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This paper investigates a time-inconsistent portfolio selection problem in the incomplete mar ket model, integrating expected utility maximization with risk control. The objective functional balances the expected utility and variance on log…

Portfolio Management · Quantitative Finance 2025-12-02 Yue Cao , Zongxia Liang , Sheng Wang , Xiang Yu

The paper [12] examines a concept of equilibrium policies instead of optimal controls in stochastic optimization to analyze a mean-variance portfolio selection problem. We follow the same approach in order to investigate the Merton…

Optimization and Control · Mathematics 2020-04-23 I. Alia , F. Chighoub , N. Khelfallah , J. Vives

We study the Merton portfolio management problem within a complete market, non constant time discount rate and general utility framework. The non constant discount rate introduces time inconsistency which can be solved by introducing sub…

Portfolio Management · Quantitative Finance 2026-02-23 Oumar Mbodji

In this paper we study a class of time-inconsistent terminal Markovian control problems in discrete time subject to model uncertainty. We combine the concept of the sub-game perfect strategies with the adaptive robust stochastic to tackle…

Optimization and Control · Mathematics 2020-09-10 Tomasz R. Bielecki , Tao Chen , Igor Cialenco

This paper considers a class of stochastic control problems with implicitly defined objective functions, which are the sources of time-inconsistency. We study the closed-loop equilibrium solutions in a general controlled diffusion…

Optimization and Control · Mathematics 2023-12-29 Zongxia Liang , Jianming Xia , Keyu Zhang

This paper considers the portfolio management problem of optimal investment, consumption and life insurance. We are concerned with time inconsistency of optimal strategies. Natural assumptions, like different discount rates for consumption…

Optimization and Control · Mathematics 2011-07-25 Ivar Ekeland , Oumar Mbodji , Traian A. Pirvu

In this paper, we formulate a general time-inconsistent stochastic linear--quadratic (LQ) control problem. The time-inconsistency arises from the presence of a quadratic term of the expected state as well as a state-dependent term in the…

Optimization and Control · Mathematics 2011-11-04 Ying Hu , Hanqing Jin , Xun Yu Zhou

We investigate time-inconsistent portfolio problems under a broader class of monotone mean-variance (MMV) preferences. Since the optimal strategies for MMV and mean-variance (MV) preferences coincide, the MMV optimal strategies at different…

Optimization and Control · Mathematics 2026-04-21 Yike Wang , Yusha Chen , Jingzhen Liu

This paper addresses the portfolio selection problem for nonlinear law-dependent preferences in continuous time, which inherently exhibit time inconsistency. Employing the method of stochastic maximum principle, we establish verification…

Mathematical Finance · Quantitative Finance 2023-11-15 Zongxia Liang , Jianming Xia , Fengyi Yuan

A general time-inconsistent optimal control problem is considered for stochastic differential equations with deterministic coefficients. Under suitable conditions, a Hamilton-Jacobi-Bellman type equation is derived for the equilibrium value…

Optimization and Control · Mathematics 2012-04-04 Jiongmin Yong

This is a companion paper of [Mixed equilibrium solution of time-inconsistent stochastic LQ problem, arXiv:1802.03032], where general theory has been established to characterize the open-loop equilibrium control, feedback equilibrium…

Optimization and Control · Mathematics 2018-03-26 Yuan-Hua Ni , Xun Li , Ji-Feng Zhang , Miroslav Krstic

This paper studies an optimal investing problem for a retiree facing longevity risk and living standard risk. We formulate the investing problem as a portfolio choice problem under a time-varying risk capacity constraint. We derive the…

Portfolio Management · Quantitative Finance 2022-02-16 Weidong Tian , Zimu Zhu

In this paper, we propose a new class of optimization problems, which maximize the terminal wealth and accumulated consumption utility subject to a mean variance criterion controlling the final risk of the portfolio. The multiple-objective…

Mathematical Finance · Quantitative Finance 2020-11-30 Ben-Zhang Yang , Xin-Jiang He , Song-Ping Zhu

We investigate discrete-time mean-variance portfolio selection problems viewed as a Markov decision process. We transform the problems into a new model with deterministic transition function for which the Bellman optimality equation holds.…

Optimization and Control · Mathematics 2025-09-23 Nicole Bäuerle , Anna Jaśkiewicz

In this paper we study a time-inconsistent portfolio optimization problem for competitive agents with CARA utilities and non-exponential discounting. The utility of each agent depends on her own wealth and consumption as well as the…

Mathematical Finance · Quantitative Finance 2024-04-30 Zongxia Liang , Keyu Zhang

In this paper we consider an interval portfolio selection problem with uncertain returns and introduce an inclusive concept of satisfaction index for interval inequality relation. Based on the satisfaction index, we propose an approach to…

Optimization and Control · Mathematics 2012-07-10 Yunchol Jong

This paper considers time-inconsistent problems when control and stopping strategies are required to be made simultaneously (called stopping control problems by us). We first formulate the timeinconsistent stopping control problems under…

Optimization and Control · Mathematics 2023-06-21 Zongxia Liang , Fengyi Yuan

A time-inconsistent optimal control problem is formulated and studied for a controlled linear ordinary differential equation with quadratic cost functional. A notion of equilibrium control is introduced, which can be regarded as a…

Optimization and Control · Mathematics 2012-04-10 Jiongmin Yong

In this paper, we study a class of stochastic time-inconsistent linear-quadratic (LQ) control problems with control input constraints. These problems are investigated within the more general framework associated with random coefficients.…

Optimization and Control · Mathematics 2017-03-29 Ying Hu , Jianhui Huang , Xun Li

In intertemporal settings, the multiattribute utility theory of Kihlstrom and Mirman suggests the application of a concave transform of the lifetime utility index. This construction, while allowing time and risk attitudes to be separated,…

Mathematical Finance · Quantitative Finance 2024-10-07 Luca De Gennaro Aquino , Sascha Desmettre , Yevhen Havrylenko , Mogens Steffensen
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