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Decision-making problems often feature uncertainty stemming from heterogeneous and context-dependent human preferences. To address this, we propose a sequential learning-and-optimization pipeline to learn preference distributions and…

Machine Learning · Computer Science 2026-03-19 Benjamin Hudson , Laurent Charlin , Emma Frejinger

Ben-Tal and Teboulle \cite{BTT86} introduce the concept of optimized certainty equivalent (OCE) of an uncertain outcome as the maximum present value of a combination of the cash to be taken out from the uncertain income at present and the…

Optimization and Control · Mathematics 2022-03-22 Qiong Wu , Huifu Xu

We consider Bayesian optimization of expensive-to-evaluate experiments that generate vector-valued outcomes over which a decision-maker (DM) has preferences. These preferences are encoded by a utility function that is not known in closed…

Machine Learning · Computer Science 2022-03-23 Zhiyuan Jerry Lin , Raul Astudillo , Peter I. Frazier , Eytan Bakshy

We study quasi-convex optimization problems, where only a subset of the constraints can be sampled, and yet one would like a probabilistic guarantee on the obtained solution with respect to the initial (unknown) optimization problem. Even…

Optimization and Control · Mathematics 2021-01-06 Guillaume O. Berger , Raphaël M. Jungers , Zheming Wang

This work focuses on the mathematical study of constant function market makers. We rigorously establish the conditions for optimal trading under the assumption of a quasilinear, but not necessarily convex (or concave), trade function. This…

Optimization and Control · Mathematics 2024-05-14 C. Escudero , F. Lara , M. Sama

Economists often estimate economic models on data and use the point estimates as a stand-in for the truth when studying the model's implications for optimal decision-making. This practice ignores model ambiguity, exposes the decision…

Econometrics · Economics 2021-10-07 Maximilian Blesch , Philipp Eisenhauer

In robust decision-making under non-Bayesian uncertainty, different robust optimization criteria, such as maximin performance, minimax regret, and maximin ratio, have been proposed. In many problems, all three criteria are well-motivated…

Optimization and Control · Mathematics 2024-03-20 Jerry Anunrojwong , Santiago R. Balseiro , Omar Besbes

We revisit the problem of portfolio selection, where an investor maximizes utility subject to a risk constraint. Our framework is very general and accommodates a wide range of utility and risk functionals, including non-concave utilities…

Mathematical Finance · Quantitative Finance 2025-09-15 Leonardo Baggiani , Martin Herdegen , Nazem Khan

We study the problem of policy synthesis for uncertain partially observable Markov decision processes (uPOMDPs). The transition probability function of uPOMDPs is only known to belong to a so-called uncertainty set, for instance in the form…

Optimization and Control · Mathematics 2020-01-24 Marnix Suilen , Nils Jansen , Murat Cubuktepe , Ufuk Topcu

In this paper a class of optimization problems with uncertain linear constraints is discussed. It is assumed that the constraint coefficients are random vectors whose probability distributions are only partially known. Possibility theory is…

Optimization and Control · Mathematics 2021-11-30 Romain Guillaume , Adam Kasperski , Pawel Zielinski

Submodular continuous functions are a category of (generally) non-convex/non-concave functions with a wide spectrum of applications. We characterize these functions and demonstrate that they can be maximized efficiently with approximation…

Machine Learning · Computer Science 2019-05-07 Andrew An Bian , Baharan Mirzasoleiman , Joachim M. Buhmann , Andreas Krause

A continuous-time financial portfolio selection model with expected utility maximization typically boils down to solving a (static) convex stochastic optimization problem in terms of the terminal wealth, with a budget constraint. In…

Portfolio Management · Quantitative Finance 2022-01-07 Hanqing Jin , Zuo Quan Xu , Xun Yu Zhou

We investigate approximately optimal mechanisms in settings where bidders' utility functions are non-linear; specifically, convex, with respect to payments (such settings arise, for instance, in procurement auctions for energy). We provide…

Computer Science and Game Theory · Computer Science 2017-02-23 Amy Greenwald , Takehiro Oyakawa , Vasilis Syrgkanis

In this work, we consider how preference models in interactive recommendation systems determine the availability of content and users' opportunities for discovery. We propose an evaluation procedure based on stochastic reachability to…

Information Retrieval · Computer Science 2021-07-05 Mihaela Curmei , Sarah Dean , Benjamin Recht

Classes of set functions along with a choice of ground set are a bedrock to determine and develop corresponding variants of greedy algorithms to obtain efficient solutions for combinatorial optimization problems. The class of approximate…

Optimization and Control · Mathematics 2021-08-20 Praneeth Vepakomma , Yulia Kempner , Ramesh Raskar

In this paper we study an optimal portfolio selection problem under instantaneous price impact. Based on some empirical analysis in the literature, we model such impact as a concave function of the trading size when the trading size is…

Probability · Mathematics 2012-12-20 Jin Ma , Qingshuo Song , Jing Xu , Jianfeng Zhang

We extend Robust Optimization to fractional programming, where both the objective and the constraints contain uncertain parameters. Earlier work did not consider uncertainty in both the objective and the constraints, or did not use Robust…

Optimization and Control · Mathematics 2015-08-21 Bram L. Gorissen

Given a learning problem with real-world tradeoffs, which cost function should the model be trained to optimize? This is the metric selection problem in machine learning. Despite its practical interest, there is limited formal guidance on…

Machine Learning · Statistics 2022-08-22 Gaurush Hiranandani

We consider non-concave and non-smooth random utility functions with do- main of definition equal to the non-negative half-line. We use a dynamic pro- gramming framework together with measurable selection arguments to establish both the…

Mathematical Finance · Quantitative Finance 2016-08-29 Romain Blanchard , Laurence Carassus , Miklós Rásonyi

Applying robust optimization often requires selecting an appropriate uncertainty set both in shape and size, a choice that directly affects the trade-off between average-case and worst-case performances. In practice, this calibration is…

Optimization and Control · Mathematics 2025-08-28 Hao Hao , Peter Zhang
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