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In this paper, we study a stochastic linear-quadratic control problem with random coefficients and regime switching on a horizon $[0,T\wedge\tau]$, where $\tau$ is a given random jump time for the underlying state process and $T$ is a…

Optimization and Control · Mathematics 2022-01-19 Ying Hu , Xiaomin Shi , Zuo Quan Xu

This paper investigates optimal control problems for delayed systems governed by Infinitely Anticipated Backward Stochastic Differential Equations (IABSDEs). Unlike existing frameworks limited to bounded delays, we introduce a generalized…

Optimization and Control · Mathematics 2025-12-22 Guanwei Cheng

We provide a probabilistic solution of a not necessarily Markovian control problem with a state constraint by means of a Backward Stochastic Differential Equation (BSDE). The novelty of our solution approach is that the BSDE possesses a…

Optimization and Control · Mathematics 2013-06-04 Stefan Ankirchner , Monique Jeanblanc , Thomas Kruse

In this paper we look at ergodic BSDEs in the case where the forward dynamics are given by the solution to a non-autonomous (time-periodic coefficients) Ornstein-Uhlenbeck SDE with L\'evy noise, taking values in a separable Hilbert space.…

Probability · Mathematics 2015-11-11 Samuel N. Cohen , Victor Fedyashov

We study an optimal investment problem under contagion risk in a financial model subject to multiple jumps and defaults. The global market information is formulated as a progressive enlargement of a default-free Brownian filtration, and the…

Probability · Mathematics 2013-02-22 Ying Jiao , Idris Kharroubi , Huyên Pham

In this article, we present a general methodology for control problems driven by the Brownian motion filtration including non-Markovian and non-semimartingale state processes controlled by mutually singular measures. The main result of this…

Probability · Mathematics 2018-01-19 Dorival Leão , Alberto Ohashi , Francys Souza

It is well known that stability is the most fundamental nature with regard to a control system, in view of this, the stabilization becomes an inevitable control problem. This article mainly discusses the optimal control and stabilization…

Optimization and Control · Mathematics 2018-03-21 Hongdan Li , Chunyan Han , Huanshui Zhang

This article is concerned with an optimal control problem derived by mean-field forward-backward stochastic differential equation with noisy observation, where the drift coefficients of the state equation and the observation equation are…

Optimization and Control · Mathematics 2017-01-09 Guangchen Wang , Hua Xiao , Guojing Xing

This paper is concerned with a Stackelberg stochastic differential game, where the systems are driven by stochastic differential equation (SDE for short), in which the control enters the randomly disturbed coefficients (drift and…

Optimization and Control · Mathematics 2021-08-12 Liangquan Zhang , Wei Zhang

We study an optimal control problem related to swing option pricing in a general non-Markovian setting in continuous time. As a main result we show that the value process solves a first-order non-linear backward stochastic partial…

Pricing of Securities · Quantitative Finance 2021-05-31 Christian Bender , Nikolai Dokuchaev

We study a finite-dimensional continuous-time optimal control problem on finite horizon for a controlled diffusion driven by Brownian motion, in the linear-quadratic case. We admit stochastic coefficients, possibly depending on an…

Optimization and Control · Mathematics 2016-09-19 Fulvia Confortola , Marco Fuhrman , Giuseppina Guatteri , Gianmario Tessitore

In this paper, we consider a general time-inconsistent optimal control problem for a non homogeneous linear system, in which its state evolves according to a stochastic differential equation with deterministic coefficients, when the noise…

Optimization and Control · Mathematics 2015-05-19 Ishak Alia , Farid Chighoub , Ayesha Sohail

This paper studies an optimal dividend problem with a drawdown constraint in a Brownian motion model, requiring the dividend payout rate to remain above a fixed proportion of its historical maximum. This leads to a path-dependent stochastic…

Mathematical Finance · Quantitative Finance 2026-01-08 Chonghu Guan , Jiacheng Fan , Zuo Quan Xu

In this paper we present a novel sampling-based numerical scheme designed to solve a certain class of stochastic optimal control problems, utilizing forward and backward stochastic differential equations (FBSDEs). By means of a nonlinear…

Systems and Control · Computer Science 2020-06-18 Ioannis Exarchos , Evangelos A. Theodorou

In this paper, we study a class of multi-dimensional reflected backward stochastic differential equations when the noise is driven by a Brownian motion and an independent Poisson point process, and when the solution is forced to stay in a…

Probability · Mathematics 2015-01-26 Imade Fakhouri , Youssef Ouknine , Yong Ren

We define a class of reflected backward stochastic differential equation (RBSDE) driven by a marked point process (MPP) and a Brownian motion, where the solution is constrained to stay above a given c\`adl\`ag process. The MPP is only…

Probability · Mathematics 2017-09-28 Nahuel Foresta

We obtain a maximum principle for stochastic control problem of general controlled stochastic differential systems driven by fractional Brownian motions (of Hurst parameter $H>1/2$). This maximum principle specifies a system of equations…

Optimization and Control · Mathematics 2012-03-15 Yuecai Han , Yaozhong Hu , Jian Song

We study the problem of optimally managing an inventory with unknown demand trend. Our formulation leads to a stochastic control problem under partial observation, in which a Brownian motion with non-observable drift can be singularly…

Optimization and Control · Mathematics 2022-11-28 Salvatore Federico , Giorgio Ferrari , Neofytos Rodosthenous

In this paper, we study a kind of optimal control problem for forward-backward stochastic differential equations (FBSDEs for short) of McKean--Vlasov type via the dynamic programming principle (DPP for short) motivated by studying the…

Optimization and Control · Mathematics 2024-07-09 Liangquan Zhang

We consider a Bayesian adaptive optimal stochastic control problem where a hidden static signal has a non-separable influence on the drift of a noisy observation. Being allowed to control the specific form of this dependence, we aim at…

Optimization and Control · Mathematics 2025-12-22 Alexander M. G. Cox , Sigrid Källblad , Chaorui Wang
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