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We introduce a spatial economic growth model where space is described as a network of interconnected geographic locations and we study a corresponding finite-dimensional optimal control problem on a graph with state constraints. Economic…

This paper studies a continuous-time optimal portfolio selection problem in the complete market for a behavioral investor whose preference is of the prospect type with probability distortion. The investor concerns about the terminal…

Portfolio Management · Quantitative Finance 2022-11-11 Jing Peng , Pengyu Wei , Zuo Quan Xu

We study the problem of optimal dividend payout from a surplus process governed by Brownian motion with drift under the additional constraint of ratcheting, i.e. the dividend rate can never decrease. We solve the resulting two-dimensional…

Probability · Mathematics 2020-12-22 Hansjoerg Albrecher , Pablo Azcue , Nora Muler

This paper deals with partially-observed optimal control problems for the state governed by stochastic differential equation with delay. We develop a stochastic maximum principle for this kind of optimal control problems using a variational…

Optimization and Control · Mathematics 2020-10-15 Shuaiqi Zhang , Xun Li , Jie Xiong

Policy gradient methods are widely used in reinforcement learning. Yet, the nonconvexity of policy optimization poses significant challenges in understanding the global convergence of policy gradient methods. For a class of finite-horizon…

Optimization and Control · Mathematics 2026-03-10 Xin Chen , Yifan Hu , Minda Zhao

In this paper, we address the joint optimization of fleet size and mix, along with vehicle routing, under uncertain customer demand. We propose a two-stage stochastic mixed-integer programming model, where first-stage decisions concern the…

Optimization and Control · Mathematics 2025-12-11 Paolo Beatrici , Sebastian Birolini , Francesca Maggioni , Paolo Malighetti

Navigation in complex and noisy environments is a key issue in diverse fields from biology to engineering. Despite extensive progress in numerical optimization methods for computing navigation policies, insights into how disorder reshapes…

Statistical Mechanics · Physics 2026-05-06 Kévin Bilaï Biloa , Olivier Pierre-Louis

Stochastic optimal control problems have a long tradition in applied probability, with the questions addressed being of high relevance in a multitude of fields. Even though theoretical solutions are well understood in many scenarios, their…

Statistics Theory · Mathematics 2024-05-28 Sören Christensen , Claudia Strauch , Lukas Trottner

In this paper, we consider a stochastic recursive optimal control problem under model uncertainty. In this framework, the cost function is described by solutions of a family of backward stochastic differential equations. With the help of…

Probability · Mathematics 2020-04-16 Mingshang Hu , Falei Wang

We derive the explicit solutions to singular stochastic control problems of the monotone follower type with (a) an expected discounted criterion, (b) an expected ergodic criterion and (c) a pathwise ergodic criterion. These problems have…

Optimization and Control · Mathematics 2025-02-05 Gechun Liang , Zhesheng Liu , Mihail Zervos

The basic problem of optimal transportation consists in minimizing the expected costs $\mathbb {E}[c(X_1,X_2)]$ by varying the joint distribution $(X_1,X_2)$ where the marginal distributions of the random variables $X_1$ and $X_2$ are…

Probability · Mathematics 2016-08-14 Mathias Beiglböck , Nicolas Juillet

The Kelly criterion provides a general framework for optimizing the growth rate of an investment portfolio over time by maximizing the expected logarithmic utility of wealth. However, the optimality condition of the Kelly criterion is…

Mathematical Finance · Quantitative Finance 2025-11-04 Fabrizio Lillo , Piero Mazzarisi , Ioanna-Yvonni Tsaknaki

Sample-based trajectory optimisers are a promising tool for the control of robotics with non-differentiable dynamics and cost functions. Contemporary approaches derive from a restricted subclass of stochastic optimal control where the…

Robotics · Computer Science 2021-10-07 Tom Lefebvre , Guillaume Crevecoeur

We study an optimal allocation problem for a system of independent Brownian agents whose states evolve under a limited shared control. At each time, a unit of resource can be divided and allocated across components to increase their drifts,…

Optimization and Control · Mathematics 2026-03-31 Gaoyue Guo , Wenpin Tang , Nizar Touzi

We consider the problem of robustly maximizing the growth rate of investor wealth in the presence of model uncertainty. Possible models are all those under which the assets' region $E$ and instantaneous covariation $c$ are known, and where…

Portfolio Management · Quantitative Finance 2018-01-22 Constantinos Kardaras , Scott Robertson

In this paper, we derive sufficient and necessary maximum principles for a stochastic optimal control problem where the system state is given by a controlled stochastic differential equation with default. We prove existence of a unique…

Optimization and Control · Mathematics 2021-05-26 Khalida Bachir Cherif , Nacira Agram , Kristina Dahl

We derive exact analytical expressions for flow configurations that optimize the instantaneous growth rate of energy in the linear Eady problem, along with the associated growth rates. These optimal perturbations are relevant linear…

Atmospheric and Oceanic Physics · Physics 2019-02-18 William Barham , Ian Grooms

We propose and analyze a new class of controlled multi-type branching processes with a per-step linear resource constraint, motivated by potential applications in viral marketing and cancer treatment. We show that the optimal exponential…

Optimization and Control · Mathematics 2013-01-09 Shie Mannor , Kuang Xu

Functional lifting methods provide a tool for approximating solutions of difficult non-convex problems by embedding them into a larger space. In this work, we investigate a mathematically rigorous formulation based on embedding into the…

Optimization and Control · Mathematics 2020-07-07 Thomas Vogt , Roland Haase , Danielle Bednarski , Jan Lellmann

We consider the problem of minimizing the entropy of a law with respect to the law of a reference branching Brownian motion under density constraints at an initial and final time. We call this problem the branching Schr\"odinger problem by…

Probability · Mathematics 2021-12-14 Aymeric Baradat , Hugo Lavenant
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