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Related papers: The Duration of Optimal Stopping Problems

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We present a methodology for obtaining explicit solutions to infinite time horizon optimal stopping problems involving general, one-dimensional, It\^o diffusions, payoff functions that need not be smooth and state-dependent discounting.…

Computational Finance · Quantitative Finance 2012-10-10 Timothy C. Johnson

We consider a model where an agent has a repeated decision to make and wishes to maximize their total payoff. Payoffs are influenced by an action taken by the agent, but also an unknown state of the world that evolves over time. Before…

Computer Science and Game Theory · Computer Science 2021-01-20 Nicole Immorlica , Ian Kash , Brendan Lucier

According to conventional wisdom, ambiguity accelerates optimal timing by decreasing the value of waiting in comparison with the unambiguous benchmark case. We study this mechanism in a multidimensional setting and show that in a…

Mathematical Finance · Quantitative Finance 2019-05-15 Sören Christensen , Luis H. R. Alvarez E

We consider stopping problems in which a decision maker (DM) faces an unknown state of nature and decides sequentially whether to stop and take an irreversible action; pay a fee and obtain additional information; or wait without acquiring…

Theoretical Economics · Economics 2022-05-16 Ehud Lehrer , Tao Wang

We consider an optimal stopping problem where a constraint is placed on the distribution of the stopping time. Reformulating the problem in terms of so-called measure-valued martingales allows us to transform the marginal constraint into an…

Optimization and Control · Mathematics 2017-03-27 Sigrid Källblad

In this paper, we consider a class of stochastic impulse control problem when there is a fixed delay $\Delta$ between the decision and execution times. The dynamics of the controlled system between two impulses is an arbitrary adapted…

Probability · Mathematics 2026-01-23 Said Hamadène , Ibtissam Hdhiri

We consider a variant of the classical Secretary Problem. In this setting, the candidates are ranked according to some exchangeable random variable and the quest is to maximize the expected quality of the chosen aspirant. We find an upper…

Probability · Mathematics 2017-09-15 Pablo Blanc , Juan Pablo Borthagaray , Daniel Kohen , Martín Mereb

The classical secretary problem has been generalized over the years into several directions. In this paper we confine our interest to those generalizations which have to do with the more general problem of stopping on a last observation of…

Performance · Computer Science 2017-05-29 Guy Louchard

The aim of this work is to make a survey on recent sufficient optimality conditions for optimal control problems with time delays in both state and control variables. The results are obtained by transforming delayed optimal control problems…

Optimization and Control · Mathematics 2020-08-10 Ana P. Lemos-Paiao , Cristiana J. Silva , Delfim F. M. Torres

Three notions of random stopping times exist in the literature. We introduce two concepts of equivalence of random stopping times, motivated by optimal stopping problems and stopping games respectively. We prove that these two concepts…

Probability · Mathematics 2012-11-27 Eilon Solan , Boris Tsirelson , Nicolas Vieille

In this paper we consider a method of solving optimal stopping problems in discrete and continuous time based on their dual representation. A novel and generic simulation-based optimization algorithm not involving nested simulations is…

Probability · Mathematics 2013-09-10 Denis Belomestny

In this paper, we consider multistopping problems for finite discrete time sequences $X_1,...,X_n$. $m$-stops are allowed and the aim is to maximize the expected value of the best of these $m$ stops. The random variables are neither assumed…

Probability · Mathematics 2012-01-04 Andreas Faller , Ludger Rüschendorf

We model learning in a continuous-time Brownian setting where there is prior ambiguity. The associated model of preference values robustness and is time-consistent. It is applied to study optimal learning when the choice between actions can…

Economics · Quantitative Finance 2019-03-06 Larry G. Epstein , Shaolin Ji

We consider optimal stopping problems for a Brownian motion and a geometric Brownian motion with a "disorder", assuming that the moment of a disorder is uniformly distributed on a finite interval. Optimal stopping rules are found as the…

Statistics Theory · Mathematics 2012-12-18 A. N. Shiryaev , M. V. Zhitlukhin

We analyze an optimal stopping problem with random maturity under a nonlinear expectation with respect to a weakly compact set of mutually singular probabilities $\mathcal{P}$. The maturity is specified as the hitting time to level $0$ of…

Probability · Mathematics 2016-07-08 Erhan Bayraktar , Song Yao

Imagine a large firm with multiple departments that plans a large recruitment. Candidates arrive one-by-one, and for each candidate the firm decides, based on her data (CV, skills, experience, etc), whether to summon her for an interview.…

Machine Learning · Computer Science 2019-06-03 Alon Cohen , Avinatan Hassidim , Haim Kaplan , Yishay Mansour , Shay Moran

In this paper, we investigate dynamic optimization problems featuring both stochastic control and optimal stopping in a finite time horizon. The paper aims to develop new methodologies, which are significantly different from those of mixed…

Portfolio Management · Quantitative Finance 2014-06-27 Xiongfei Jian , Xun Li , Fahuai Yi

A key part of any evolutionary algorithm is fitness evaluation. When fitness evaluations are corrupted by noise, as happens in many real-world problems as a consequence of various types of uncertainty, a strategy is needed in order to cope…

Neural and Evolutionary Computing · Computer Science 2017-07-13 Simon M. Lucas , Jialin Liu , Diego Pérez-Liébana

We use martingale and stochastic analysis techniques to study a continuous-time optimal stopping problem, in which the decision maker uses a dynamic convex risk measure to evaluate future rewards. We also find a saddle point for an…

Probability · Mathematics 2009-11-23 Erhan Bayraktar , Ioannis Karatzas , Song Yao

We develop an approach for solving one-sided optimal stopping problems in discrete time for general underlying Markov processes on the real line. The main idea is to transform the problem into an auxiliary problem for the ladder height…

Probability · Mathematics 2018-10-29 Sören Christensen , Albrecht Irle