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In this paper we study the optimal dividend problem for a company whose surplus process evolves as a spectrally positive Levy process. This model including the dual model of the classical risk model and the dual model with diffusion as…

Portfolio Management · Quantitative Finance 2014-03-11 Chuancun Yin , Yuzhen Wen , Yongxia Zhao

This paper is concerned with a discounted optimal control problem of partially observed forward-backward stochastic systems with jumps on infinite horizon. The control domain is convex and a kind of infinite horizon observation equation is…

Optimization and Control · Mathematics 2022-01-04 Yueyang Zheng , Jingtao Shi

Linear programming (polynomial) techniques are used to obtain lower and upper bounds for the potential energy of spherical designs. This approach gives unified bounds that are valid for a large class of potential functions. Our lower bounds…

Metric Geometry · Mathematics 2015-09-28 P. G. Boyvalenkov , P. D. Dragnev , D. P. Hardin , E. B. Saff , M. M. Stoyanova

For any quantity of interest in a system governed by ordinary differential equations, it is natural to seek the largest (or smallest) long-time average among solution trajectories, as well as the extremal trajectories themselves. Upper…

Dynamical Systems · Mathematics 2019-04-16 Ian Tobasco , David Goluskin , Charles R. Doering

Many discrete-time optimal stopping problems are known to have more tractable limit forms based on a planar Poisson process. Using this tool we find a solution to the optimal stopping problem for i.i.d. sequence of $n$ discrete uniform…

Probability · Mathematics 2026-01-09 Alexander Gnedin

We consider the optimal regulation problem for nonlinear control-affine dynamical systems. Whereas the linear-quadratic regulator (LQR) considers optimal control of a linear system with quadratic cost function, we study polynomial systems…

Optimization and Control · Mathematics 2024-10-30 Nicholas A. Corbin , Boris Kramer

A new approach to solving two-point boundary value problems for a wave equation is developed. This new approach exploits the principle of stationary action to reformulate and solve such problems in the framework of optimal control. In…

Optimization and Control · Mathematics 2017-11-13 Peter M. Dower , William M. McEneaney

The maximality principle has been a valuable tool in identifying the free-boundary functions that are associated with the solutions to several optimal stopping problems involving one-dimensional time-homogeneous diffusions and their running…

Probability · Mathematics 2025-05-27 Neofytos Rodosthenous , Mihail Zervos

We consider the problem of optimal multiple switching in finite horizon, when the state of the system, including the switching costs, is a general adapted stochastic process. The problem is formulated as an extended impulse control problem…

Probability · Mathematics 2007-07-19 Boualem Djehiche , Said Hamadene , Alexandre Popier

The joint distribution of the maximum loss and the maximum gain is obtained for a spectrally negative Levy process until the passage time of a given level. Their marginal distributions up to an independent exponential time are also…

Probability · Mathematics 2019-01-30 Ceren Vardar Acar , Mine Caglar

We consider an optimal liquidation problem with infinite horizon in the Almgren-Chriss framework, where the unaffected asset price follows a Levy process. The temporary price impact is described by a general function which satisfies some…

Trading and Market Microstructure · Quantitative Finance 2020-09-16 Arne Lokka , Junwei Xu

We consider a discounted infinite horizon optimal stopping problem. If the underlying distribution is known a priori, the solution of this problem is obtained via dynamic programming (DP) and is given by a well known threshold rule. When…

Machine Learning · Computer Science 2021-02-23 Daniel Russo , Assaf Zeevi , Tianyi Zhang

We extend the Longstaff-Schwartz algorithm for approximately solving optimal stopping problems on high-dimensional state spaces. We reformulate the optimal stopping problem for Markov processes in discrete time as a generalized statistical…

Probability · Mathematics 2007-05-23 Daniel Egloff

A method based on deep artificial neural networks and empirical risk minimization is developed to calculate the boundary separating the stopping and continuation regions in optimal stopping. The algorithm parameterizes the stopping boundary…

Pricing of Securities · Quantitative Finance 2023-05-26 A. Max Reppen , H. Mete Soner , Valentin Tissot-Daguette

We derive a criterium for the almost sure finiteness of perpetual integrals of \LL processes for a class of real functions including all continuous functions and for general one-dimensional L\'evy processes that drifts to plus infinity.…

Probability · Mathematics 2019-10-14 Martin Kolb , Mladen Savov

We study the optimal stopping time problem $v(S)={\rm ess}\sup_{\theta \geq S} E[\phi(\theta)|\mathcal {F}_S]$, for any stopping time $S$, where the reward is given by a family $(\phi(\theta),\theta\in\mathcal{T}_0)$ \emph{of non negative…

Probability · Mathematics 2013-03-01 Magdalena Kobylanski , Marie-Claire Quenez

The solution to the infinite horizon optimal control problem for linear distributed time-delay systems is presented. The proposal is based on the use of the Cauchy solution for distributed time-delay systems. In contrast with previous…

Optimization and Control · Mathematics 2022-01-19 Jorge Ortega , Omar Santos , Liliam Rodríguez , Sabine Mondié

We study the convergence rate of moment-sum-of-squares hierarchies of semidefinite programs for optimal control problems with polynomial data. It is known that these hierarchies generate polynomial under-approximations to the value function…

Optimization and Control · Mathematics 2016-09-12 Milan Korda , Didier Henrion , Colin N. Jones

A polynomial algorithm is obtained for the NP-complete linear ordering problem.

Computational Complexity · Computer Science 2007-05-23 Givi Bolotashvili

Decision processes with incomplete state feedback have been traditionally modeled as Partially Observable Markov Decision Processes. In this paper, we present an alternative formulation based on probabilistic regular languages. The proposed…

Optimization and Control · Mathematics 2009-08-07 Ishanu Chattopadhyay , Asok Ray