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This paper is concerned with the axiomatic foundation and explicit construction of a general class of optimality criteria that can be used for investment problems with multiple time horizons, or when the time horizon is not known in…

Portfolio Management · Quantitative Finance 2014-02-03 Sergey Nadtochiy , Michael Tehranchi

In this article, we prove the existence of optimal risk-sensitive control with state constraints. We use near monotone assumption on the running cost to prove the existence of optimal risk-sensitive control.

Optimization and Control · Mathematics 2017-01-06 Sunil Kumar Gauttam , K. Suresh Kumar , Chandan Pal

We develop the dynamic programming approach for a family of infinite horizon boundary control problems with linear state equation and convex cost. We prove that the value function of the problem is the unique regular solution of the…

Optimization and Control · Mathematics 2008-06-27 Silvia Faggian , Fausto Gozzi

In this paper, we study optimal liquidation problems in a randomly-terminated horizon. We consider the liquidation of a large single-asset portfolio with the aim of minimizing a combination of volatility risk and transaction costs arising…

Trading and Market Microstructure · Quantitative Finance 2017-09-19 Qing-Qing Yang , Wai-Ki Ching , Jia-Wen Gu , Tak Kwong Wong

We study an infinite horizon optimal stopping problem which arises naturally in the optimal timing of a firm/project sale or in the valuation of natural resources: the functional to be maximised is a sum of a discounted running reward and a…

Optimization and Control · Mathematics 2016-12-08 Jan Palczewski , Lukasz Stettner

A learning technique for finite horizon optimal control problems and its approximation based on polynomials is analyzed. It allows to circumvent, in part, the curse dimensionality which is involved when the feedback law is constructed by…

Optimization and Control · Mathematics 2023-02-21 Karl Kunisch , Donato Vásquez-Varas

Unbounded stochastic control problems may lead to Hamilton-Jacobi-Bellman equations whose Hamiltonians are not always defined, especially when the diffusion term is unbounded with respect to the control. We obtain existence and uniqueness…

Analysis of PDEs · Mathematics 2008-10-09 Francesca Da Lio , Olivier Ley

The paper is a full version of the short presentation in \cite{amv17}. Ergodic control for one-dimensional controlled diffusion is tackled; both drift and diffusion coefficients may depend on a strategy which is assumed markovian. Ergodic…

Probability · Mathematics 2020-09-01 Svetlana Anulova , Hilmar Mai , Alexander Veretennikov

We treat infinite horizon optimal control problems by solving the associated stationary Hamilton-Jacobi-Bellman (HJB) equation numerically to compute the value function and an optimal feedback law. The dynamical systems under consideration…

Optimization and Control · Mathematics 2021-05-19 Mathias Oster , Leon Sallandt , Reinhold Schneider

This paper establishes the existence and uniqueness of mild solutions to stationary Hamilton-Jacobi-Bellman (HJB) equations associated with infinite-horizon stochastic optimal control problems in separable Hilbert spaces. Our framework…

Optimization and Control · Mathematics 2026-05-08 Gabriele Bolli , Fabian Fuchs

We prove a maximum principle for the problem of optimal control for a fractional diffusion with infinite horizon. Further, we show existence of fractional backward stochastic differential equations on infinite horizon. We illustrate our…

Optimization and Control · Mathematics 2012-06-29 Sven Haadem

In this article we consider the ergodic risk-sensitive control problem for a large class of multidimensional controlled diffusions on the whole space. We study the minimization and maximization problems under either a blanket stability…

Optimization and Control · Mathematics 2021-01-01 Ari Arapostathis , Anup Biswas , Somnath Pradhan

This paper is about operator-theoretic methods for solving nonlinear stochastic optimal control problems to global optimality. These methods leverage on the convex duality between optimally controlled diffusion processes and…

Optimization and Control · Mathematics 2023-05-30 Boris Houska

We study the relative value iteration for the ergodic control problem under a near-monotone running cost structure for a nondegenerate diffusion controlled through its drift. This algorithm takes the form of a quasilinear parabolic Cauchy…

Optimization and Control · Mathematics 2019-03-20 Ari Arapostathis , Vivek S. Borkar , K. Suresh Kumar

We consider a class of exit time stochastic control problems for diffusion processes with discounted criterion, where the controller can utilize a given amount of resource, called "fuel". In contrast to the vast majority of existing…

Optimization and Control · Mathematics 2015-01-30 Dmitry B. Rokhlin , Georgii Mironenko

In this article, we study the ergodic risk-sensitive control problem for controlled regime-switching diffusions. Under a blanket stability hypothesis, we solve the associated nonlinear eigenvalue problem for weakly coupled systems and…

Optimization and Control · Mathematics 2022-07-18 Anup Biswas , Somnath Pradhan

We consider Hamiltonians associated to optimal control problems for affine systems on the torus. They are not coercive and are possibly unbounded from below in the direction of the drift of the system. The main assumption is the strong…

Optimization and Control · Mathematics 2024-01-18 Martino Bardi

We study a finite horizon optimal contracting problem of a risk-neutral principal and a risk-averse agent who receives a stochastic income stream when the agent is unable to make commitments. The problem involves an infinite number of…

Theoretical Economics · Economics 2019-01-14 Junkee Jeon , Hyeng Keun Koo , Kyunghyun Park

This paper proposes an algorithmic technique for a class of optimal control problems where it is easy to compute a pointwise minimizer of the Hamiltonian associated with every applied control. The algorithm operates in the space of relaxed…

Optimization and Control · Mathematics 2016-03-10 M. T. Hale , Y. Wardi , H. Jaleel , M. Egerstedt

We study a finite horizon optimal control problem for the continuity equation under a weighted integral state constraint on the mass outside a fixed set. The model is cast in a Hilbert framework for densities. On a suitable invariant…

Optimization and Control · Mathematics 2026-04-03 Fabio Bagagiolo , Ivan Romanò