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In this paper we study a robust expected utility maximization problem with random endowment in discrete time. We give conditions under which an optimal strategy exists and derive a dual representation for the optimal utility. Our approach…

Portfolio Management · Quantitative Finance 2019-02-12 Daniel Bartl , Patrick Cheridito , Michael Kupper

Building on a recent framework for distributionally robust optimization, we consider estimation of the inverse covariance matrix for multivariate data. We provide a novel notion of a Wasserstein ambiguity set specifically tailored to this…

Machine Learning · Statistics 2019-10-08 Pedro Cisneros-Velarde , Sang-Yun Oh , Alexander Petersen

In recent years, two prominent paradigms have shaped distributionally robust optimization (DRO), modeling distributional ambiguity through $\phi$-divergences and Wasserstein distances, respectively. While the former focuses on ambiguity in…

Optimization and Control · Mathematics 2025-12-22 Jose Blanchet , Daniel Kuhn , Jiajin Li , Bahar Taskesen

In light of a reliable and resilient power system under extreme weather and natural disasters, networked microgrids integrating local renewable resources have been adopted extensively to supply demands when the main utility experiences…

Systems and Control · Electrical Eng. & Systems 2022-02-09 Yifu Ding , Thomas Morstyn , Malcolm D. McCulloch

We propose a distributionally robust formulation of the traditional risk parity portfolio optimization problem. Distributional robustness is introduced by targeting the discrete probabilities attached to each observation used during…

Optimization and Control · Mathematics 2021-10-14 Giorgio Costa , Roy H. Kwon

We present a novel $Q$-learning algorithm tailored to solve distributionally robust Markov decision problems where the corresponding ambiguity set of transition probabilities for the underlying Markov decision process is a Wasserstein ball…

Machine Learning · Computer Science 2024-06-21 Ariel Neufeld , Julian Sester

High penetrations of intermittent renewable energy resources in the power system require large balancing reserves for reliable operations. Aggregated and coordinated behind-the-meter loads can provide these fast reserves, but represent…

Optimization and Control · Mathematics 2019-10-03 Mahraz Amini , Mads Almassalkhi

The deepening penetration of renewable energy is challenging how power system operators cope with the associated variability and uncertainty in the unit commitment problem. Given its computational complexity, several optimization-based…

Systems and Control · Electrical Eng. & Systems 2022-08-26 Mohamed Awadalla , François Bouffard

We consider a distributionally robust formulation of stochastic optimization problems arising in statistical learning, where robustness is with respect to uncertainty in the underlying data distribution. Our formulation builds on…

Optimization and Control · Mathematics 2021-06-09 Mert Gürbüzbalaban , Andrzej Ruszczyński , Landi Zhu

Optimization problems with uncertain black-box constraints, modeled by warped Gaussian processes, have recently been considered in the Bayesian optimization setting. This work introduces a new class of constraints in which the same…

Optimization and Control · Mathematics 2020-06-16 Johannes Wiebe , Inês Cecílio , Jonathan Dunlop , Ruth Misener

Decentralized energy management is of paramount importance in smart microgrids with renewables for various reasons including environmental friendliness, reduced communication overhead, and resilience to failures. In this context, the…

Optimization and Control · Mathematics 2014-01-24 Yu Zhang , Georgios B. Giannakis

With the rising adoption of distributed energy resources (DERs), microgrid dispatch is facing new challenges: DER owners are independent stakeholders seeking to maximize their individual profits rather than being controlled centrally; and…

Optimization and Control · Mathematics 2025-01-27 Meng Yang , Rui Xie , Yongjun Zhang , Yue Chen

Voltage control plays an important role in the operation of electricity distribution networks, especially with high penetration of distributed energy resources. These resources introduce significant and fast varying uncertainties. In this…

Optimization and Control · Mathematics 2018-11-07 Pan Li , Baihong Jin , Dai Wang , Baosen Zhang

By employing local renewable energy sources and power generation units while connected to the central grid, microgrid can usher in great benefits in terms of cost efficiency, power reliability, and environmental awareness. Economic…

Systems and Control · Computer Science 2015-10-01 Ying Zhang , Mohammad H. Hajiesmaili , Sinan Cai , Minghua Chen , Qi Zhu

We study the problem of Distributionally Robust Constrained RL (DRC-RL), where the goal is to maximize the expected reward subject to environmental distribution shifts and constraints. This setting captures situations where training and…

Machine Learning · Computer Science 2024-06-25 Zhengfei Zhang , Kishan Panaganti , Laixi Shi , Yanan Sui , Adam Wierman , Yisong Yue

The Wasserstein distance has emerged as a key metric to quantify distances between probability distributions, with applications in various fields, including machine learning, control theory, decision theory, and biological systems.…

Machine Learning · Computer Science 2026-02-10 Eduardo Figueiredo , Steven Adams , Luca Laurenti

Integrating Distributed Energy Resources (DERs) with peer-to-peer (P2P) energy trading offers promising solutions for grid modernization by incentivizing prosumers to participate in mitigating peak demand. However, this integration also…

Optimization and Control · Mathematics 2025-07-18 Amir Noori , Babak Tavassoli , Alireza Fereidunian

We revisit Markowitz's mean-variance portfolio selection model by considering a distributionally robust version, where the region of distributional uncertainty is around the empirical measure and the discrepancy between probability measures…

Methodology · Statistics 2018-02-15 Jose Blanchet , Lin Chen , Xun Yu Zhou

Chance constrained optimal power flow (OPF) has been recognized as a promising framework to manage the risk from variable renewable energy (VRE). In presence of VRE uncertainties, this paper discusses a distributionally robust chance…

Optimization and Control · Mathematics 2018-05-01 Chao Duan , Wanliang Fang , Lin Jiang , Li Yao , Jun Liu

We study optimal transport-based distributionally robust optimization problems where a fictitious adversary, often envisioned as nature, can choose the distribution of the uncertain problem parameters by reshaping a prescribed reference…

Optimization and Control · Mathematics 2025-10-16 Soroosh Shafiee , Liviu Aolaritei , Florian Dörfler , Daniel Kuhn
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