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We consider a continuous time Principal-Agent model on a finite time horizon, where we look for the existence of an optimal contract both parties agreed on. Contrary to the main stream, where the principal is modelled as risk-neutral, we…

Optimization and Control · Mathematics 2018-06-06 Kerem Ugurlu

Adaptive guaranteed-performance consensus control problems for multi-agent systems are investigated, where the adjustable convergence speed is discussed. This paper firstly proposes a novel adaptive guaranteed-performance consensus…

Systems and Control · Computer Science 2019-06-12 Hai-Ying Ma , Xiao Jia , Ning Cai , Jian-Xiang Xi

We consider a multi-armed bandit problem in a setting where each arm produces a noisy reward realization which depends on an observable random covariate. As opposed to the traditional static multi-armed bandit problem, this setting allows…

Statistics Theory · Mathematics 2013-05-27 Vianney Perchet , Philippe Rigollet

Monetary risk measures are usually interpreted as the smallest amount of external capital that must be added to a financial position to make it acceptable. We propose a new concept: intrinsic risk measures and argue that this approach…

Risk Management · Quantitative Finance 2016-10-28 W. Farkas , A. Smirnow

In this work, we investigate the optimal control problem for continuous-time Markov decision processes with the random impact of the environment. We provide conditions to show the existence of optimal controls under finite-horizon criteria.…

Optimization and Control · Mathematics 2020-06-23 Jinghai Shao , Kun Zhao

We consider the problem of computing optimal linear control policies for linear systems in finite-horizon. The states and the inputs are required to remain inside pre-specified safety sets at all times despite unknown disturbances. In this…

Systems and Control · Computer Science 2019-12-17 Luca Furieri , Maryam Kamgarpour

We study the optimal portfolio selection problem under relative performance criteria in the market model with random coefficients from the perspective of many players game theory. We consider five random coefficients which consist of three…

Portfolio Management · Quantitative Finance 2022-09-16 Jeong Yin Park

In this paper we address the problem of decision making within a Markov decision process (MDP) framework where risk and modeling errors are taken into account. Our approach is to minimize a risk-sensitive conditional-value-at-risk (CVaR)…

Artificial Intelligence · Computer Science 2015-06-09 Yinlam Chow , Aviv Tamar , Shie Mannor , Marco Pavone

We propose an optimal solution to a deterministic dynamic assignment problem by leveraging connections to the theory of discrete optimal transport to convert the combinatorial assignment problem into a tractable linear program. We seek to…

Multiagent Systems · Computer Science 2019-10-25 Koray G. Kachar , Alex A. Gorodetsky

In this paper, we consider the control problem with the Average-Value-at-Risk (AVaR) criteria of the possibly unbounded $L^{1}$-costs in infinite horizon on a Markov Decision Process (MDP). With a suitable state aggregation and by choosing…

Probability · Mathematics 2015-11-18 Kerem Ugurlu

In a variety of applications, an agent's success depends on the knowledge that an adversarial observer has or can gather about the agent's decisions. It is therefore desirable for the agent to achieve a task while reducing the ability of an…

Optimization and Control · Mathematics 2018-09-19 Mustafa O. Karabag , Melkior Ornik , Ufuk Topcu

We consider reinforcement learning with performance evaluated by a dynamic risk measure. We construct a projected risk-averse dynamic programming equation and study its properties. Then we propose risk-averse counterparts of the methods of…

Optimization and Control · Mathematics 2020-03-03 Umit Kose , Andrzej Ruszczynski

We consider various stochastic models that incorporate the notion of risk-averseness into the standard 2-stage recourse model, and develop novel techniques for solving the algorithmic problems arising in these models. A key notable feature…

Data Structures and Algorithms · Computer Science 2008-05-06 Chaitanya Swamy

The aim of this paper is to study an optimal stopping problem for dynamic risk measures induced by backward stochastic differential equations with jumps and delayed generator. Firstly, we connect the value function of this problem to…

Probability · Mathematics 2021-10-06 Tuo Navegue , Auguste Aman

In this paper we propose the notion of continuous-time dynamic spectral risk-measure (DSR). Adopting a Poisson random measure setting, we define this class of dynamic coherent risk-measures in terms of certain backward stochastic…

Probability · Mathematics 2017-04-19 Dilip Madan , Martijn Pistorius , Mitja Stadje

Consider a multi-agent network comprised of risk averse social sensors and a controller that jointly seek to estimate an unknown state of nature, given noisy measurements. The network of social sensors perform Bayesian social learning -…

Optimization and Control · Mathematics 2017-12-22 Sujay Bhatt , Vikram Krishnamurthy

We build on the theory of capital requirements (CRs) to create a new framework for modeling dynamic risk preferences. The key question is how to evaluate the risk of a payoff stream sequentially as new information is revealed. In our model,…

Optimization and Control · Mathematics 2024-01-12 William B. Haskell , Abhishek Gupta , Shiping Shao

This paper studies a continuous-time portfolio selection problem under a general distribution of random risk aversion (RRA). We provide a complete characterization of all deterministic equilibrium strategies in closed form. Our results show…

Mathematical Finance · Quantitative Finance 2026-02-02 Weilun Cheng , Zongxia Liang , Sheng Wang , Jianming Xia

Balancing safety and efficiency when planning in dense traffic is challenging. Interactive behavior planners incorporate prediction uncertainty and interactivity inherent to these traffic situations. Yet, their use of single-objective…

Artificial Intelligence · Computer Science 2021-02-08 Julian Bernhard , Alois Knoll

This paper firstly addresses the problem of risk assessment under false data injection attacks on uncertain control systems. We consider an adversary with complete system knowledge, injecting stealthy false data into an uncertain control…

Systems and Control · Electrical Eng. & Systems 2022-12-12 Sribalaji C. Anand , André M. H. Teixeira , Anders Ahlén