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This paper proposes an information-theoretic cost function for aggregating a Markov chain via a (possibly stochastic) mapping. The cost function is motivated by two objectives: 1) The process obtained by observing the Markov chain through…

Systems and Control · Computer Science 2019-10-11 Rana Ali Amjad , Clemens Blöchl , Bernhard C. Geiger

In this paper, we propose an approach to obtain reduced-order models of Markov chains. Our approach is composed of two information-theoretic processes. The first is a means of comparing pairs of stationary chains on different state spaces,…

Information Theory · Computer Science 2019-05-01 Isaac J. Sledge , Jose C. Principe

We survey information-theoretic approaches to the reduction of Markov chains. Our survey is structured in two parts: The first part considers Markov chain coarse graining, which focuses on projecting the Markov chain to a process on a…

Information Theory · Computer Science 2022-05-02 Bernhard C. Geiger

In this paper, we present a method for reducing a regular, discrete-time Markov chain (DTMC) to another DTMC with a given, typically much smaller number of states. The cost of reduction is defined as the Kullback-Leibler divergence rate…

Systems and Control · Computer Science 2017-05-08 Bernhard C. Geiger , Tatjana Petrov , Gernot Kubin , Heinz Koeppl

It is well known that any higher order Markov chain can be associated with a first order Markov chain. In this primarily expository article, we present the first fairly comprehensive analysis of the relationship between higher order and…

Probability · Mathematics 2026-02-20 Jianhong Xu

This paper proposes a new class of assortativity measures for weighted and directed networks. We extend the classical Newman's degree-degree assortativity by considering nodes' attributes different from the degree. Moreover, we propose…

Physics and Society · Physics 2024-03-05 Alberto Arcagni , Roy Cerqueti , Rosanna Grassi

This paper studies the estimation of low-rank Markov chains from empirical trajectories. We propose a non-convex estimator based on rank-constrained likelihood maximization. Statistical upper bounds are provided for the Kullback-Leiber…

Machine Learning · Statistics 2018-07-20 Xudong Li , Mengdi Wang , Anru Zhang

In this research the technology of complex Markov chains is applied to predict financial time series. The main distinction of complex or high-order Markov Chains and simple first-order ones is the existing of aftereffect or memory. The…

Statistical Finance · Quantitative Finance 2011-11-23 Vladimir Soloviev , Vladimir Saptsin , Dmitry Chabanenko

Higher-order Markov chains play a very important role in many fields, ranging from multilinear PageRank to financial modeling. In this paper, we propose three accelerated higher-order power methods for computing the limiting probability…

Optimization and Control · Mathematics 2020-08-26 Gaohang Yu , Yi Zhou , Laishui Lv

The main goal of the paper is to develop an estimate for the conditional probability function of random stationary ergodic symbolic sequences with elements belonging to a finite alphabet. We elaborate a decomposition procedure for the…

Data Analysis, Statistics and Probability · Physics 2017-08-09 S. S. Melnik , O. V. Usatenko

A key feature of inductive logic programming (ILP) is its ability to learn first-order programs, which are intrinsically more expressive than propositional programs. In this paper, we introduce techniques to learn higher-order programs.…

Machine Learning · Computer Science 2019-07-26 Andrew Cropper , Rolf Morel , Stephen H. Muggleton

Robust Markov Decision Processes (MDPs) are a powerful framework for modeling sequential decision-making problems with model uncertainty. This paper proposes the first first-order framework for solving robust MDPs. Our algorithm interleaves…

Optimization and Control · Mathematics 2021-01-18 Julien Grand-Clément , Christian Kroer

First-order stochastic methods are the state-of-the-art in large-scale machine learning optimization owing to efficient per-iteration complexity. Second-order methods, while able to provide faster convergence, have been much less explored…

Machine Learning · Statistics 2017-12-01 Naman Agarwal , Brian Bullins , Elad Hazan

A fundamental problem when aggregating Markov chains is the specification of the number of state groups. Too few state groups may fail to sufficiently capture the pertinent dynamics of the original, high-order Markov chain. Too many state…

Information Theory · Computer Science 2021-07-06 Isaac J. Sledge , Jose C. Principe

Two approaches to studying the correlation functions of the binary Markov sequences are considered. The first of them is based on the study of probability of occurring different ''words'' in the sequence. The other one uses recurrence…

Data Analysis, Statistics and Probability · Physics 2007-05-23 S. S. Apostolov , Z. A. Mayzelis , O. V. Usatenko , V. A. Yampol'skii

We propose a new family of multilevel methods for unconstrained minimization. The resulting strategies are multilevel extensions of high-order optimization methods based on q-order Taylor models (with q >= 1) that have been recently…

Numerical Analysis · Mathematics 2019-04-10 Henri Calandra , Serge Gratton , Elisa Riccietti , Xavier Vasseur

We describe estimators $\chi_n(X_0,X_1,...,X_n)$, which when applied to an unknown stationary process taking values from a countable alphabet ${\cal X}$, converge almost surely to $k$ in case the process is a $k$-th order Markov chain and…

Probability · Mathematics 2008-06-19 G. Morvai , B. Weiss

We consider a Markov chain that iteratively generates a sequence of random finite words in such a way that the $n^{\mathrm{th}}$ word is uniformly distributed over the set of words of length $2n$ in which $n$ letters are $a$ and $n$ letters…

Probability · Mathematics 2016-12-23 Hye Soo Choi , Steven N. Evans

We propose a very efficient method for pricing various types of lookback options under Markov models. We utilize the model-free representations of lookback option prices as integrals of first passage probabilities. We combine efficient…

Computational Finance · Quantitative Finance 2021-12-02 Gongqiu Zhang , Lingfei Li

We present an information-theoretic cost function for co-clustering, i.e., for simultaneous clustering of two sets based on similarities between their elements. By constructing a simple random walk on the corresponding bipartite graph, our…

Machine Learning · Computer Science 2018-06-18 Clemens Bloechl , Rana Ali Amjad , Bernhard C. Geiger
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