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We study optimal stopping problems related to the pricing of perpetual American options in an extension of the Black-Merton-Scholes model in which the dividend and volatility rates of the underlying risky asset depend on the running values…

Probability · Mathematics 2014-05-20 Pavel V. Gapeev , Neofytos Rodosthenous

We study a constrained stochastic control problem with jumps; the jump times of the controlled process are given by a Poisson process. The cost functional comprises quadratic components for an absolutely continuous control and the…

Optimization and Control · Mathematics 2013-04-29 Peter Kratz

We present a new deep primal-dual backward stochastic differential equation framework based on stopping time iteration to solve optimal stopping problems. A novel loss function is proposed to learn the conditional expectation, which…

Computational Finance · Quantitative Finance 2024-09-12 Jiefei Yang , Guanglian Li

In this paper, we study a stochastic recursive optimal control problem in which the value functional is defined by the solution of a backward stochastic differential equation (BSDE) under $\tilde{G}$-expectation. Under standard assumptions,…

Optimization and Control · Mathematics 2021-06-08 Mingshang Hu , Shaolin Ji , Xiaojuan Li

This paper is concerned with stochastic impulse control problems in which the running cost changes depending on the impulse control. Because of such a dependence, it brings several difficulties when the usual dynamic programming principle…

Optimization and Control · Mathematics 2025-11-11 Yuchen Cao , Jiongmin Yong

In this paper, we study an optimal stopping problem in the presence of model uncertainty and regime switching. The max-min formulation for robust control and the dynamic programming approach are adopted to establish a general theoretical…

Optimization and Control · Mathematics 2025-09-04 Siyu Lv , Zhen Wu , Jie Xiong , Xin Zhang

It is well known that stability is the most fundamental nature with regard to a control system, in view of this, the stabilization becomes an inevitable control problem. This article mainly discusses the optimal control and stabilization…

Optimization and Control · Mathematics 2018-03-21 Hongdan Li , Chunyan Han , Huanshui Zhang

We study an infinite horizon optimal stopping problem which arises naturally in the optimal timing of a firm/project sale or in the valuation of natural resources: the functional to be maximised is a sum of a discounted running reward and a…

Optimization and Control · Mathematics 2016-12-08 Jan Palczewski , Lukasz Stettner

This paper deals with existence and uniqueness, in viscosity sense, of a solution for a system of m variational partial differential inequalities with inter-connected obstacles. A particular case of this system is the deterministic version…

Optimization and Control · Mathematics 2012-11-22 Said Hamadène , Marie-Amélie Morlais

We consider optimal stopping problems for a Brownian motion and a geometric Brownian motion with a "disorder", assuming that the moment of a disorder is uniformly distributed on a finite interval. Optimal stopping rules are found as the…

Statistics Theory · Mathematics 2012-12-18 A. N. Shiryaev , M. V. Zhitlukhin

This paper analyzes a class of impulse control problems for multi-dimensional jump diffusions in the finite time horizon. Following the basic mathematical setup from Stroock and Varadhan \cite{StroockVaradhan06}, this paper first…

Optimization and Control · Mathematics 2013-04-23 Yann-Shin Aaron Chen , Xin Guo

We show a concise extension of the monotone stability approach to backward stochastic differential equations (BSDEs) that are jointly driven by a Brownian motion and a random measure for jumps, which could be of infinite activity with a…

Probability · Mathematics 2019-11-21 Dirk Becherer , Martin Büttner , Klebert Kentia

In this paper, we study a system of second order integro-partial differential equations with interconnected obstacles with non-local terms, related to an optimal switching problem with the jump-diffusion model. Getting rid of the…

Analysis of PDEs · Mathematics 2024-09-04 Said Hamadène , Mohamed Mnif , Sarah Neffati

This paper studies an optimal stochastic impulse control problem in a finite horizon with a decision lag, by which we mean that after an impulse is made, a fixed number units of time has to be elapsed before the next impulse is allowed to…

Optimization and Control · Mathematics 2021-02-09 Chang Li , Jiongmin Yong

In this paper, we study the optimal multiple stopping problem under Knightian uncertainty both under discrete-time case and continuous-time case. The Knightian uncertainty is modeled by a single real-valued function g, which is the…

Probability · Mathematics 2019-12-18 Hanwu Li

In this paper, we study the $m$-states optimal switching problem in finite horizon, when the switching cost functions are arbitrary and can be positive or negative. This has an economic incentive in terms of central evaluation in cases…

Optimization and Control · Mathematics 2016-05-06 Brahim El Asri , Imade Fakhouri

We consider the problem of optimal multi-modes switching in finite horizon, when the state of the system, including the switching cost functions are arbitrary ($g_{ij}(t,x)\geq 0$). We show existence of the optimal strategy, and give when…

Optimization and Control · Mathematics 2015-03-18 Brahim El Asri

Deterministic optimal impulse control problem with terminal state constraint is considered. Due to the appearance of the terminal state constraint, the value function might be discontinuous in general. The main contribution of this paper is…

Optimization and Control · Mathematics 2020-11-10 Yue Zhou , Xinwei Feng , Jiongmin Yong

We study multivalued stochastic differential equations (MSDEs) with maximal monotone operators driven by semimartingales with jumps. We discuss in detail some methods of approximation of solutions of MSDEs based on discretization of…

Probability · Mathematics 2016-04-26 Lucian Maticiuc , Aurel Rascanu , Leszek Slominski

We study a problem of optimal investment/consumption over an infinite horizon in a market consisting of a liquid and an illiquid asset. The liquid asset is observed and can be traded continuously, while the illiquid one can only be traded…

Portfolio Management · Quantitative Finance 2012-11-07 Salvatore Federico , Paul Gassiat