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In this paper, we propose a general theory of ambiguity-averse MDPs, which treats the uncertain transition probabilities as random variables and evaluates a policy via a risk measure applied to its random return. This ambiguity-averse MDP…

Computer Science and Game Theory · Computer Science 2026-02-04 Axel Benyamine , Julien Grand-Clément , Marek Petrik , Michael I. Jordan , Alain Durmus

In this work, we design quantum algorithms that are more efficient than classical algorithms to solve time-dependent and finite-horizon Markov Decision Processes (MDPs) in two distinct settings: (1) In the exact dynamics setting, where the…

Quantum Physics · Physics 2025-08-11 Bin Luo , Yuwen Huang , Jonathan Allcock , Xiaojun Lin , Shengyu Zhang , John C. S. Lui

This paper investigates the optimization problem of an infinite stage discrete time Markov decision process (MDP) with a long-run average metric considering both mean and variance of rewards together. Such performance metric is important…

Optimization and Control · Mathematics 2020-08-11 Li Xia

The design of an automated vehicle controller can be generally formulated into an optimal control problem. This paper proposes a continuous-time finite-horizon approximate dynamicprogramming (ADP) method, which can synthesis off-line…

Systems and Control · Electrical Eng. & Systems 2020-07-07 Ziyu Lin , Jingliang Duan , Shengbo Eben Li , Haitong Ma , Yuming Yin

Risk-averse decision-making under uncertainty in partially observable domains is a central challenge in artificial intelligence and is essential for developing reliable autonomous agents. The formal framework for such problems is the…

Statistics Theory · Mathematics 2026-02-27 Yaacov Pariente , Vadim Indelman

Optimizing risk-averse objectives in discounted MDPs is challenging because most models do not admit direct dynamic programming equations and require complex history-dependent policies. In this paper, we show that the risk-averse {\em total…

Machine Learning · Computer Science 2025-07-15 Xihong Su , Julien Grand-Clément , Marek Petrik

This paper studies the optimization of Markov decision processes (MDPs) from a risk-seeking perspective, where the risk is measured by conditional value-at-risk (CVaR). The objective is to find a policy that maximizes the long-run CVaR of…

Optimization and Control · Mathematics 2023-12-05 Li Xia , Zhihui Yu , Peter W. Glynn

We introduce the notion of quantum Markov decision process (qMDP) as a semantic model of nondeterministic and concurrent quantum programs. It is shown by examples that qMDPs can be used in analysis of quantum algorithms and protocols. We…

Quantum Physics · Physics 2014-07-10 Shenggang Ying , Mingsheng Ying

This paper studies optimization of Conditional Value-at-Risk (CVaR) for Markov Decision Processes (MDPs) with finite state and action sets. It introduces the Dynamically augmented CVaR (DCVaR) risk measure and provides an algorithm for its…

Optimization and Control · Mathematics 2026-03-12 Eugene A. Feinberg , Rui Ding

In this paper, we focus on a data-driven risk-averse multistage stochastic programming (RMSP) model considering distributional robustness. We optimize the RMSP over the worst-case distribution within an ambiguity set of probability…

Optimization and Control · Mathematics 2017-08-29 Jianqiu Huang , Kezhuo Zhou , Yongpei Guan

Sharpe ratio (also known as reward-to-variability ratio) is a widely-used metric in finance, which measures the additional return at the cost of per unit of increased risk (standard deviation of return). However, the optimization of Sharpe…

Artificial Intelligence · Computer Science 2025-09-03 Shuai Ma , Guangwu Liu , Li Xia

Approximate dynamic programming (ADP) faces challenges in dealing with constraints in control problems. Model predictive control (MPC) is, in comparison, well-known for its accommodation of constraints and stability guarantees, although its…

Systems and Control · Electrical Eng. & Systems 2023-04-10 Kanghui He , Shengling Shi , Ton van den Boom , Bart De Schutter

The aim of this paper is to investigate risk-averse and distributionally robust modeling of Stochastic Optimal Control (SOC) and Markov Decision Process (MDP). We discuss construction of conditional nested risk functionals, a particular…

Optimization and Control · Mathematics 2025-05-23 Alexander Shapiro , Yan Li

In many sequential decision-making problems we may want to manage risk by minimizing some measure of variability in costs in addition to minimizing a standard criterion. Conditional value-at-risk (CVaR) is a relatively new risk measure that…

Artificial Intelligence · Computer Science 2014-07-14 Yinlam Chow , Mohammad Ghavamzadeh

In this paper, we consider risk-sensitive Markov Decision Processes (MDPs) with Borel state and action spaces and unbounded cost under both finite and infinite planning horizons. Our optimality criterion is based on the recursive…

Optimization and Control · Mathematics 2025-10-16 Nicole Bäuerle , Alexander Glauner

In this work, we address risk-averse Bayes-adaptive reinforcement learning. We pose the problem of optimising the conditional value at risk (CVaR) of the total return in Bayes-adaptive Markov decision processes (MDPs). We show that a policy…

Machine Learning · Computer Science 2021-10-27 Marc Rigter , Bruno Lacerda , Nick Hawes

This paper develops risk-averse models to support system operators in planning and operating the electricity grid under uncertainty from renewable power generation. We incorporate financial risk hedging using conditional value at risk…

Optimization and Control · Mathematics 2026-01-06 Arash Khojaste , Jonathan Pearce , Daniela Pucci de Farias , Geoffrey Pritchard , Golbon Zakeri

This study is aimed at answering the famous question of how the approximation errors at each iteration of Approximate Dynamic Programming (ADP) affect the quality of the final results considering the fact that errors at each iteration…

Systems and Control · Computer Science 2015-05-18 Ali Heydari

For infinite-horizon average-cost criterion problems, there exist relatively few rigorous approximation and reinforcement learning results. In this paper, for Markov Decision Processes (MDPs) with standard Borel spaces, (i) we first provide…

Optimization and Control · Mathematics 2024-12-10 Ali Devran Kara , Serdar Yuksel

In this paper, the aim is to develop a quantum counterpart to classical Markov decision processes (MDPs). Firstly, we provide a very general formulation of quantum MDPs with state and action spaces in the quantum domain, quantum…

Quantum Physics · Physics 2024-09-19 Naci Saldi , Sina Sanjari , Serdar Yuksel