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We study existence and uniqueness of the fixed points solutions of a large class of non-linear variable discounted transfer operators associated to a sequential decision-making process. We establish regularity properties of these solutions,…

Dynamical Systems · Mathematics 2019-02-20 L. Cioletti , Elismar R. Oliveira

Policy iteration and value iteration are at the core of many (approximate) dynamic programming methods. For Markov Decision Processes with finite state and action spaces, we show that they are instances of semismooth Newton-type methods to…

Optimization and Control · Mathematics 2022-06-28 Matilde Gargiani , Andrea Zanelli , Dominic Liao-McPherson , Tyler Summers , John Lygeros

The linear programming (LP) approach has a long history in the theory of approximate dynamic programming. When it comes to computation, however, the LP approach often suffers from poor scalability. In this work, we introduce a relaxed…

Systems and Control · Electrical Eng. & Systems 2020-12-01 Andrea Martinelli , Matilde Gargiani , John Lygeros

We formulate a probabilistic Markov property in discrete time under a dynamic risk framework with minimal assumptions. This is useful for recursive solutions to risk-sensitive versions of dynamic optimisation problems such as optimal…

Optimization and Control · Mathematics 2022-09-05 Tomasz Kosmala , Randall Martyr , John Moriarty

Dynamic decisions are pivotal to economic policy making. We show how existing evidence from randomized control trials can be utilized to guide personalized decisions in challenging dynamic environments with budget and capacity constraints.…

Econometrics · Economics 2024-11-26 Karun Adusumilli , Friedrich Geiecke , Claudio Schilter

Many sequential decision problems involve optimizing one objective function while imposing constraints on other objectives. Constrained Partially Observable Markov Decision Processes (C-POMDP) model this case with transition uncertainty and…

In reinforcement learning (RL), aligning agent behavior with specific objectives typically requires careful design of the reward function, which can be challenging when the desired objectives are complex. In this work, we propose an…

Machine Learning · Computer Science 2025-09-05 Yuting Tang , Yivan Zhang , Johannes Ackermann , Yu-Jie Zhang , Soichiro Nishimori , Masashi Sugiyama

This paper build on our recent work where we presented a dual stochastic optimal control formulation of the nonlinear filtering problem [1]. The constraint for the dual problem is a backward stochastic differential equations (BSDE). The…

Optimization and Control · Mathematics 2021-11-02 Jin Won Kim , Prashant G. Mehta

We propose a new approach to solving dynamic decision problems with rewards that are unbounded below. The approach involves transforming the Bellman equation in order to convert an unbounded problem into a bounded one. The major advantage…

Theoretical Economics · Economics 2019-12-02 Qingyin Ma , John Stachurski

This paper studies the dynamic programming principle for general convex stochastic optimization problems introduced by Rockafellar and Wets in [30]. We extend the applicability of the theory by relaxing compactness and boundedness…

Optimization and Control · Mathematics 2022-04-01 Teemu Pennanen , Ari-Pekka Perkkiö

This paper investigates the integration of response time data into human preference learning frameworks for more effective reward model elicitation. While binary preference data has become fundamental in fine-tuning foundation models,…

Machine Learning · Computer Science 2025-10-29 Ayush Sawarni , Sahasrajit Sarmasarkar , Vasilis Syrgkanis

In this paper, we investigate the robust optimal reinsurance,investment,and internal surplus distribution (i.e., consumption) problem for an insurer with Epstein-Zin recursive preferences in an incomplete market. It is assumed that the…

Optimization and Control · Mathematics 2026-05-19 Junyi Guo , Jianxuan Li , Qianqian Zhou

In the classical static optimal reinsurance problem, the cost of capital for the insurer's risk exposure determined by a monetary risk measure is minimized over the class of reinsurance treaties represented by increasing Lipschitz retained…

Risk Management · Quantitative Finance 2020-12-18 Alexander Glauner

The standard Dynamic Programming (DP) formulation can be used to solve Multi-Stage Optimization Problems (MSOP's) with additively separable objective functions. In this paper we consider a larger class of MSOP's with monotonically backward…

Optimization and Control · Mathematics 2020-10-15 Morgan Jones , Matthew Peet

We present an accelerated algorithm for the solution of static Hamilton-Jacobi-Bellman equations related to optimal control problems. Our scheme is based on a classic policy iteration procedure, which is known to have superlinear…

Optimization and Control · Mathematics 2016-02-22 Alessandro Alla , Maurizio Falcone , Dante Kalise

In this paper, we consider risk-sensitive Markov Decision Processes (MDPs) with Borel state and action spaces and unbounded cost under both finite and infinite planning horizons. Our optimality criterion is based on the recursive…

Optimization and Control · Mathematics 2025-10-16 Nicole Bäuerle , Alexander Glauner

This research considers the ranking and selection with input uncertainty. The objective is to maximize the posterior probability of correctly selecting the best alternative under a fixed simulation budget, where each alternative is measured…

Optimization and Control · Mathematics 2023-05-15 Hui Xiao , Zhihong Wei

We study both the value function and Q-function formulation of the Linear Programming approach to Approximate Dynamic Programming. The approach is model-based and optimizes over a restricted function space to approximate the value function…

Systems and Control · Computer Science 2018-08-31 Paul N. Beuchat , Angelos Georghiou , John Lygeros

This paper discusses the odds problem, proposed by Bruss in 2000, and its variants. A recurrence relation called a dynamic programming (DP) equation is used to find an optimal stopping policy of the odds problem and its variants. In 2013,…

Optimization and Control · Mathematics 2021-07-29 Sachika Kurokawa , Tomomi Matsui

In this paper, we attempt to introduce the Bellman principle for a discrete time multi-period mean-variance model. Based on this new take on the Bellman principle, we obtain a dynamic time-consistent optimal strategy and related efficient…

Mathematical Finance · Quantitative Finance 2020-11-24 Shuzhen Yang