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We propose an {\em implementable} numerical scheme for the discretization of linear-quadratic optimal control problems involving SDEs in higher dimensions with {\em control constraint}. For time discretization, we employ the implicit Euler…

Analysis of PDEs · Mathematics 2024-12-12 Abhishek Chaudhary

We explore an optimal impulse control problem wherein an electronic device owner strategically calibrates protection levels against cyber attacks. Utilizing epidemiological compartment models, we qualitatively characterize the dynamics of…

Optimization and Control · Mathematics 2024-10-24 Caroline Hillairet , Thibaut Mastrolia , Wissal Sabbagh

We consider the design of structure-preserving discretization methods for the solution of systems of boundary controlled Partial Differential Equations (PDEs) thanks to the port-Hamiltonian formalism. We first provide a novel general…

Numerical Analysis · Mathematics 2020-09-30 Andrea Brugnoli , Ghislain Haine , Anass Serhani , Xavier Vasseur

This paper considers a portfolio optimization problem in which asset prices are represented by SDEs driven by Brownian motion and a Poisson random measure, with drifts that are functions of an auxiliary diffusion 'factor' process. The…

Portfolio Management · Quantitative Finance 2015-03-13 Mark H. A. Davis , Sebastien Lleo

In this paper we study the fully nonlinear stochastic Hamilton-Jacobi-Bellman (HJB) equation for the optimal stochastic control problem of stochastic differential equations with random coefficients. The notion of viscosity solution is…

Optimization and Control · Mathematics 2018-07-16 Jinniao Qiu

We consider a class of infinite-dimensional singular stochastic control problems. These can be thought of as spatial monotone follower problems and find applications in spatial models of production and climate transition. Let…

Optimization and Control · Mathematics 2026-03-06 Salvatore Federico , Giorgio Ferrari , Frank Riedel , Michael Röckner

This work presents a convex-optimization-based framework for analysis and control of nonlinear partial differential equations. The approach uses a particular weak embedding of the nonlinear PDE, resulting in a linear equation in the space…

Optimization and Control · Mathematics 2018-04-23 Milan Korda , Didier Henrion , Jean-Bernard Lasserre

Recently, the numerical solution of multi-frequency, highly-oscillatory Hamiltonian problems has been attacked by using Hamiltonian Boundary Value Methods (HBVMs) as spectral methods in time. When the problem derives from the space semi-…

Numerical Analysis · Mathematics 2018-08-14 Luigi Brugnano , Felice Iavernaro , Juan I. Montijano , Luis Ràndez

Nonzero-sum stochastic differential games with impulse controls offer a realistic and far-reaching modelling framework for applications within finance, energy markets, and other areas, but the difficulty in solving such problems has…

Numerical Analysis · Mathematics 2020-06-29 Diego Zabaljauregui

We develop dynamical programming methods for the purpose of optimal control of quantum states with convex constraints and concave cost and bequest functions of the quantum state. We consider both open loop and feedback control schemes,…

Quantum Physics · Physics 2009-03-06 Viacheslav P. Belavkin , Antonio Negretti , Klaus Molmer

We propose a class of numerical schemes for mixed optimal stopping and control of processes with infinite activity jumps and where the objective is evaluated by a nonlinear expectation. Exploiting an approximation by switching systems,…

Numerical Analysis · Mathematics 2018-03-13 Roxana Dumitrescu , Christoph Reisinger , Yufei Zhang

In this paper, we study the optimal singular controls for stochastic recursive systems, in which the control has two components: the regular control, and the singular control. Under certain assumptions, we establish the dynamic programming…

Optimization and Control · Mathematics 2018-11-06 Liangquan Zhang

In this paper we consider a broad class of infinite horizon discrete-time optimal control models that involve a nonnegative cost function and an affine mapping in their dynamic programming equation. They include as special cases classical…

Optimization and Control · Mathematics 2017-11-29 Dimitri Bertsekas

In this paper we study a class of stochastic control problems in which the control of the jump size is essential. Such a model is a generalized version for various applied problems ranging from optimal reinsurance selections for general…

Probability · Mathematics 2008-04-04 Rainer Buckdahn , Jin Ma , Catherine Rainer

In this paper, we investigate a sparse optimal control of continuous-time stochastic systems. We adopt the dynamic programming approach and analyze the optimal control via the value function. Due to the non-smoothness of the $L^0$ cost…

Optimization and Control · Mathematics 2021-09-17 Kaito Ito , Takuya Ikeda , Kenji Kashima

We investigate a singular-optimal stopping stochastic control problem driven by self-exciting dynamics governed by a Hawkes process. In the continuous-time setting, we show that the optimization problem reduces to solving a variational…

Optimization and Control · Mathematics 2026-02-06 Isabel Agostino , Thibaut Mastrolia

This paper studies constrained optimal impulse control problems of a deterministic system described by a (semi)flow, where the performance measures are the discounted total costs including both the costs incurred with applying impulses as…

Optimization and Control · Mathematics 2025-04-28 Alexey Piunovskiy , Yi Zhang

In this paper, we first conduct a study of the portfolio selection problem, incorporating both exogenous (proportional) and endogenous (resulting from liquidity risk, characterized by a stochastic process) transaction costs through the…

Mathematical Finance · Quantitative Finance 2025-09-03 Dong Yan , Nanyi Zhang , Junyi Guo

In this paper, we aim to develop the theory of optimal stochastic control for branching diffusion processes where both the movement and the reproduction of the particles depend on the control. More precisely, we study the problem of…

Probability · Mathematics 2016-09-19 Julien Claisse

In this paper, we consider a class of stochastic control problems for stochastic differential equations with random coefficients. The control domain need not to be convex but the control process is not allowed to enter in diffusion term.…

Optimization and Control · Mathematics 2020-08-06 Ishak Alia , Mohamed Sofiane Alia