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In this paper we consider a distributed optimization scenario in which a set of agents has to solve a convex optimization problem with separable cost function, local constraint sets and a coupling inequality constraint. We propose a novel…

Systems and Control · Computer Science 2018-04-25 Ivano Notarnicola , Giuseppe Notarstefano

This paper presents a stochastic model for discrete-time trading in financial markets where trading costs are given by convex cost functions and portfolios are constrained by convex sets. The model does not assume the existence of a cash…

Pricing of Securities · Quantitative Finance 2010-06-24 Teemu Pennanen

Lagrangian relaxation is a versatile mathematical technique employed to relax constraints in an optimization problem, enabling the generation of dual bounds to prove the optimality of feasible solutions and the design of efficient…

Artificial Intelligence · Computer Science 2023-12-25 Augustin Parjadis , Quentin Cappart , Bistra Dilkina , Aaron Ferber , Louis-Martin Rousseau

It is well known that the minimal superhedging price of a contingent claim is too high for practical use. In a continuous-time model uncertainty framework, we consider a relaxed hedging criterion based on acceptable shortfall risks.…

Mathematical Finance · Quantitative Finance 2019-03-07 Ludovic Tangpi

We introduce a new class of combinatorial markets in which agents have covering constraints over resources required and are interested in delay minimization. Our market model is applicable to several settings including scheduling, cloud…

Computer Science and Game Theory · Computer Science 2017-04-17 Nikhil Devanur , Jugal Garg , Ruta Mehta , Vijay V. Vazirani , Sadra Yazdanbod

We study superhedging of contingent claims with physical delivery in a discrete-time market model with convex transaction costs. Our model extends Kabanov's currency market model by allowing for nonlinear illiquidity effects. We show that…

Pricing of Securities · Quantitative Finance 2008-12-02 Teemu Pennanen , Irina Penner

Strategic bidding problems in electricity markets are widely studied in power systems, often by formulating complex bi-level optimization problems that are hard to solve. The state-of-the-art approach to solve such problems is to…

Optimization and Control · Mathematics 2016-06-21 Mahdi Ghamkhari , Ashkan Sadeghi-Mobarakeh , Hamed Mohsenian-Rad

Reducing uplift payments has been a challenging problem for most wholesale markets in US. The main difficulty comes from the unit commitment discrete decision makings. Recently convex hull pricing has shown promises to reduce the uplift…

Systems and Control · Electrical Eng. & Systems 2019-06-20 Yanan Yu , Yongpei Guan , Yonghong Chen

The European power grid can be divided into several market areas where the price of electricity is determined in a day-ahead auction. Market participants can provide continuous hourly bid curves and combinatorial bids with associated…

Optimization and Control · Mathematics 2015-03-02 Alexander Martin , Johannes C. Müller , Sebastian Pokutta

In the past years, augmented Lagrangian methods have been successfully applied to several classes of non-convex optimization problems, inspiring new developments in both theory and practice. In this paper we bring most of these recent…

Optimization and Control · Mathematics 2023-06-27 Roberto Andreani , Kelvin Rodrigues Couto , Orizon Pereira Ferreira , Gabriel Haeser

This work considers a short-term, continuous time setting characterized by a coupled power supply system controlled exclusively by a single provider and comprising a cascade of hydropower systems (dams), fossil fuel power stations, and a…

Optimization and Control · Mathematics 2024-04-12 Chiheb Ben Hammouda , Eliza Rezvanova , Erik von Schwerin , Raúl Tempone

Modern market management systems continue to evolve due to the intentions to improve system security and reliability. This evolvement has been leading to a transition of market auction models from a deterministic structure with…

Systems and Control · Electrical Eng. & Systems 2021-02-22 Mohammad Ghaljehei , Mojdeh Khorsand

This study investigates imposing hard inequality constraints on the outputs of convolutional neural networks (CNN) during training. Several recent works showed that the theoretical and practical advantages of Lagrangian optimization over…

Computer Vision and Pattern Recognition · Computer Science 2023-08-31 Hoel Kervadec , Jose Dolz , Jing Yuan , Christian Desrosiers , Eric Granger , Ismail Ben Ayed

This paper addresses the problem of optimizing charging/discharging schedules of electric vehicles (EVs) when participate in demand response (DR). As there exist uncertainties in EVs' remaining energy, arrival and departure time, and future…

Artificial Intelligence · Computer Science 2022-09-21 Guibin. Chen , Xiaoying. Shi

Most inverse optimization models impute unspecified parameters of an objective function to make an observed solution optimal for a given optimization problem with a fixed feasible set. We propose two approaches to impute unspecified…

Optimization and Control · Mathematics 2019-07-19 Timothy C. Y. Chan , Neal Kaw

In the past couple of decades, non-quadratic convex penalties have reshaped signal processing and machine learning; in robust control, however, general convex costs break the Riccati and storage function structure that make the design…

Systems and Control · Electrical Eng. & Systems 2025-08-21 Joudi Hajar , Reza Ghane , Babak Hassibi

A multi-agent optimization problem motivated by the management of energy systems is discussed. The associated cost function is separable and convex although not necessarily strongly convex and there exist edge-based coupling equality…

Optimization and Control · Mathematics 2022-06-03 Wicak Ananduta , Angelia Nedić , Carlos Ocampo-Martinez

We consider regression problems with binary weights. Such optimization problems are ubiquitous in quantized learning models and digital communication systems. A natural approach is to optimize the corresponding Lagrangian using variants of…

Machine Learning · Computer Science 2020-12-01 Nisan Chiprut , Amir Globerson , Ami Wiesel

This paper proposes a convex non-linear cost saving model for optimal economic dispatch in a microgrid. The mod-el incorporates energy storage degradation cost and intermittent renewable generation. Cell degradation cost being a non-linear…

Signal Processing · Electrical Eng. & Systems 2018-04-17 Vikram Bhattacharjee , Irfan Khan

Dual decomposition approaches in nonconvex optimization may suffer from a duality gap. This poses a challenge when applying them directly to nonconvex problems such as MAP-inference in a Markov random field (MRF) with continuous state…

Optimization and Control · Mathematics 2022-05-17 Hartmut Bauermeister , Emanuel Laude , Thomas Möllenhoff , Michael Moeller , Daniel Cremers
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