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In this paper, we present a novel method for computing the asymptotic values of both the optimal threshold, and the probability of success in sequences of optimal stopping problems. This method, based on the resolution of a first-order…

Probability · Mathematics 2022-05-18 L. Bayón , P. Fortuny , J. M. Grau , A. M. Oller-Marcén , M. M. Ruiz

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

The classical secretary problem has been generalized over the years into several directions. In this paper we confine our interest to those generalizations which have to do with the more general problem of stopping on a last observation of…

Performance · Computer Science 2017-05-29 Guy Louchard

We consider optimal stopping problems, in which a sequence of independent random variables is drawn from a known continuous density. The objective of such problems is to find a procedure which maximizes the expected reward; this is often…

Probability · Mathematics 2020-12-07 Hugh Entwistle , Christopher Lustri , Georgy Sofronov

This paper considers a variation of the full-information secretary problem where the random variables to be observed are independent but not necessary identically distributed. The main result is a sharp lower bound for the optimal win…

Probability · Mathematics 2018-12-12 Pieter C. Allaart , Jose A. Islas

We investigate an optimal stopping problem for the expected value of a discounted payoff on a regime-switching geometric Brownian motion under two constraints on the possible stopping times: only at exogenous random times and only during a…

Probability · Mathematics 2024-11-20 Takuji Arai , Masahiko Takenaka

This paper is concerned with estimating the intersection point of two densities, given a sample of both of the densities. This problem arises in classification theory. The main results provide lower bounds for the probability of the…

Statistics Theory · Mathematics 2007-12-18 Franz Merkl , Leila Mohammadi

In a classical optimal stopping problem the aim is to maximize the expected value of a functional of a diffusion evaluated at a stopping time. This note considers optimal stopping problems beyond this paradigm. We study problems in which…

Probability · Mathematics 2017-08-04 Vicky Henderson , David Hobson , Matthew Zeng

For the stochastic multi-armed bandit (MAB) problem from a constrained model that generalizes the classical one, we show that an asymptotic optimality is achievable by a simple strategy extended from the $\epsilon_t$-greedy strategy. We…

Optimization and Control · Mathematics 2018-05-04 Hyeong Soo Chang

We study a generalization of the multi-armed bandit problem with multiple plays where there is a cost associated with pulling each arm and the agent has a budget at each time that dictates how much she can expect to spend. We derive an…

Machine Learning · Statistics 2019-09-13 Alexander Luedtke , Emilie Kaufmann , Antoine Chambaz

We develop an approach for solving one-sided optimal stopping problems in discrete time for general underlying Markov processes on the real line. The main idea is to transform the problem into an auxiliary problem for the ladder height…

Probability · Mathematics 2018-10-29 Sören Christensen , Albrecht Irle

Candidates arrive sequentially for an interview process which results in them being ranked relative to their predecessors. Based on the ranks available at each time, one must develop a decision mechanism that selects or dismisses the…

Data Structures and Algorithms · Computer Science 2024-05-08 George V. Moustakides , Xujun Liu , Olgica Milenkovic

We present a general approach to the problem of determining tight asymptotic lower bounds for generalized central moments of the optimal alignment score of two independent sequences of i.i.d. random variables. At first, these are obtained…

Probability · Mathematics 2016-11-28 Ruoting Gong , Christian Houdré , Jüri Lember

We develop a method to solve, theoretically and numerically, general optimal stopping problems. Our general setting allows for multiple exercise rights, i.e., optimal multiple stopping, for a robust evaluation that accounts for model…

Many discrete-time optimal stopping problems are known to have more tractable limit forms based on a planar Poisson process. Using this tool we find a solution to the optimal stopping problem for i.i.d. sequence of $n$ discrete uniform…

Probability · Mathematics 2026-01-09 Alexander Gnedin

Robbins' problem of optimal stopping asks one to minimise the expected {\it rank} of observation chosen by some nonanticipating stopping rule. We settle a conjecture regarding the {\it value} of the stopped variable under the rule optimal…

Probability · Mathematics 2019-07-10 Alexander Gnedin , Alexander Iksanov

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 analyze an optimal stopping problem with a series of inequality-type and equality-type expectation constraints in a general non-Markovian framework. We show that the optimal stopping problem with expectation constraints (OSEC) in an…

Optimization and Control · Mathematics 2023-02-10 Erhan Bayraktar , Song Yao

We consider a constrained version of the shortest path problem on the complete graphs whose edges have independent random lengths and costs. We establish the asymptotic value of the minimum length as a function of the cost-budget within a…

Combinatorics · Mathematics 2021-11-16 Alan Frieze , Tomasz Tkocz

The odds theorem and the corresponding solution algorithm (odds algorithm) are tools to solve a wide range of optimal stopping problems. Its generality and tractability have caught much attention. (Google for instance "Bruss odds" to obtain…

Probability · Mathematics 2012-12-07 Rémi Dendievel
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