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Convertible bonds give rise to the so-called free boundary; i.e., an unknown boundary between continuation and conversion regions of the bond. The characteristic feature of such a bond, with an extra call feature, is that the free boundary…

Analysis of PDEs · Mathematics 2013-04-10 Sadna Sajadini

The parabolic obstacle problem for the fractional Laplacian naturally arises in American option models when the assets prices are driven by pure jump L\'evy processes. In this paper we study the regularity of the free boundary. Our main…

Analysis of PDEs · Mathematics 2016-05-03 Begoña Barrios , Alessio Figalli , Xavier Ros-Oton

The aim of this paper is first to give necessary and sufficient condition of existence (of free boundaries) for both Laplacian and bi-Laplacian operators in the case where the overdetermined condition is not constant. second, by using some…

Analysis of PDEs · Mathematics 2023-04-11 Mohammed Barkatou

In this paper we study a free boundary problem for the growth of multi-layer tumors in necrotic phase. The tumor region is strip-like and divided into necrotic region and proliferating region with two free boundaries. The upper free…

Analysis of PDEs · Mathematics 2019-09-04 Junde Wu

We consider an inventory system in which inventory level fluctuates as a Brownian motion in the absence of control. The inventory continuously accumulates cost at a rate that is a general convex function of the inventory level, which can be…

Optimization and Control · Mathematics 2014-01-21 Jim Dai , Dacheng Yao

In this paper we focus the attention on free boundary problems ruled by partial differential equations with nonstandard growth, presenting in particular some recent results. The interest in these problems stems from the diverse applications…

Analysis of PDEs · Mathematics 2026-03-17 Fausto Ferrari , Monica Jacob , Claudia Lederman

We study a multiplicative transient price impact model for an illiquid financial market, where trading causes price impact which is multiplicative in relation to the current price, transient over time with finite rate of resilience, and…

Optimization and Control · Mathematics 2019-06-27 Dirk Becherer , Todor Bilarev , Peter Frentrup

We reconsider the problem of optimal trading in the presence of linear and quadratic costs, for arbitrary linear costs but in the limit where quadratic costs are small. Using matched asymptotic expansion techniques, we find that the trading…

Trading and Market Microstructure · Quantitative Finance 2016-11-15 A. Rej , R. Benichou , J. de Lataillade , G. Zérah , J. -Ph. Bouchaud

In this paper, we introduce the notion of variational free boundary problem. Namely, we say that a free boundary problem is variational if its solutions can be characterized as the critical points of some shape functional. Moreover, we…

Analysis of PDEs · Mathematics 2021-09-28 Lorenzo Cavallina

We study a control problem where the state equation is a nonlinear partial differential equation of the calculus of variation in a bounded domain, perturbed by noise. We allow the control to act on the boundary and set stochastic boundary…

Probability · Mathematics 2025-11-26 Stefano Bonaccorsi , Adrian Zalinescu

In this paper, we introduce a modification of the free boundary problem related to optimal stopping problems for diffusion processes. This modification allows the application of this PDE method in cases where the usual regularity…

Probability · Mathematics 2008-12-18 Ludger Rüschendorf , Mikhail A. Urusov

This brief note addresses the free boundary problem arising from the steady two-dimensional seepage flow through a rectangular dam. The flow problem consists in finding the free boundary location, and the velocity and pressure fields. The…

Fluid Dynamics · Physics 2015-07-21 Carmine Di Nucci

We study obstacle problems governed by two distinct types of diffusion operators involving interacting free boundaries. We obtain a somewhat surprising coupling property, leading to a comprehensive analysis of the free boundary. More…

Analysis of PDEs · Mathematics 2025-02-07 Damião J. Araújo , Rafayel Teymurazyan

We consider derivatives written on multiple underlyings in a one-period financial market, and we are interested in the computation of model-free upper and lower bounds for their arbitrage-free prices. We work in a completely realistic…

Optimization and Control · Mathematics 2022-01-13 Ariel Neufeld , Antonis Papapantoleon , Qikun Xiang

We study transmission problems with free interfaces from one random medium to another. Solutions are required to solve distinct partial differential equations, $\mbox{L}_{+}$ and $\mbox{L}_{-}$, within their positive and negative sets…

Analysis of PDEs · Mathematics 2015-10-14 Marcelo Amaral , Eduardo V. Teixeira

In this paper, we investigate dynamic optimization problems featuring both stochastic control and optimal stopping in a finite time horizon. The paper aims to develop new methodologies, which are significantly different from those of mixed…

Portfolio Management · Quantitative Finance 2014-06-27 Xiongfei Jian , Xun Li , Fahuai Yi

In this work, we investigate the continuity of the free boundary in a class of elliptic problems, with Neuman boundary condition. The main idea is a change of variable that allows us to reduce the problem to the one studied in [14].

Analysis of PDEs · Mathematics 2019-01-04 Abdeslem Lyaghfouri , Abderachid Saadi

A mutualist model with nonlocal diffusions and a free boundary is first considered. We prove that this problem has a unique solution defined $t\ge0$, and its dynamics are governed by a spreading-vanishing dichotomy. Some criteria for…

Analysis of PDEs · Mathematics 2021-10-28 Lei Li , Mingxin Wang

Model-free algorithms are brought into the control system's research with the emergence of reinforcement learning algorithms. However, there are two practical challenges of reinforcement learning-based methods. First, learning by…

Systems and Control · Electrical Eng. & Systems 2024-09-18 Mi Zhou , Erik Verriest , Chaouki Abdallah

In this paper we deal with a free boundary problem modeling the growth of nonnecrotic tumors.The tumor is treated as an incompressible fluid, the tissue elasticity is neglected and no chemical inhibitor species are present. We re-express…

Analysis of PDEs · Mathematics 2010-03-08 Joachim Escher , Anca-Voichita Matioc