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We characterize the value of swing contracts in continuous time as the unique viscosity solution of a Hamilton-Jacobi-Bellman equation with suitable boundary conditions. The case of contracts with penalties is straightforward, and in that…

Optimization and Control · Mathematics 2013-07-05 M. Basei , A. Cesaroni , T. Vargiolu

We revisit the optimal dividend problem of de Finetti by adding a variance term to the usual criterion of maximizing the expected discounted dividends paid until ruin, in a singular control framework. Investors do not like variability in…

Optimization and Control · Mathematics 2025-11-12 Jingyi Cao , Dongchen Li , Virginia R. Young , Bin Zou

We discuss several optimization procedures to solve finite element approximations of linear-quadratic Dirichlet optimal control problems governed by an elliptic partial differential equation posed on a 2D or 3D Lipschitz domain. The control…

Optimization and Control · Mathematics 2019-01-25 Mariano Mateos

A numerical method is proposed for a class of stochastic control problems including singular behavior. This method solves an infinite-dimensional linear program equivalent to the stochastic control problem using a finite element type…

Probability · Mathematics 2018-06-11 Martin G. Vieten , Richard H. Stockbridge

This paper studies the valuation and optimal strategy of convertible bonds as a Dynkin game by using the reflected backward stochastic differential equation method and the variational inequality method. We first reduce such a Dynkin game to…

Mathematical Finance · Quantitative Finance 2015-04-01 Huiwen Yan , Zhou Yang , Fahuai Yi , Gechun Liang

We study a multiscale stochastic optimal control problem subject to state constraints on the slow variable. To address this class of problems, we develop a rigorous theoretical framework based on singular perturbation analysis, tailored to…

Optimization and Control · Mathematics 2025-08-12 Anderson O. Calixto , Bernardo Freitas Paulo da Costa , Glauco Valle

Optimal Dirichlet boundary control for a fractional/normal evolution with a final observation is considered. The unique existence of the solution and the first-order optimality condition of the optimal control problem are derived. The…

Numerical Analysis · Mathematics 2020-07-20 Qin Zhou , Binjie Li

We study optimal control problems governed by abstract infinite dimensional stochastic differential equations using the dynamic programming approach. In the first part, we prove Lipschitz continuity, semiconcavity and semiconvexity of the…

Optimization and Control · Mathematics 2025-02-27 Filippo de Feo , Andrzej Święch , Lukas Wessels

In this paper, we study one kind of stochastic recursive optimal control problem with the obstacle constraints for the cost function where the cost function is described by the solution of one reflected backward stochastic differential…

Optimization and Control · Mathematics 2007-05-23 Zhen Wu , Zhiyong Yu

We study a stochastic control problem for continuous multidimensional martingales with fixed quadratic variation. In a radially symmetric environment, we are able to find an explicit solution to the control problem and find an optimal…

Probability · Mathematics 2025-06-10 Alexander M. G. Cox , Benjamin A. Robinson

Motivated by a new formulation of the classical dividend problem, we show that Peskir's maximality principle can be transferred to singular stochastic control problems with 2-dimensional degenerate dynamics and absorption along the diagonal…

Optimization and Control · Mathematics 2023-11-21 Tiziano De Angelis , Erik Ekström , Marcus Olofsson

We study a class of deterministic mean field games and related optimal control problems, with a finite time horizon and in which the state space is a network. An agent controls her velocity, and, when she occupies a vertex, she can either…

Optimization and Control · Mathematics 2025-11-25 Yves Achdou , Claudio Marchi , Nicoletta Tchou

We study a class of zero-sum games between a singular-controller and a stopper over finite-time horizon. The underlying process is a multi-dimensional (locally non-degenerate) controlled stochastic differential equation (SDE) evolving in an…

Optimization and Control · Mathematics 2023-10-31 Andrea Bovo , Tiziano De Angelis , Elena Issoglio

We study the optimal control of mean-field systems with heterogeneous and asymmetric interactions. This leads to considering a family of controlled Brownian diffusion processes with dynamics depending on the whole collection of marginal…

Probability · Mathematics 2024-07-29 Anna De Crescenzo , Marco Fuhrman , Idris Kharroubi , Huyên Pham

We consider a singular control problem with regime switching that arises in problems of optimal investment decisions of cash-constrained firms. The value function is proved to be the unique viscosity solution of the associated…

Computational Finance · Quantitative Finance 2016-10-07 Erwan Pierre , Stéphane Villeneuve , Xavier Warin

We consider the inverse multiphase Stefan problem with homogeneous Dirichlet boundary condition on a bounded Lipschitz domain, where the density of the heat source is unknown in addition to the temperature and the phase transition…

Analysis of PDEs · Mathematics 2020-05-12 Ugur G. Abdulla , Bruno Poggi

We consider a general class of stochastic optimal control problems, where the state process lives in a real separable Hilbert space and is driven by a cylindrical Brownian motion and a Poisson random measure; no special structure is imposed…

Probability · Mathematics 2018-10-04 Elena Bandini , Fulvia Confortola , Andrea Cosso

We prove two duality descriptions of the value function for a generic stochastic optimal problem. These descriptions also hold when the diffusion is controlled, a case left open by the literature so far.

Optimization and Control · Mathematics 2026-02-23 Peter Bank , Filippo de Feo

We revisit the Dynkin game problem in a general framework, improve classical results and relax some assumptions. The criterion is expressed in terms of families of random variables indexed by stopping times. We construct two nonnegative…

Probability · Mathematics 2013-08-15 Magdalena Kobylanski , Marie-Claire Quenez , Marc Roger de Campagnolle

We study a class of singular stochastic control problems for a one-dimensional diffusion $X$ in which the performance criterion to be optimised depends explicitly on the running infimum $I$ (or supremum $S$) of the controlled process. We…

Optimization and Control · Mathematics 2025-01-30 Giorgio Ferrari , Neofytos Rodosthenous