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We study a single risky financial asset model subject to price impact and transaction cost over an finite time horizon. An investor needs to execute a long position in the asset affecting the price of the asset and possibly incurring in…

Trading and Market Microstructure · Quantitative Finance 2015-03-19 Mauricio Junca

We introduce and study online conversion with switching costs, a family of online problems that capture emerging problems at the intersection of energy and sustainability. In this problem, an online player attempts to purchase…

Data Structures and Algorithms · Computer Science 2024-11-11 Adam Lechowicz , Nicolas Christianson , Bo Sun , Noman Bashir , Mohammad Hajiesmaili , Adam Wierman , Prashant Shenoy

Recent advances in continuous-time optimal stopping have been driven by entropy-regularized formulations of randomized stopping problems, with most existing approaches relying on partial differential equation methods. In this paper, we…

Computational Finance · Quantitative Finance 2026-02-23 Daniel Chee , Noufel Frikha , Libo Li

This article is concerned with stability and performance of controlled stochastic processes under receding horizon policies. We carry out a systematic study of methods to guarantee stability under receding horizon policies via appropriate…

Systems and Control · Computer Science 2017-11-27 Debasish Chatterjee , John Lygeros

A finite horizon optimal tracking problem is considered for linear dynamical systems subject to parametric uncertainties in the state-space matrices and exogenous disturbances. A suboptimal solution is proposed using a model predictive…

Optimization and Control · Mathematics 2022-02-08 Anilkumar Parsi , Andrea Iannelli , Roy S. Smith

We consider robust pricing and hedging for options written on multiple assets given market option prices for the individual assets. The resulting problem is called the multi-marginal martingale optimal transport problem. We propose two…

Probability · Mathematics 2020-10-08 Stephan Eckstein , Gaoyue Guo , Tongseok Lim , Jan Obloj

In this paper, we explore an optimal timing strategy for the trading of price spreads exhibiting mean-reverting characteristics. A sequential optimal stopping framework is formulated to analyze the optimal timings for both entering and…

Computational Finance · Quantitative Finance 2024-03-06 Boming Ning , Prakash Chakraborty , Kiseop Lee

Autonomous control systems use various sensors to decrease the amount of uncertainty under which they operate. While providing partial observation of the current state of the system, sensors require resources such as energy, time and…

Logic in Computer Science · Computer Science 2016-02-29 Eva Tesarova , Maria Svorenova , Jiri Barnat , Ivana Cerna

We consider the problem of optimally utilizing $N$ resources, each in an unknown binary state. The state of each resource can be inferred from state-dependent noisy measurements. Depending on its state, utilizing a resource results in…

Systems and Control · Computer Science 2017-05-18 Lorenzo Ferrari , Qing Zhao , Anna Scaglione

We present novel techniques for neuro-symbolic concurrent stochastic games, a recently proposed modelling formalism to represent a set of probabilistic agents operating in a continuous-space environment using a combination of neural network…

Computer Science and Game Theory · Computer Science 2022-06-22 Rui Yan , Gabriel Santos , Xiaoming Duan , David Parker , Marta Kwiatkowska

This paper investigates the necessary optimality conditions for uniformly overtaking optimal control on infinite horizon in the free end case. %with free right endpoint. In the papers of S.M.Aseev, A.V.Kryazhimskii, V.M.Veliov, K.O.Besov…

Optimization and Control · Mathematics 2012-07-24 Dmitry Khlopin

In this paper we discuss the optimal liquidation over a finite time horizon until the exit time. The drift and diffusion terms of the asset price are general functions depending on all variables including control and market regime. There is…

Portfolio Management · Quantitative Finance 2014-10-02 Baojun Bian , Nan Wu , Harry Zheng

This paper deals with the unconstrained and constrained cases for continuous-time Markov decision processes under the finite-horizon expected total cost criterion. The state space is denumerable and the transition and cost rates are allowed…

Optimization and Control · Mathematics 2014-08-26 Qingda Wei , Xian Chen

A linear control system with quadratic cost functional over infinite time horizon is considered without assuming controllability/stabilizability condition and the global integrability condition for the nonhomogeneous term of the state…

Optimization and Control · Mathematics 2020-08-25 Jianping Huang , Jiongmin Yong , Hua-Cheng Zhou

We study optimal stopping of Feller-Markov processes to maximise an undiscounted functional consisting of running and terminal rewards. In a finite-time horizon setting, we extend classical results to unbounded rewards. In infinite horizon,…

Optimization and Control · Mathematics 2016-07-21 Jan Palczewski , Lukasz Stettner

Optimal sensor scheduling with applications to networked estimation and control systems is considered. We model sensor measurement and transmission instances using jumps between states of a continuous-time Markov chain. We introduce a cost…

Optimization and Control · Mathematics 2014-05-07 Farhad Farokhi , Karl H. Johansson

In this paper, we consider discrete-time infinite horizon problems of optimal control to a terminal set of states. These are the problems that are often taken as the starting point for adaptive dynamic programming. Under very general…

Systems and Control · Computer Science 2015-10-05 Dimitri P. Bertsekas

We solve two stochastic control problems in which a player tries to minimize or maximize the exit time from an interval of a Brownian particle, by controlling its drift. The player can change from one drift to another but is subject to a…

Probability · Mathematics 2014-08-19 Robert C. Dalang , Laura Vinckenbosch

The design of the performance index, also referred to as cost or reward shaping, is central to both optimal control and reinforcement learning, as it directly determines the behaviors, trade-offs, and objectives that the resulting control…

Systems and Control · Electrical Eng. & Systems 2025-10-14 Ayush Rai , Shaoshuai Mou , Brian D. O. Anderson

Let $G$ be a semimartingale, and $S$ its Snell envelope. Under the assumption that $G\in\mathcal{H}^1$, we show that the finite-variation part of $S$ is absolutely continuous with respect to the decreasing part of the finite-variation part…

Probability · Mathematics 2018-12-04 Saul D. Jacka , Dominykas Norgilas