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We use martingale and stochastic analysis techniques to study a continuous-time optimal stopping problem, in which the decision maker uses a dynamic convex risk measure to evaluate future rewards. We also find a saddle point for an…

Probability · Mathematics 2009-11-23 Erhan Bayraktar , Ioannis Karatzas , Song Yao

In this paper, we study one kind of stochastic recursive optimal control problem with the obstacle constraints for the cost function where the cost function is described by the solution of one reflected backward stochastic differential…

Optimization and Control · Mathematics 2007-05-23 Zhen Wu , Zhiyong Yu

A new method for stochastic control based on neural networks and using randomisation of discrete random variables is proposed and applied to optimal stopping time problems. The method models directly the policy and does not need the…

Computational Finance · Quantitative Finance 2021-01-11 Thomas Deschatre , Joseph Mikael

We consider an optimal switching problem where the terminal reward depends on the entire control trajectory. We show existence of an optimal control by applying a probabilistic technique based on the concept of Snell envelopes. We then…

Optimization and Control · Mathematics 2019-11-12 Magnus Perninge

We study sequential cost-efficient design in a situation where each update of covariates involves a fixed time cost typically considerable compared to a single measurement time. The problem arises from parameter estimation in switching…

Methodology · Statistics 2024-03-05 Jeongmin Han , Juha Karvanen , Mikko Parviainen

In this paper, we study optimal switching problems under ambiguity. To characterize the optimal switching under ambiguity in the finite horizon, we use multidimensional reflected backward stochastic differential equations (multidimensional…

Mathematical Finance · Quantitative Finance 2016-08-23 Yuki Shigeta

We address a general optimal switching problem over finite horizon for a stochastic system described by a differential equation driven by Brownian motion. The main novelty is the fact that we allow for infinitely many modes (or regimes,…

Optimization and Control · Mathematics 2019-08-07 Marco Fuhrman , Marie-Amélie Morlais

We present a new, tractable method for solving and analyzing risk-aware control problems over finite and infinite, discounted time-horizons where the dynamics of the controlled process are described as a martingale problem. Supposing…

Optimization and Control · Mathematics 2020-06-23 Jukka Isohätälä , William B. Haskell

We study finite-horizon optimal switching with discrete intervention dates on a general filtration, allowing continuous-time observations between decision dates, and develop a deep-learning-based dual framework with computable upper bounds.…

Optimization and Control · Mathematics 2026-04-10 Junyan Ye , Hoi Ying Wong

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

This paper considers an optimal impulse control problem of dynamical systems generated by a flow. The performance criteria are total costs over the infinite time horizon. Apart from the main performance to be minimized, there are multiple…

Optimization and Control · Mathematics 2020-10-27 Alexey Piunovskiy , Yi Zhang

How to compute (super) hedging costs in rather general fi- nancial market models with transaction costs in discrete-time ? Despite the huge literature on this topic, most of results are characterizations of the super-hedging prices while it…

Probability · Mathematics 2024-05-13 Emmanuel Lepinette , Duc Thinh Vu

We consider a broad class of dynamic programming (DP) problems that involve a partially linear structure and some positivity properties in their system equation and cost function. We address deterministic and stochastic problems, possibly…

Optimization and Control · Mathematics 2026-04-21 Yuchao Li , Dimitri Bertsekas

Hybrid optimal control problems are studied for a general class of hybrid systems where autonomous and controlled state jumps are allowed at the switching instants and in addition to terminal and running costs switching between discrete…

Optimization and Control · Mathematics 2017-02-22 Ali Pakniyat , Peter E. Caines

We analyze the infinite horizon minimax average cost Markov Control Model (MCM), for a class of controlled process conditional distributions, which belong to a ball, with respect to total variation distance metric, centered at a known…

Optimization and Control · Mathematics 2015-12-22 Ioannis Tzortzis , Charalambos D. Charalambous , Themistoklis Charalambous

A class of infinite horizon optimal control problems involving mixed quasi-norms of $L^p$-type cost functionals for the controls is discussed. These functionals enhance sparsity and switching properties of the optimal controls. The…

Optimization and Control · Mathematics 2020-11-17 Dante Kalise , Karl Kunisch , Zhiping Rao

We study discrete-time finite-horizon optimal control problems in probability spaces, whereby the state of the system is a probability measure. We show that, in many instances, the solution of dynamic programming in probability spaces…

Optimization and Control · Mathematics 2024-04-09 Antonio Terpin , Nicolas Lanzetti , Florian Dörfler

In this paper we consider an infinite horizon zero-sum differential game where the dynamics of each player and the running cost are also depending on the evolution of some discrete (switching) variables. In particular, such switching…

Optimization and Control · Mathematics 2020-03-05 Fabio Bagagiolo , Rosario Maggistro , Marta Zoppello

We use one-step conditional risk mappings to formulate a risk averse version of a total cost problem on a controlled Markov process in discrete time infinite horizon. The nonnegative one step costs are assumed to be lower semi-continuous…

Optimization and Control · Mathematics 2018-06-05 Kerem Ugurlu

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