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This paper presents a new framework for Merton's optimal investment problem which uses the theory of Meyer $\sigma$-fields to allow for signals that possibly warn the investor about impending jumps. With strategies no longer predictable,…

Optimization and Control · Mathematics 2022-06-17 Peter Bank , Laura Körber

We study a regulation problem for stochastic systems subject to both continuous fluctuations and rare but significant shocks, modeled as a jump-diffusion with uncertainty in both the drift and the jump intensity. Such settings arise in…

Optimization and Control · Mathematics 2026-05-26 Abel Azze , Bernardo D'Auria , Giorgio Ferrari

In this paper, we investigate a mean-field singular stochastic optimal control problem for systems governed by mean-field regime-switching singular stochastic differential equations. The state process is assumed to depend on both a regular…

Optimization and Control · Mathematics 2025-12-01 Maalvladédon Ganet Somé , Edward Korveh

Stochastic optimal control problems have a long tradition in applied probability, with the questions addressed being of high relevance in a multitude of fields. Even though theoretical solutions are well understood in many scenarios, their…

Statistics Theory · Mathematics 2024-05-28 Sören Christensen , Claudia Strauch , Lukas Trottner

In this paper we prove a necessary condition of the optimal control problem for a class of general mean-field forward-backward stochastic systems with jumps in the case where the diffusion coefficients depend on control, the control set…

Optimization and Control · Mathematics 2019-02-20 Tao Hao , Qingxin Meng

This article is concerned with stochastic control problems for backward doubly stochastic differential equations of mean-field type, where the coefficient functions depend on the joint distribution of the state process and the control…

Probability · Mathematics 2022-05-26 Jian Song , Meng Wang

We study a stochastic optimal control problem for jump-diffusion systems whose drift coefficient is piecewise Lipschitz continuous and exhibits threshold-induced discontinuities. Such dynamics naturally arise in applications with…

Optimization and Control · Mathematics 2026-05-08 Antoine-Marie Bogso , Edward Fuituh Kameh , Olivier Menoukeu-Pamen , Felix Shu

In this paper, we establish a general stochastic maximum principle for optimal control for systems described by a continuous-time Markov regime-switching stochastic recursive utilities model. The control domain is postulated not to be…

Optimization and Control · Mathematics 2019-05-02 Liangquan Zhang , Xun Li

A mean-field selective optimal control problem of multipopulation dynamics via transient leadership is considered. The agents in the system are described by their spatial position and their probability of belonging to a certain population.…

Optimization and Control · Mathematics 2021-06-15 Giacomo Albi , Stefano Almi , Marco Morandotti , Francesco Solombrino

Mathematical programming formulations of influence diagrams can bridge the gap between representing and solving decision problems. However, they suffer from both modeling and computational limitations. Aiming to address modeling…

Optimization and Control · Mathematics 2025-06-19 Olli Herrala , Tommi Ekholm , Fabricio Oliveira

We consider a two-sided singular stochastic control problem with a risk-sensitive ergodic criterion. In particular, we consider a stochastic system whose uncontrolled dynamics are modelled by a linear diffusion. The control that can be…

Optimization and Control · Mathematics 2025-09-15 Justin Gwee , Mihail Zervos

In this paper, we study an optimal control problem of a mean-field forward-backward stochastic system with random jumps in progressive structure, where both regular and singular controls are considered in our formula. In virtue of the…

Optimization and Control · Mathematics 2023-05-30 Tian Chen , Kai Du , Zongyuan Huang , Zhen Wu

We study an optimal investment problem under default risk where related information such as loss or recovery at default is considered as an exogenous random mark added at default time. Two types of agents who have different levels of…

Pricing of Securities · Quantitative Finance 2017-03-02 Ying Jiao , Idris Kharroubi

In this paper, we obtain the maximum principle for optimal controls of stochastic systems with jumps by introducing a new method of variation. The control is allowed to enter both diffusion and jump term and the control domain need not to…

Optimization and Control · Mathematics 2019-10-10 Yuanzhuo Song , Shanjian Tang , Zhen Wu

In this paper we study mean-field type control problems with risk-sensitive performance functionals. We establish a stochastic maximum principle (SMP) for optimal control of stochastic differential equations (SDEs) of mean-field type, in…

Optimization and Control · Mathematics 2014-04-08 Boualem Djehiche , Hamidou Tembine , Raul Tempone

We study the optimal control problem for a weighted mean-field system. A new feature of the control problem is that the coefficients depend on the state process as well as its weighted measure and the control variable. By applying…

Optimization and Control · Mathematics 2022-08-25 Yanyan Tang , Jie Xiong

Tipping points characterize situations where a regulated system may experience a sudden and irreversible change and are generally associated with a random state of the system below which the change materializes. In this paper, we study a…

Optimization and Control · Mathematics 2026-02-25 Jean-Paul Décamps , Fabien Gensbittel , Thomas Mariotti , Stéphane Villeneuve

We model continuous-time information flows generated by a number of information sources that switch on and off at random times. By modulating a multi-dimensional L\'evy random bridge over a random point field, our framework relates the…

Probability · Mathematics 2020-05-14 Edward Hoyle , Andrea Macrina , Levent A. Mengütürk

In this paper, we consider the stochastic optimal control problem for the interacting particle system. We obtain the stochastic maximum principle of the optimal control system by introducing a generalized backward stochastic differential…

Probability · Mathematics 2025-05-14 Andrey A. Dorogovtsev , Yuecai Han , Kateryna Hlyniana , Yuhang Li

We consider extended mean-field control problems with multi-dimensional singular controls. A key challenge when analysing singular controls are jump costs. When controls are one-dimensional, jump costs are most naturally computed by linear…

Mathematical Finance · Quantitative Finance 2025-09-16 Robert Denkert , Ulrich Horst
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