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A new jump diffusion regime-switching model is introduced, which allows for linking jumps in asset prices with regime changes. We prove the existence and uniqueness of the solution to the risk-sensitive asset management criterion…

Portfolio Management · Quantitative Finance 2016-01-21 Grzegorz Andruszkiewicz , Mark H. A. Davis , Sébastien Lleo

What is the fastest possible "diffusion"? A trivial answer would be "a process that converts a Dirac delta-function into a uniform distribution infinitely fast". Below, we consider a more reasonable formulation: a process that maximizes…

Statistical Mechanics · Physics 2025-10-10 Vasili Baranau

A solution to the optimal problem for determining vector fields which maximize (resp. minimize) the transition probabilities from one location to another for a class of reflecting diffusion processes is obtained in the present paper. The…

Probability · Mathematics 2023-04-27 Zhongmin Qian , Xingcheng Xu

Diffusion processes arise in many fields, and so simulating the path of a diffusion is an important problem. It is usually necessary to make some sort of approximation via model-discretization, but a recently introduced class of algorithms,…

Methodology · Statistics 2013-11-25 Paul A. Jenkins

We present a methodology for obtaining explicit solutions to infinite time horizon optimal stopping problems involving general, one-dimensional, It\^o diffusions, payoff functions that need not be smooth and state-dependent discounting.…

Computational Finance · Quantitative Finance 2012-10-10 Timothy C. Johnson

We study the Bayesian problems of detecting a change in the drift rate of an observable diffusion process with linear and exponential penalty costs for a detection delay. The optimal times of alarms are found as the first times at which the…

Statistics Theory · Mathematics 2011-11-08 Pavel V. Gapeev , Albert N. Shiryaev

This paper is devoted to the error analysis of a time-spectral algorithm for fractional diffusion problems of order $\alpha$ ($0 < \alpha < 1$). The solution regularity in the Sobolev space is revisited, and new regularity results in the…

Numerical Analysis · Mathematics 2021-06-08 Hao Luo , Xiaoping Xie

This paper is concerned with a discounted stochastic optimal control problem for regime switching diffusion in an infinite horizon. First, as a preliminary with particular interests in its own right, the global well-posedness of infinite…

Optimization and Control · Mathematics 2026-02-06 Kai Ding , Xun Li , Siyu Lv , Xin Zhang

This paper investigates the problem of variable-length lossy source coding allowing a positive excess distortion probability and an overflow probability of codeword lengths. Novel one-shot achievability and converse bounds of the optimal…

Information Theory · Computer Science 2018-12-17 Shota Saito , Hideki Yagi , Toshiyasu Matsushima

We consider the problem of optimal stopping for a one-dimensional diffusion process. Two classes of admissible stopping times are considered. The first class consists of all nonanticipating stopping times that take values in [0,\infty],…

Probability · Mathematics 2007-05-23 Paul Dupuis , Hui Wang

In this paper we consider the diffusive search for a bounded target $\Omega \in \R^d$ with its boundary $\partial \Omega$ totally absorbing. We assume that the target is surrounded by a semipermeable interface given by the closed surface…

Statistical Mechanics · Physics 2023-03-08 Paul C Bressloff

We provide, in a general setting, explicit solutions for optimal stopping problems that involve diffusion process and its running maximum. Our approach is to use the excursion theory for Levy processes. Since general diffusions are, in…

Optimization and Control · Mathematics 2016-09-13 Masahiko Egami , Tadao Oryu

The main result in this paper is a variational formula for the exit rate from a bounded domain for a diffusion process in terms of the stationary law of the diffusion constrained to remain in this domain forever. Related results on the…

Probability · Mathematics 2020-03-17 Ari Arapostathis , Vivek S. Borkar

This article explores an optimal stopping problem for branching diffusion processes. It consists in looking for optimal stopping lines, a type of stopping time that maintains the branching structure of the processes under analysis. By using…

Probability · Mathematics 2024-12-31 Idris Kharroubi , Antonio Ocello

We aim at estimating the invariant density associated to a stochastic differential equation with jumps in low dimension, which is for $d=1$ and $d=2$. We consider a class of jump diffusion processes whose invariant density belongs to some…

Statistics Theory · Mathematics 2022-01-19 Chiara Amorino , Eulalia Nualart

In this article, we consider a species whose population density solves the steady diffusive logistic equation in a heterogeneous environment modeled with the help of a spatially non constant coefficient standing for a resources…

Analysis of PDEs · Mathematics 2019-07-30 Idriss Mazari , Grégoire Nadin , Yannick Privat

Consider a species whose population density solves the steady diffusive logistic equation in a heterogeneous environment modeled with the help of a spatially non constant coefficient standing for a resources distribution in a given box. We…

Analysis of PDEs · Mathematics 2018-07-25 Idriss Mazari , Grégoire Nadin , Yannick Privat

A finite horizon optimal stopping problem for an infinite dimensional diffusion $X$ is analyzed by means of variational techniques. The diffusion is driven by a SDE on a Hilbert space $\mathcal{H}$ with a non-linear diffusion coefficient…

Optimization and Control · Mathematics 2015-02-03 M. B. Chiarolla , T. De Angelis

We model the joint distribution of choice probabilities and decision times in binary choice tasks as the solution to a problem of optimal sequential sampling, where the agent is uncertain of the utility of each action and pays a constant…

Neurons and Cognition · Quantitative Biology 2015-05-14 Drew Fudenberg , Philipp Strack , Tomasz Strzalecki

In this paper, we solve explicitly the optimal stopping problem with random discounting and an additive functional as cost of observations for a regular linear diffusion. We also extend the results to the class of one-sided regular Feller…

Probability · Mathematics 2012-11-06 Mamadou Cissé , Pierre Patie , Etienne Tanré