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Online learning methods yield sequential regret bounds under minimal assumptions and provide in-expectation risk bounds for statistical learning. However, despite the apparent advantage of online guarantees over their statistical…

Machine Learning · Computer Science 2023-08-16 Dirk van der Hoeven , Nikita Zhivotovskiy , Nicolò Cesa-Bianchi

Sponsored search auctions constitute one of the most successful applications of microeconomic mechanisms. In mechanism design, auctions are usually designed to incentivize advertisers to bid their truthful valuations and to assure both the…

Computer Science and Game Theory · Computer Science 2014-05-13 Nicola Gatti , Alessandro Lazaric , Marco Rocco , Francesco Trovò

We develop a new approach to multi-label conformal prediction in which we aim to output a precise set of promising prediction candidates with a bounded number of incorrect answers. Standard conformal prediction provides the ability to adapt…

Machine Learning · Computer Science 2022-02-16 Adam Fisch , Tal Schuster , Tommi Jaakkola , Regina Barzilay

Recent empirical studies suggest that the volatilities associated with financial time series exhibit short-range correlations. This entails that the volatility process is very rough and its autocorrelation exhibits sharp decay at the…

Pricing of Securities · Quantitative Finance 2018-04-17 Josselin Garnier , Knut Solna

Autonomous systems are increasingly expected to operate in the presence of adversaries, though adversaries may infer sensitive information simply by observing a system. Therefore, present a deceptive sequential decision-making framework…

Consider an investor trading dynamically to maximize expected utility from terminal wealth. Our aim is to study the dependence between her risk aversion and the distribution of the optimal terminal payoff. Economic intuition suggests that…

General Finance · Quantitative Finance 2011-09-15 Mathias Beiglboeck , Johannes Muhle-Karbe , Johannes Temme

Chance-constrained programming (CCP) is one of the most difficult classes of optimization problems that has attracted the attention of researchers since the 1950s. In this survey, we focus on cases when only a limited information on the…

Optimization and Control · Mathematics 2022-02-15 Simge Küçükyavuz , Ruiwei Jiang

Optimization problems involving complex variables, when solved, are typically transformed into real variables, often at the expense of convergence rate and interpretability. This paper introduces a novel formalism for a prominent problem in…

Optimization and Control · Mathematics 2025-04-07 Raneem Madani , Abdel Lisser

Extracting implied information, like volatility and/or dividend, from observed option prices is a challenging task when dealing with American options, because of the computational costs needed to solve the corresponding mathematical problem…

Computational Finance · Quantitative Finance 2020-02-05 Shuaiqiang Liu , Álvaro Leitao , Anastasia Borovykh , Cornelis W. Oosterlee

This paper studies oligopolistic irreversible investment with closed-loop strategies. These permit fully dynamic interactions that result in much richer strategic behavior than previous studies with open-loop strategies allow. The tradeoff…

Theoretical Economics · Economics 2024-10-24 Jan-Henrik Steg

We consider the problem of expected cost analysis over nondeterministic probabilistic programs, which aims at automated methods for analyzing the resource-usage of such programs. Previous approaches for this problem could only handle…

Programming Languages · Computer Science 2019-03-26 Peixin Wang , Hongfei Fu , Amir Kafshdar Goharshady , Krishnendu Chatterjee , Xudong Qin , Wenjun Shi

We reconsider the problem of option pricing using historical probability distributions. We first discuss how the risk-minimisation scheme proposed recently is an adequate starting point under the realistic assumption that price increments…

Condensed Matter · Physics 2009-10-31 Jean-Philippe Bouchaud , Marc Potters

Considering mean-variance portfolio problems with uncertain model parameters, we contrast the classical absolute robust optimization approach with the relative robust approach based on a maximum regret function. Although the latter problems…

Portfolio Management · Quantitative Finance 2013-05-14 Raphael Hauser , Vijay Krishnamurthy , Reha Tütüncü

Autonomous systems increasingly rely on machine learning techniques to transform high-dimensional raw inputs into predictions that are then used for decision-making and control. However, it is often easy to maliciously manipulate such…

Machine Learning · Computer Science 2023-02-07 Jinghan Yang , Hunmin Kim , Wenbin Wan , Naira Hovakimyan , Yevgeniy Vorobeychik

This paper considers linear discrete-time systems with additive disturbances, and designs a Model Predictive Control (MPC) law to minimise a quadratic cost function subject to a chance constraint. The chance constraint is defined as a…

Systems and Control · Computer Science 2020-07-15 Shuhao Yan , Paul Goulart , Mark Cannon

A common assumption in financial engineering is that the market price for any derivative coincides with an objectively defined risk-neutral price - a plausible assumption only if traders collectively possess objective knowledge about the…

Pricing of Securities · Quantitative Finance 2013-10-08 Kerry W. Fendick

As ML models are increasingly deployed in critical applications, robustness against adversarial perturbations is crucial. While numerous defenses have been proposed to counter such attacks, they typically assume that all adversarial…

Machine Learning · Computer Science 2025-06-11 Yuan Xin , Dingfan Chen , Michael Backes , Xiao Zhang

We propose an enhancement to wholesale electricity markets whereby the exposure of consumers to increasingly large and volatile consumer payments arising as a byproduct of volatile real-time net loads -- i.e., loads minus renewable outputs…

Optimization and Control · Mathematics 2024-08-13 Daniel Bienstock , Yury Dvorkin , Cheng Guo , Robert Mieth , Jiayi Wang

In this paper, an optimization problem with uncertain constraint coefficients is considered. Possibility theory is used to model the uncertainty. Namely, a joint possibility distribution in constraint coefficient realizations, called…

Optimization and Control · Mathematics 2023-09-07 Romain Guillaume , Adam Kasperski , Pawel Zielinski

Preferential Bayesian optimization allows optimization of objectives that are either expensive or difficult to measure directly, by relying on a minimal number of comparative evaluations done by a human expert. Generating candidate…

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