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For controlled discrete-time stochastic processes we introduce a new class of dynamic risk measures, which we call process-based. Their main features are that they measure risk of processes that are functions of the history of a base…

Optimization and Control · Mathematics 2016-11-30 Jingnan Fan , Andrzej Ruszczynski

We design scheduling policies that minimize a risk-sensitive cost criterion for a remote estimation setup. Since risk-sensitive cost objective takes into account not just the mean value of the cost, but also higher order moments of its…

Optimization and Control · Mathematics 2024-03-22 Manali Dutta , Rahul Singh

Several authors have recently developed risk-sensitive policy gradient methods that augment the standard expected cost minimization problem with a measure of variability in cost. These studies have focused on specific risk-measures, such as…

Artificial Intelligence · Computer Science 2015-06-09 Aviv Tamar , Yinlam Chow , Mohammad Ghavamzadeh , Shie Mannor

We describe theoretical bounds and a practical algorithm for teaching a model by demonstration in a sequential decision making environment. Unlike previous efforts that have optimized learners that watch a teacher demonstrate a static…

Machine Learning · Computer Science 2012-10-19 Thomas J. Walsh , Sergiu Goschin

Chance constrained program where one seeks to minimize an objective over decisions which satisfy randomly disturbed constraints with a given probability is computationally intractable. This paper proposes an approximate approach to address…

Computation · Statistics 2019-12-23 Xun Shen , Jiancang Zhuang , Xingguo Zhang

We develop a method for computing policies in Markov decision processes with risk-sensitive measures subject to temporal logic constraints. Specifically, we use a particular risk-sensitive measure from cumulative prospect theory, which has…

Artificial Intelligence · Computer Science 2020-04-21 Murat Cubuktepe , Ufuk Topcu

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

This paper formed part of a preliminary research report for a risk consultancy and academic research. Stochastic Programming models provide a powerful paradigm for decision making under uncertainty. In these models the uncertainties are…

Computational Finance · Quantitative Finance 2009-04-08 Sovan Mitra

This paper considers an opportunistic scheduling problem over a renewal system. A controller observes a random event at the beginning of each renewal frame and then chooses an action in response to the event, which affects the duration of…

Optimization and Control · Mathematics 2019-06-10 Xiaohan Wei , Michael J. Neely

Stochastic differential equations can describe a wide range of dynamical systems, and obtaining the governing equations of these systems is the premise of studying the nonlinear dynamic behavior of the system. Neural networks are currently…

Dynamical Systems · Mathematics 2023-04-25 Xiao-Kai An , Lin Du , Zi-Chen Deng , Yu-jia Zhang

This paper studies continuous-time Markov decision processes under the risk-sensitive average cost criterion. The state space is a finite set, the action space is a Borel space, the cost and transition rates are bounded, and the…

Optimization and Control · Mathematics 2015-12-22 Qingda Wei , Xian Chen

We introduce a unified probabilistic framework for solving sequential decision making problems ranging from Bayesian optimisation to contextual bandits and reinforcement learning. This is accomplished by a probabilistic model-based approach…

This paper presents a constrained policy gradient algorithm. We introduce constraints for safe learning with the following steps. First, learning is slowed down (lazy learning) so that the episodic policy change can be computed with the…

Machine Learning · Computer Science 2022-01-24 Balázs Varga , Balázs Kulcsár , Morteza Haghir Chehreghani

We study the problem of resilient strategies in the presence of uncertainty. Resilient strategies enable an agent to make decisions that are robust against disturbances. In particular, we are interested in those disturbances that are able…

Computer Science and Game Theory · Computer Science 2026-03-02 Kush Grover , Markel Zubia , Debraj Chakraborty , Muqsit Azeem , Nils Jansen , Jan Kretinsky

In this paper, we develop approximate dynamic programming methods for stochastic systems modeled as Markov Decision Processes, given both soft performance criteria and hard constraints in a class of probabilistic temporal logic called…

Optimization and Control · Mathematics 2018-10-08 Lening Li , Jie Fu

In this paper, we model dependence between operational risks by allowing risk profiles to evolve stochastically in time and to be dependent. This allows for a flexible correlation structure where the dependence between frequencies of…

Risk Management · Quantitative Finance 2009-07-31 Gareth W. Peters , Pavel V. Shevchenko , Mario V. Wüthrich

We consider chance-constrained problems with discrete random distribution. We aim for problems with a large number of scenarios. We propose a novel method based on the stochastic gradient descent method which performs updates of the…

Optimization and Control · Mathematics 2019-05-28 Lukáš Adam , Martin Branda

This paper studies the problem of risk-sensitive reinforcement learning (RSRL) in continuous time, where the environment is characterized by a controllable stochastic differential equation (SDE) and the objective is a potentially nonlinear…

Machine Learning · Computer Science 2025-12-03 Chuhan Xie

In simulations of multiscale dynamical systems, not all relevant processes can be resolved explicitly. Taking the effect of the unresolved processes into account is important, which introduces the need for paramerizations. We present a…

Numerical Analysis · Mathematics 2021-04-14 Daan Crommelin , Wouter Edeling

We consider the problem of sequentially making decisions that are rewarded by "successes" and "failures" which can be predicted through an unknown relationship that depends on a partially controllable vector of attributes for each instance.…

Machine Learning · Statistics 2017-09-18 Yingfei Wang , Chu Wang , Warren Powell