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In this paper, we propose a class of efficient, accurate, and general methods for solving state-estimation problems with equality and inequality constraints. The methods are based on recent developments in variable splitting and partially…

Optimization and Control · Mathematics 2020-12-02 Rui Gao , Filip Tronarp , Simo Särkkä

We consider a class of impulse control problems for general underlying strong Markov processes on the real line, which allows for an explicit solution. The optimal impulse times are shown to be of threshold type and the optimal threshold is…

Probability · Mathematics 2017-07-07 Sören Christensen , Paavo Salminen

Optimal stopping is the problem of determining when to stop a stochastic system in order to maximize reward, which is of practical importance in domains such as finance, operations management and healthcare. Existing methods for…

Optimization and Control · Mathematics 2022-03-28 Xinyi Guan , Velibor V. Mišić

We study the optimal stopping time problem $v(S)={\rm ess}\sup_{\theta \geq S} E[\phi(\theta)|\mathcal {F}_S]$, for any stopping time $S$, where the reward is given by a family $(\phi(\theta),\theta\in\mathcal{T}_0)$ \emph{of non negative…

Probability · Mathematics 2013-03-01 Magdalena Kobylanski , Marie-Claire Quenez

The objective of this work is to study continuous-time Markov decision processes on a general Borel state space with both impulsive and continuous controls for the infinite-time horizon discounted cost. The continuous-time controlled…

Optimization and Control · Mathematics 2019-08-17 François Dufour , Alexei Piunovskiy

We propose new jump-adapted weak approximation schemes for stochastic differential equations driven by pure-jump L\'evy processes. The idea is to replace the driving L\'evy process $Z$ with a finite intensity process which has the same…

Probability · Mathematics 2010-12-30 Peter Tankov

We consider solutions of L\'evy-driven stochastic differential equations of the form $\mathrm{d} X_t=\sigma(X_{t-})\mathrm{d} L_t$, $X_0=x$ where the function $\sigma$ is twice continuously differentiable and maximal of linear growth and…

Probability · Mathematics 2023-02-08 Jana Reker

We adapt ideas and concepts developed in optimal transport (and its martingale variant) to give a geometric description of optimal stopping times of Brownian motion subject to the constraint that the distribution of the stopping time is a…

Probability · Mathematics 2017-09-14 Mathias Beiglboeck , Manu Eder , Christiane Elgert , Uwe Schmock

In this paper we study the existence of a unique solution for linear stochastic differential equations driven by a L\'evy process, where the initial condition and the coefficients are random and not necessarily adapted to the underlying…

Probability · Mathematics 2012-07-09 Jorge A. León , David Márquez-Carreras , Josep Vives

Computing optimal conditional reachability probabilities in Markov decision processes (MDPs) is tractable by a reduction to reachability probabilities. Yet, this reduction yields cyclic, challenging MDPs that are often notoriously hard to…

Logic in Computer Science · Computer Science 2026-05-14 Milan Češka , Sebastian Junges , Luko van der Maas , Filip Macák , Tim Quatmann

In this paper we consider long-run risk sensitive average cost impulse control applied to a continuous-time Feller-Markov process. Using the probabilistic approach, we show how to get a solution to a suitable continuous-time Bellman…

Optimization and Control · Mathematics 2021-04-01 Damian Jelito , Marcin Pitera , Łukasz Stettner

In this note we propose a new approach towards solving numerically optimal stopping problems via reinforced regression based Monte Carlo algorithms. The main idea of the method is to reinforce standard linear regression algorithms in each…

Numerical Analysis · Mathematics 2019-07-02 Denis Belomestny , John Schoenmakers , Vladimir Spokoiny , Bakhyt Zharkynbay

We study the optimal investment stopping problem in both continuous and discrete case, where the investor needs to choose the optimal trading strategy and optimal stopping time concurrently to maximize the expected utility of terminal…

Mathematical Finance · Quantitative Finance 2020-05-01 Dingqian Sun

We study optimal control problems in infinite horizon when the dynamics belong to a specific class of piecewise deterministic Markov processes constrained to star-shaped networks (inspired by traffic models). We adapt the results in [H. M.…

Optimization and Control · Mathematics 2015-10-06 Dan Goreac , Magdalena Kobylanski , Miguel Martinez

We formulate an optimal switching problem when the underlying filtration is generated by a marked point process and a Brownian motion. Each mode is characterized by a different compensator for the point process, and thus by a different…

Probability · Mathematics 2017-11-01 Nahuel Foresta

We study a robust optimal stopping problem with respect to a set $\cP$ of mutually singular probabilities. This can be interpreted as a zero-sum controller-stopper game in which the stopper is trying to maximize its pay-off while an adverse…

Probability · Mathematics 2016-04-12 Erhan Bayraktar , Song Yao

An infinite system of point particles placed in $\mathds{R}^d$ is studied. The particles are of two types; they perform random walks in the course of which those of distinct types repel each other. The interaction of this kind induces an…

Probability · Mathematics 2022-07-18 Yuri Kozitsky , Michael Röckner

We discuss two independent methods of solution of a master equation whose biased jump transition rates account for long jumps of L\'{e}vy-stable type and nonetheless admit a Boltzmannian (thermal) equilibrium to arise in the large time…

Statistical Mechanics · Physics 2015-06-16 Mariusz Żaba , Piotr Garbaczewski , Vladimir Stephanovich

In this study, we address the central issue of statistical inference for Markov jump processes using discrete time observations. The primary problem at hand is to accurately estimate the infinitesimal generator of a Markov jump process, a…

Methodology · Statistics 2024-12-19 F. Baltazar-Larios , Luz Judith R. Esparza

We introduce a general algorithm for the computation of the scale functions of a spectrally negative L\'evy process $X$, based on a natural weak approximation of $X$ via upwards skip-free continuous-time Markov chains with stationary…

Probability · Mathematics 2015-04-21 Aleksandar Mijatović , Matija Vidmar , Saul Jacka