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Recently two approximate Newton methods were proposed for the optimisation of Markov Decision Processes. While these methods were shown to have desirable properties, such as a guarantee that the preconditioner is negative-semidefinite when…

Optimization and Control · Mathematics 2015-08-05 Thomas Furmston , Guy Lever

We study the convergence of Markov Decision Processes made of a large number of objects to optimization problems on ordinary differential equations (ODE). We show that the optimal reward of such a Markov Decision Process, satisfying a…

Artificial Intelligence · Computer Science 2011-05-20 Nicolas Gast , Bruno Gaujal , Jean-Yves Le Boudec

The problem of solving Markov decision processes under function approximation remains a fundamental challenge, even under linear function approximation settings. A key difficulty arises from a geometric mismatch: while the Bellman…

Machine Learning · Computer Science 2026-04-09 Hyukjun Yang , Han-Dong Lim , Donghwan Lee

In this work we address the problem of finding feasible policies for Constrained Markov Decision Processes under probability one constraints. We argue that stationary policies are not sufficient for solving this problem, and that a rich…

Machine Learning · Computer Science 2023-02-14 Agustin Castellano , Hancheng Min , Juan Bazerque , Enrique Mallada

Many problems of theoretical and practical interest involve finding an optimum over a family of convex functions. For instance, finding the projection on the convex functions in $H^k(\Omega)$, and optimizing functionals arising from some…

Numerical Analysis · Mathematics 2008-04-11 Néstor E. Aguilera , Pedro Morin

Markov Decision Processes (MDPs) have been used to formulate many decision-making problems in science and engineering. The objective is to synthesize the best decision (action selection) policies to maximize expected rewards (or minimize…

Optimization and Control · Mathematics 2015-07-07 Mahmoud El Chamie , Behcet Acikmese

We propose and analyze a temporal concatenation heuristic for solving large-scale finite-horizon Markov decision processes (MDP), which divides the MDP into smaller sub-problems along the time horizon and generates an overall solution by…

Optimization and Control · Mathematics 2022-06-22 Ruiyang Song , Kuang Xu

This paper proposes an accelerated method for approximately solving partially observable Markov decision process (POMDP) problems offline. Our method carefully combines two existing tools: Anderson acceleration (AA) and the fast informed…

Systems and Control · Electrical Eng. & Systems 2021-03-30 Melike Ermis , Mingyu Park , Insoon Yang

A general method to construct recombinant tree approximations for stochastic volatility models is developed and applied to the Heston model for stock price dynamics. In this application, the resulting approximation is a four tuple Markov…

Computational Finance · Quantitative Finance 2016-08-14 Erdinç Akyıldırım , Yan Dolinsky , H. Mete Soner

Mirror descent is a well established tool for solving convex optimization problems with convex constraints. This article introduces continuous-time mirror descent dynamics for approximating optimal Markov controls for stochastic control…

Optimization and Control · Mathematics 2025-06-04 Deven Sethi , David Šiška

We study the problem of computing the value function from a discretely-observed trajectory of a continuous-time diffusion process. We develop a new class of algorithms based on easily implementable numerical schemes that are compatible with…

Machine Learning · Computer Science 2024-07-09 Wenlong Mou , Yuhua Zhu

Operator convex functions defined on the positive half-line play a prominent role in the theory of quantum information, where they are used to define quantum $f$-divergences. Such functions admit integral representations in terms of…

Optimization and Control · Mathematics 2023-05-23 Oisín Faust , Hamza Fawzi

We consider finite model approximations of discrete-time partially observed Markov decision processes (POMDPs) under the discounted cost criterion. After converting the original partially observed stochastic control problem to a fully…

Systems and Control · Computer Science 2017-10-20 Naci Saldi , Serdar Yüksel , Tamás Linder

Constrained Markov decision processes (CMDPs) are used as a decision-making framework to study the long-run performance of a stochastic system. It is well-known that a stationary optimal policy of a CMDP problem under discounted cost…

Optimization and Control · Mathematics 2025-06-02 V Varagapriya , Vikas Vikram Singh , Abdel Lisser

We prove a functional limit theorem for Markov chains that, in each step, move up or down by a possibly state dependent constant with probability $1/2$, respectively. The theorem entails that the law of every one-dimensional regular…

Probability · Mathematics 2020-05-13 Stefan Ankirchner , Thomas Kruse , Mikhail Urusov

We present the first finite-sample analysis of policy evaluation in robust average-reward Markov Decision Processes (MDPs). Prior work in this setting have established only asymptotic convergence guarantees, leaving open the question of…

Machine Learning · Statistics 2025-12-11 Yang Xu , Washim Uddin Mondal , Vaneet Aggarwal

The aim of this study is to devise numerical methods for dealing with very high-dimensional Bermudan-style derivatives. For such problems, we quickly see that we can at best hope for price bounds, and we can only use a simulation approach.…

Computational Finance · Quantitative Finance 2016-01-06 L. C. G. Rogers

This paper gives an overview of the theory of dynamic convex risk measures for random variables in discrete time setting. We summarize robust representation results of conditional convex risk measures, and we characterize various time…

Risk Management · Quantitative Finance 2010-02-22 Beatrice Acciaio , Irina Penner

We consider the approximation scheme of the American call option via the discrete Morse semiflow. It is the minimizing scheme of a time-semidiscretized variational functional. In this paper we obtain a rate of convergence of approximate…

Analysis of PDEs · Mathematics 2009-10-30 Katsuyuki Ishii , Seiro Omata

Motivated by uncertain parameters encountered in Markov decision processes (MDPs) and stochastic games, we study the effect of parameter uncertainty on Bellman operator-based algorithms under a set-based framework. Specifically, we first…

Computer Science and Game Theory · Computer Science 2021-12-14 Sarah H. Q. Li , Assalé , Adjé , Pierre-Loïc Garoche , Behçet Açıkmeşe