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We study optimal liquidation in the presence of linear temporary and transient price impact along with taking into account a general price predicting finite-variation signal. We formulate this problem as minimization of a cost-risk…

Trading and Market Microstructure · Quantitative Finance 2022-01-17 Eyal Neuman , Moritz Voß

We present a numerical method for computing optimal transition pathways and transition rates in systems of stochastic differential equations (SDEs). In particular, we compute the most probable transition path of stochastic equations by…

Dynamical Systems · Mathematics 2015-06-11 Brandon S. Lindley , Ira B. Schwartz

In the present work we employ, for the first time, backward stochastic differential equations (BSDEs) to study the optimal control of semi-Markov processes on finite horizon, with general state and action spaces. More precisely, we prove…

Optimization and Control · Mathematics 2015-05-27 Elena Bandini , Fulvia Confortola

In this paper we consider stochastic optimization problems for an ambiguity averse decision maker who is uncertain about the parameters of the underlying process. In a first part we consider problems of optimal stopping under drift…

Computational Finance · Quantitative Finance 2015-03-19 Sören Christensen

In this paper, we consider a risk-based optimal investment problem of an insurer in a regime-switching jump diffusion model with noisy memory. Using the model uncertainty modeling, we formulate the investment problem as a zero-sum,…

Portfolio Management · Quantitative Finance 2019-03-25 Rodwell Kufakunesu , Calisto Guambe , Lesedi Mabitsela

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

The connection between forward backward doubly stochastic differential equations and the optimal filtering problem is established without using the Zakai's equation. The solutions of forward backward doubly stochastic differential equations…

Numerical Analysis · Mathematics 2018-05-29 Richard Archibald , Feng Bao , Peter Maksymovych

This paper studies a discrete-time optimal switching problem on a finite horizon. The underlying model has a running reward, terminal reward and signed (positive and negative) switching costs. Using the martingale approach to optimal…

Optimization and Control · Mathematics 2016-10-17 Randall Martyr

The scope of this paper is to study the optimal stopping problems associated to a stochastic process, which may represent the gain of an investment, for which information on the final value is available a priori. This information may…

Probability · Mathematics 2019-09-09 Bernardo D'Auria , Alessandro Ferriero

We consider reinforcement learning in changing Markov Decision Processes where both the state-transition probabilities and the reward functions may vary over time. For this problem setting, we propose an algorithm using a sliding window…

Machine Learning · Computer Science 2018-05-28 Pratik Gajane , Ronald Ortner , Peter Auer

In this paper, we study the reflected backward stochastic differential equation driven by G-Brownian motion (reflected G-BSDE for short) with an upper obstacle. The existence is proved by approximation via penalization. By using a variant…

Probability · Mathematics 2017-09-29 Hanwu Li , Shige Peng

We study optimal stochastic control problem for non-Markovian stochastic differential equations (SDEs) where the drift, diffusion coefficients, and gain functionals are path-dependent, and importantly we do not make any ellipticity…

Probability · Mathematics 2013-11-04 Marco Fuhrman , Huyên Pham

A solution to the optimal problem for determining vector fields which maximize (resp. minimize) the transition probabilities from one location to another for a class of reflecting diffusion processes is obtained in the present paper. The…

Probability · Mathematics 2023-04-27 Zhongmin Qian , Xingcheng Xu

We establish the existence of both optimal relaxed controls and strict optimal controls for systems driven by Reflected Stochastic Differential Equations RSDEs. Our approach is based on weak convergence techniques for the associated RSDEs…

Probability · Mathematics 2025-11-25 Ayoub Laayoun , Badr Missaoui

Controlling the evolution of nonequilibrium systems to minimize dissipated heat or work is a key goal for designing nanodevices, both in nanotechnology and biology. Progress in computing optimal protocols has thus far been limited to either…

Computational Physics · Physics 2022-01-04 Megan C. Engel , Jamie A. Smith , Michael P. Brenner

We consider the optimal stopping problem for a Gauss-Markov process conditioned to adopt a prescribed terminal distribution. By applying a time-space transformation, we show it is equivalent to stopping a Brownian bridge pinned at a random…

Probability · Mathematics 2025-05-26 Abel Azze , Bernardo D'Auria

The main contributions of this paper are three fold. First, our primary concern is to investigate a class of stochastic recursive delayed control problems which arise naturally with sound backgrounds but have not been well-studied yet. For…

Optimization and Control · Mathematics 2011-12-06 Li Chen , Jianhui Huang

This paper studies the bailout optimal dividend problem with regime switching under the constraint that dividend payments can be made only at the arrival times of an independent Poisson process while capital can be injected continuously in…

Probability · Mathematics 2022-07-05 Dante Mata , Harold A. Moreno-Franco , Kei Noba , José-Luis Pérez

This paper studies a class of non$-$Markovian singular stochastic control problems, for which we provide a novel probabilistic representation. The solution of such control problem is proved to identify with the solution of a $Z-$constrained…

Optimization and Control · Mathematics 2018-02-27 Romuald Elie , Ludovic Moreau , Dylan Possamaï

We consider a class of optimal control problems, with finite or infinite horizon, for a continuous-time Markov chain with finite state space. In this case, the control process affects the transition rates. We suppose that the controlled…

Optimization and Control · Mathematics 2026-02-19 Fulvia Confortola , Marco Fuhrman