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An optimal control problem is considered for a stochastic differential equation with the cost functional determined by a backward stochastic Volterra integral equation (BSVIE, for short). This kind of cost functional can cover the general…

Optimization and Control · Mathematics 2019-11-13 Hanxiao Wang , Jiongmin Yong

This paper is concerned with a kind of risk-sensitive optimal control problem for fully coupled forward-backward stochastic systems. The control variable enters the diffusion term of the state equation and the control domain is not…

Optimization and Control · Mathematics 2023-04-11 Jingtao Lin , Jingtao Shi

In this paper, we study an optimal control problem of linear backward stochastic differential equation (BSDE) with quadratic cost functional under partial information. This problem is solved completely and explicitly by using a stochastic…

Optimization and Control · Mathematics 2020-12-16 Guangchen Wang , Wencan Wang , Zhiguo Yan

We consider an infinite horizon discounted optimal control problem for piecewise deterministic Markov processes, where a piecewise open-loop control acts continuously on the jump dynamics and on the deterministic flow. For this class of…

Optimization and Control · Mathematics 2015-12-08 Elena Bandini

The maximum principle for optimal control problems of fully coupled forward-backward doubly stochastic differential equations (FBDSDEs in short) in the global form is obtained, under the assumptions that the diffusion coefficients do not…

Optimization and Control · Mathematics 2012-05-28 Liangquan Zhang , Yufeng Shi

In this paper,we mainly focus on the numerical solution of high-dimensional stochastic optimal control problem driven by fully-coupled forward-backward stochastic differential equations (FBSDEs in short) through deep learning. We first…

Optimization and Control · Mathematics 2024-08-21 Shaolin Ji , Shige Peng , Ying Peng , Xichuan Zhang

In this paper, we investigate the controlled system described by forward-backward stochastic differential equations with the control contained in drift, diffusion and generator of BSDE. A new verification theorem is derived within the…

Optimization and Control · Mathematics 2012-05-28 Liangquan Zhang

A robust control problem is considered in this paper, where the controlled stochastic differential equations (SDEs) include ambiguity parameters and their coefficients satisfy non-Lipschitz continuous and non-linear growth conditions, the…

Mathematical Finance · Quantitative Finance 2022-08-24 Zhou Yang , Jing Zhang , Chao Zhou

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

This paper is concerned with a Stackelberg game of backward stochastic differential equations (BSDEs), where the coefficients of the backward system and the cost functionals are deterministic, and the control domain is convex. Necessary and…

Optimization and Control · Mathematics 2019-04-18 Yueyang Zheng , Jingtao Shi

In this introductory paper, we discuss how quantitative finance problems under some common risk factor dynamics for some common instruments and approaches can be formulated as time-continuous or time-discrete forward-backward stochastic…

Computational Finance · Quantitative Finance 2019-11-29 Bernhard Hientzsch

Using a recently introduced representation of the second order adjoint state as the solution of a function-valued backward stochastic partial differential equation (SPDE), we calculate the viscosity super- and subdifferential of the value…

Probability · Mathematics 2024-06-27 Wilhelm Stannat , Lukas Wessels

In this paper, we study the maximum principle for stochastic optimal control problems of forward-backward stochastic difference systems (FBS{\Delta}Ss). Two types of FBS{\Delta}Ss are investigated. The first one is described by a partially…

Optimization and Control · Mathematics 2019-01-01 Shaolin Ji , Haodong Liu

We consider a kind of stochastic exit time optimal control problems, in which the cost function is defined through a nonlinear backward stochastic differential equation. We study the regularity of the value function for such a control…

Probability · Mathematics 2016-03-15 Rainer Buckdahn , Tianyang Nie

This paper introduces a new recursive stochastic optimal control problem driven by a forward-backward stochastic differential equations (FBSDEs), where the ter?minal time varies according to the constraints of the state of the forward…

Optimization and Control · Mathematics 2023-04-17 Jiaqi Wang , Shuzhen Yang

We are interested in stochastic control problems coming from mathematical finance and, in particular, related to model uncertainty, where the uncertainty affects both volatility and intensity. This kind of stochastic control problems is…

Probability · Mathematics 2014-05-15 Sébastien Choukroun , Andrea Cosso

In this paper we study zero-sum two-player stochastic differential games with the help of theory of Backward Stochastic Differential Equations (BSDEs). At the one hand we generalize the results of the pioneer work of Fleming and Souganidis…

Probability · Mathematics 2011-02-19 Rainer Buckdahn , Juan Li

The paper studies the First Order BSPDEs (Backward Stochastic Partial Differential Equations) suggested earlier for a case of multidimensional state domain with a boundary. These equations represent analogs of Hamilton-Jacobi-Bellman…

Mathematical Finance · Quantitative Finance 2018-10-31 Nikolai Dokuchaev

This paper investigates a new class of homogeneous stochastic control problems with cone control constraints, extending the classical homogeneous stochastic linear-quadratic (LQ) framework to encompass nonlinear system dynamics and…

Optimization and Control · Mathematics 2025-07-30 Ying Hu , Xiaomin Shi , Zuo Quan Xu

In this paper, we propose a deep learning based numerical scheme for strongly coupled FBSDEs, stemming from stochastic control. It is a modification of the deep BSDE method in which the initial value to the backward equation is not a free…

Optimization and Control · Mathematics 2023-02-10 Kristoffer Andersson , Adam Andersson , Cornelis W. Oosterlee