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Consider the optimal stopping problem of a one-dimensional diffusion with positive discount. Based on Dynkin's characterization of the value as the minimal excessive majorant of the reward and considering its Riesz representation, we give…

Probability · Mathematics 2013-07-03 Fabián Crocce , Ernesto Mordecki

Planning problems where effects of actions are non-deterministic can be modeled as Markov decision processes. Planning problems are usually goal-directed. This paper proposes several techniques for exploiting the goal-directedness to…

Artificial Intelligence · Computer Science 2013-02-08 Nevin Lianwen Zhang , Weihong Zhang

In this paper we study simulation based optimization algorithms for solving discrete time optimal stopping problems. This type of algorithms became popular among practioneers working in the area of quantitative finance. Using large…

Optimization and Control · Mathematics 2009-09-22 Denis Belomestny

We address an optimal stopping problem over the set of Bermudan-type strategies $\Theta$ (which we understand in a more general sense than the stopping strategies for Bermudan options in finance) and with non-linear operators (non-linear…

Optimization and Control · Mathematics 2023-01-27 Miryana Grigorova , Marie-Claire Quenez , Peng Yuan

In this paper we consider the following optimal stopping problem $$V^{\omega}_{\rm A}(s) = \sup_{\tau\in\mathcal{T}} \mathbb{E}_{s}[e^{-\int_0^\tau \omega(S_w) dw} g(S_\tau)],$$ where the process $S_t$ is a jump-diffusion process,…

Mathematical Finance · Quantitative Finance 2021-01-07 Jonas Al-Hadad , Zbigniew Palmowski

We study an optimal stopping problem when the state process is governed by a general Feller process. In particular, we examine viscosity properties of the associated value function with no a priori assumption on the stochastic differential…

Optimization and Control · Mathematics 2018-03-13 Suhang Dai , Olivier Menoukeu-Pamen

In this work we consider optimal stopping problems with conditional convex risk measures called optimised certainty equivalents. Without assuming any kind of time-consistency for the underlying family of risk measures, we derive a novel…

Mathematical Finance · Quantitative Finance 2014-12-16 Denis Belomestny , Volker Kraetschmer

We study the optimal stopping problem for a monotonous dynamic risk measure induced by a BSDE with jumps in the Markovian case. We show that the value function is a viscosity solution of an obstacle problem for a partial…

Optimization and Control · Mathematics 2014-07-01 Roxana Dumitrescu , Marie-Claire Quenez , Agnès Sulem

We use probabilistic methods to characterise time dependent optimal stopping boundaries in a problem of multiple optimal stopping on a finite time horizon. Motivated by financial applications we consider a payoff of immediate stopping of…

Optimization and Control · Mathematics 2017-01-10 Tiziano De Angelis , Yerkin Kitapbayev

Time-irreversible stochastic processes are frequently used in natural sciences to explain non-equilibrium phenomena and to design efficient stochastic algorithms. Our main goal in this thesis is to analyse their dynamics by means of large…

Probability · Mathematics 2021-09-21 Mikola C. Schlottke

In this paper we derive a technique of obtaining limit theorems for suprema of L\'evy processes from their random walk counterparts. For each $a>0$, let $\{Y^{(a)}_n:n\ge 1\}$ be a sequence of independent and identically distributed random…

Probability · Mathematics 2011-05-23 Kamil Marcin Kosinski , Onno Boxma , Bert Zwart

In this paper, we are interested in linear prediction of a particular kind of stochastic process, namely a marked temporal point process. The observations are event times recorded on the real line, with marks attached to each event. We show…

Methodology · Statistics 2022-07-18 Maximilian Aigner , Valérie Chavez-Demoulin

In this paper we consider the problem of finding stable maxima of expensive (to evaluate) functions. We are motivated by the optimisation of physical and industrial processes where, for some input ranges, small and unavoidable variations in…

Machine Learning · Statistics 2019-02-22 Alistair Shilton , Sunil Gupta , Santu Rana , Svetha Venkatesh , Majid Abdolshah , Dang Nguyen

Previous work has separately addressed different forms of action, state and action-state entropy regularization, pure exploration and space occupation. These problems have become extremely relevant for regularization, generalization,…

Machine Learning · Computer Science 2023-02-03 Dmytro Grytskyy , Jorge Ramírez-Ruiz , Rubén Moreno-Bote

We generalize the notion of strong stationary time and we give a representation formula for the hitting time to a target set in the general case of non-reversible Markov processes.

Probability · Mathematics 2016-06-24 Francesco Manzo , Elisabetta Scoppola

We propose a macroscopic market making model \`a la Avellaneda-Stoikov, using continuous processes for orders instead of discrete point processes. The model intends to bridge the gap between market making and optimal execution problems,…

Mathematical Finance · Quantitative Finance 2025-04-08 Ivan Guo , Shijia Jin , Kihun Nam

In this paper we demonstrate that the Riesz representation of excessive functions is a useful and enlightening tool to study optimal stopping problems. After a short general discussion of the Riesz representation we concretize, firstly, on…

Probability · Mathematics 2015-10-21 Sören Christensen , Paavo Salminen

A general result on the method of randomized stopping is proved. It is applied to optimal stopping of controlled diffusion processes with unbounded coefficients to reduce it to an optimal control problem without stopping. This is motivated…

Probability · Mathematics 2008-05-15 Istvan Gyongy , David Siska

We study a specific class of finite-horizon mean field optimal stopping problems by means of the dynamic programming approach. In particular, we consider problems where the state process is not affected by the stopping time. Such problems…

Optimization and Control · Mathematics 2025-03-07 Andrea Cosso , Laura Perelli

Efficient representations and solutions for large decision problems with continuous and discrete variables are among the most important challenges faced by the designers of automated decision support systems. In this paper, we describe a…

Artificial Intelligence · Computer Science 2011-10-04 C. Guestrin , M. Hauskrecht , B. Kveton