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We study a stochastic optimal control problem with the state constrained to a smooth, compact domain. The control influences both the drift and a possibly degenerate, control-dependent dispersion matrix, leading to a fully nonlinear,…

Optimization and Control · Mathematics 2025-08-08 Anderson O. Calixto , Bernardo Freitas Paulo da Costa , Glauco Valle

In this paper, we extend the jump-diffusion model proposed by Davis and Lleo to include jumps in asset prices as well as valuation factors. The criterion, following earlier work by Bielecki, Pliska, Nagai and others, is risk-sensitive…

Portfolio Management · Quantitative Finance 2010-03-15 Mark Davis , Sebastien Lleo

This paper presents a new method for synthesizing stochastic control Lyapunov functions for a class of nonlinear stochastic control systems. The technique relies on a transformation of the classical nonlinear Hamilton-Jacobi-Bellman partial…

Optimization and Control · Mathematics 2017-09-07 Yoke Peng Leong , Matanya B. Horowitz , Joel W. Burdick

This paper presents a novel approach to numerically solve stochastic differential games for nonlinear systems. The proposed approach relies on the nonlinear Feynman-Kac theorem that establishes a connection between parabolic deterministic…

Optimization and Control · Mathematics 2019-06-13 Ziyi Wang , Keuntaek Lee , Marcus A. Pereira , Ioannis Exarchos , Evangelos A. Theodorou

Devising optimal interventions for diffusive systems often requires the solution of the Hamilton-Jacobi-Bellman (HJB) equation, a nonlinear backward partial differential equation (PDE), that is, in general, nontrivial to solve. Existing…

Statistical Mechanics · Physics 2022-10-18 Dimitra Maoutsa , Manfred Opper

This paper introduces a new type of second order stochastic backward Hamilton-Jacobi-Bellman (HJB) equations for optimal stochastic control problems with a currently observable but non-predicable parameter process, in addition to the…

Optimization and Control · Mathematics 2020-03-04 Nikolai Dokuchaev

In this manuscript we consider a class optimal control problem for stochastic differential delay equations. First, we rewrite the problem in a suitable infinite-dimensional Hilbert space. Then, using the dynamic programming approach, we…

Optimization and Control · Mathematics 2023-02-20 Filippo de Feo , Salvatore Federico , Andrzej Święch

This paper investigates the optimal control problem for a class of parabolic equations where the diffusion coefficient is influenced by a control function acting nonlocally. Specifically, we consider the optimization of a cost functional…

Optimization and Control · Mathematics 2025-03-11 Stefana-Lucia Anita , Luca Di Persio

This article investigates the exact controllability of three-dimensional stochastic Maxwell equations, a coupled system comprising two stochastic partial differential equations. The research establishes the observability inequality for the…

Optimization and Control · Mathematics 2026-05-26 Liying Sun , Xiaohan Wang , Yongyi Yu

This paper studies {a} mixed singular/switching stochastic control problem for a multidimensional diffusion with multiples regimes on a bounded domain. Using probabilistic, partial differential equation (PDE) and penalization techniques, we…

Optimization and Control · Mathematics 2020-10-13 Mark Kelbert , Harold A. Moreno-Franco

We study the problem of optimal portfolio selection under stochastic volatility within a continuous time reinforcement learning framework with portfolio constraints. Exploration is modeled through entropy-regularized relaxed controls, where…

Mathematical Finance · Quantitative Finance 2026-04-27 Thai Nguyen , Pertiny Nkuize

We establish existence and uniqueness of minimax solutions for a fairly general class of path-dependent Hamilton-Jacobi equations. In particular, the relevant Hamiltonians can contain the solution and they only need to be measurable with…

Analysis of PDEs · Mathematics 2025-01-28 Elena Bandini , Christian Keller

In this paper, we adapt stochastic Perron's method to analyze a stochastic target problem with unbounded controls in a jump diffusion set-up. With this method, we construct a viscosity sub-solution and super-solution to the associated…

Optimization and Control · Mathematics 2016-05-18 Erhan Bayraktar , Jiaqi Li

The purpose of this paper is to describe the numerical solution of the Hamilton-Jacobi-Bellman (HJB) for an optimal control problem for quantum spin systems. This HJB equation is a first order nonlinear partial differential equation defined…

Quantum Physics · Physics 2011-10-05 Srinivas Sridharan , Matthew R. James

Continuous-time reinforcement learning offers an appealing formalism for describing control problems in which the passage of time is not naturally divided into discrete increments. Here we consider the problem of predicting the distribution…

Machine Learning · Computer Science 2022-06-20 Harley Wiltzer , David Meger , Marc G. Bellemare

In this work, we investigate a stochastic control framework for global optimization over both Euclidean spaces and the Wasserstein space of probability measures, where the objective function may be non-convex and/or non-differentiable. In…

Optimization and Control · Mathematics 2026-04-21 Jinniao Qiu

This paper addresses a continuous-time continuous-space chance-constrained stochastic optimal control (SOC) problem via a Hamilton-Jacobi-Bellman (HJB) partial differential equation (PDE). Through Lagrangian relaxation, we convert the…

Optimization and Control · Mathematics 2022-05-03 Apurva Patil , Alfredo Duarte , Aislinn Smith , Takashi Tanaka , Fabrizio Bisetti

This article studies a portfolio optimization problem, where the market consisting of several stocks is modeled by a multi-dimensional jump-diffusion process with age-dependent semi-Markov modulated coefficients. We study risk sensitive…

Portfolio Management · Quantitative Finance 2019-10-21 Milan Kumar Das , Anindya Goswami , Nimit Rana

The Hamilton Jacobi Bellman Equation (HJB) provides the globally optimal solution to large classes of control problems. Unfortunately, this generality comes at a price, the calculation of such solutions is typically intractible for systems…

Optimization and Control · Mathematics 2014-09-23 Matanya B. Horowitz , Anil Damle , Joel W. Burdick

We consider the portfolio optimisation problem where the terminal function is an S-shaped utility applied at the difference between the wealth and a random benchmark process. We develop several numerical methods for solving the problem…

Computational Finance · Quantitative Finance 2024-10-10 Ashley Davey , Harry Zheng