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This paper addresses the portfolio selection problem for nonlinear law-dependent preferences in continuous time, which inherently exhibit time inconsistency. Employing the method of stochastic maximum principle, we establish verification…

Mathematical Finance · Quantitative Finance 2023-11-15 Zongxia Liang , Jianming Xia , Fengyi Yuan

The objective of the present paper is to investigate the solution of fully coupled mean-field forward-backward stochastic differential equations (FBSDEs in short) and to study the stochastic control problems of mean-field type as well as…

Optimization and Control · Mathematics 2012-07-19 Ruimin Xu , Liangquan Zhang

The aim of this paper is to investigate the existence of optimal controls for systems described by stochastic partial differential equations (SPDEs) with locally monotone coefficients controlled by different external forces which are…

Optimization and Control · Mathematics 2017-09-29 Edson A. Coayla-Teran , Paulo M. Dias de Magalhães , Jorge Ferreira

We study a class of stochastic evolution equations of jump type with random coefficients and its optimal control problem. There are three major ingredients. The first is to prove the existence and uniqueness of the solutions by continuous…

Optimization and Control · Mathematics 2016-10-18 Maoning Tang , Qingxin Meng

In this paper, we consider stochastic optimal control of systems driven by stochastic differential equations with irregular drift coefficient. We establish a necessary and sufficient stochastic maximum principle. To achieve this, we first…

Optimization and Control · Mathematics 2021-01-18 Olivier Menoukeu-Pamen , Ludovic Tangpi

In this paper, we design a controller for an interconnected system composed of a linear Stochastic Differential Equation (SDE) controlled through a linear hetero-directional hyperbolic Partial Differential Equation (PDE). Our objective is…

Optimization and Control · Mathematics 2025-02-19 Gabriel Velho , Jean Auriol , Islam Boussaada , Riccardo Bonalli

We provide sufficient conditions for the continuity of the free-boundary in a general class of finite-horizon optimal stopping problems arising for instance in finance and economics. The underlying process is a strong solution of one…

Optimization and Control · Mathematics 2013-05-07 Tiziano De Angelis

The aim of this paper is to derive a maximum principle for a control problem governed by a stochastic partial differential equation (SPDE) with locally monotone coefficients. In particular, necessary conditions for optimality for this…

Optimization and Control · Mathematics 2019-10-11 Edson Alberto Coayla-Teran

This paper develops a hierarchical games-in-games control architecture for hybrid stochastic systems governed by regime-switching jump-diffusions. We model the interplay between continuous state dynamics and discrete mode transitions as a…

Systems and Control · Electrical Eng. & Systems 2025-12-23 Yunian Pan , Quanyan Zhu

The classical mean-variance portfolio selection problem induces time-inconsistent (precommited) strategies (see Zhou and Li (2000)). To overcome this time-inconsistency, Basak and Chabakauri (2010) introduce the game theoretical approach…

Mathematical Finance · Quantitative Finance 2023-05-26 Mengge Li , Shuaijie Qian , Chao Zhou

Neural operators have demonstrated promise in modeling and controlling systems governed by Partial Differential Equations (PDEs). Beyond PDEs, Stochastic Partial Differential Equations (SPDEs) play a critical role in modeling systems…

Systems and Control · Electrical Eng. & Systems 2025-05-16 Peiyan Hu , Haodong Feng , Yue Wang , Zhiming Ma

We consider an optimal control problem for piecewise deterministic Markov processes (PDMPs) on a bounded state space. The control problem under study is very general: a pair of controls acts continuously on the deterministic flow and on the…

Optimization and Control · Mathematics 2018-02-14 Elena Bandini

We propose algorithms for solving high-dimensional Partial Differential Equations (PDEs) that combine a probabilistic interpretation of PDEs, through Feynman-Kac representation, with sparse interpolation. Monte-Carlo methods and…

Numerical Analysis · Mathematics 2022-03-25 Marie Billaud-Friess , Arthur Macherey , Anthony Nouy , Clémentine Prieur

In this paper, we investigate periodic solutions of regime-switching jump diffusions. We first show the well-posedness of solutions to the SDEs corresponding to the hybrid system. Then, we derive the strong Feller property and…

Probability · Mathematics 2020-10-06 Xiao-Xia Guo , Wei Sun

Stochastic maximum principle of nonlinear controlled forward-backward systems, where the set of strict (classical) controls need not be convex and the diffusion coefficient depends explicitly on the variable control, is an open problem…

Probability · Mathematics 2008-12-20 Seid Bahlali

In this paper we consider the problem of viscosity solution of integro-partial differential equation(IPDE in short) via the solution of backward stochastic differential equations(BSDE in short) with jumps where L\'evy's measure is not…

Probability · Mathematics 2018-09-11 Lamine Sylla

Dynamical system models with delayed dynamics and small noise arise in a variety of applications in science and engineering. In many applications, stable equilibrium or periodic behavior is critical to a well functioning system. Sufficient…

Probability · Mathematics 2017-10-27 David Lipshutz

We consider the control of semilinear stochastic partial differential equations (SPDEs) via deterministic controls. In the case of multiplicative noise, existence of optimal controls and necessary conditions for optimality are derived. In…

Optimization and Control · Mathematics 2021-10-28 Wilhelm Stannat , Lukas Wessels

This paper considers optimal control of dynamical systems which are represented by nonlinear stochastic differential equations. It is well-known that the optimal control policy for this problem can be obtained as a function of a value…

Robotics · Computer Science 2014-05-30 Oktay Arslan , Evangelos Theodorou , Panagiotis Tsiotras

We study a time-inconsistent singular stochastic control problem for a general one-dimensional diffusion, where time-inconsistency arises from a non-exponential discount function. To address this, we adopt a game-theoretic framework and…

Optimization and Control · Mathematics 2025-07-08 Andi Bodnariu , Kristoffer Lindensjö , Neofytos Rodosthenous