimates for the solutions to forward stochastic…

Optimization and Control · Mathematics 2025-06-24 Xinyu Ma , Xun Li , Qingxin Meng

Motivated by the idea of imposing paralleling computing on solving stochastic differential equations (SDEs), we introduce a new Domain Decomposition Scheme to solve forward-backward stochastic differential equations (FBSDEs) parallely. We…

Numerical Analysis · Mathematics 2010-08-03 Minh-Binh Tran

We define fully coupled forward-backward stochastic differential equations on spaces related to continuous time, finite state Markov Chains. Existence and uniqueness results of the fully coupled forward-backward stochastic differential…

Probability · Mathematics 2015-04-29 Shaolin Ji , Haodong Liu , Xinling Xiao

PDE-constrained optimization problems are often treated using the reduced formulation where the PDE constraints are eliminated. This approach is known to be more computationally feasible than other alternatives at large scales. However, the…

Computational Engineering, Finance, and Science · Computer Science 2021-07-05 Sagi Buchatsky , Eran Treister

This paper is concerned with a stochastic recursive optimal control problem with time delay, where the controlled system is described by a stochastic differential delayed equation (SDDE) and the cost functional is formulated as the solution…

Optimization and Control · Mathematics 2014-08-26 Jingtao Shi , Huanshui Zhang

The aim of this work is to develop general optimization methods for finite difference schemes used to approximate linear differential equations. The specific case of the transport equation is exposed. In particular, the minimization of the…

Analysis of PDEs · Mathematics 2007-05-23 Claire David , Pierre Sagaut

We study optimal stochastic control problems of general coupled systems of forward-backward stochastic differential equations with jumps. By means of the It\^o-Ventzell formula the system is transformed to a controlled backward stochastic…

Optimization and Control · Mathematics 2017-01-12 Bernt Øksendal , Agnès Sulem , Tusheng Zhang
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