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We present a variation of the well-known binomial model of asset prices. This variation incorporates a bound to short-selling, inspired by a model from Gunduz Caginalp[2]. We formalize this model and prove a formula for all the moments of…

Mathematical Finance · Quantitative Finance 2025-05-27 Nahuel I. Arca

Submodular maximization has been widely studied over the past decades, mostly because of its numerous applications in real-world problems. It is well known that the standard greedy algorithm guarantees a worst-case approximation factor of…

Data Structures and Algorithms · Computer Science 2020-02-12 Alfredo Torrico , Mohit Singh , Sebastian Pokutta

This paper builds a rule for decisionmaking from the physical behavior of single neurons, the well established neural circuitry of mutual inhibition, and the evolutionary principle of natural selection. No axioms are used in the derivation…

Theoretical Economics · Economics 2023-02-21 Valdes Salvador , Gonzalo ValdesEdwards

A major goal in Algorithmic Game Theory is to justify equilibrium concepts from an algorithmic and complexity perspective. One appealing approach is to identify natural distributed algorithms that converge quickly to an equilibrium. This…

Computer Science and Game Theory · Computer Science 2018-06-14 Yun Kuen Cheung , Richard Cole , Yixin Tao

Modeling univariate block maxima by the generalized extreme value distribution constitutes one of the most widely applied approaches in extreme value statistics. It has recently been found that, for an underlying stationary time series,…

Statistics Theory · Mathematics 2021-11-01 Axel Bücher , Leandra Zanger

Peng (2008)(\cite{P08b}) proved the Central Limit Theorem under a sublinear expectation: \textit{Let $(X_i)_{i\ge 1}$ be a sequence of i.i.d random variables under a sublinear expectation $\hat{\mathbf{E}}$ with…

Probability · Mathematics 2017-11-16 Yongsheng Song

Choosing the optimization algorithm that performs best on a given machine learning problem is often delicate, and there is no guarantee that current state-of-the-art algorithms will perform well across all tasks. Consequently, the more…

Optimization and Control · Mathematics 2024-06-25 Måns Williamson , Monika Eisenmann , Tony Stillfjord

We propose a method to improve the efficiency and accuracy of amortized Bayesian inference by leveraging universal symmetries in the joint probabilistic model of parameters and data. In a nutshell, we invert Bayes' theorem and estimate the…

Machine Learning · Computer Science 2024-07-24 Marvin Schmitt , Desi R. Ivanova , Daniel Habermann , Ullrich Köthe , Paul-Christian Bürkner , Stefan T. Radev

We consider the problem of optimizing the expected logarithmic utility of the value of a portfolio in a binomial model with proportional transaction costs with a long time horizon. By duality methods, we can find expressions for the…

Portfolio Management · Quantitative Finance 2012-09-25 Christian Bayer , Bezirgen Veliyev

The close-limit method has given approximations in excellent agreement with those of numerical relativity for collisions of equal mass black holes. We consider here colliding holes with unequal mass, for which numerical relativity results…

General Relativity and Quantum Cosmology · Physics 2009-10-28 Zeferino Andrade , Richard Price

We consider a discrete-time bipartite matching model with random arrivals of units of supply and demand that can wait in queues located at the nodes in the network. A control policy determines which are matched at each time. The focus is on…

Discrete Mathematics · Computer Science 2016-06-28 Ana Bušić , Sean Meyn

In an observed generalized semi-Markov regime, estimation of transition rate of regime switching leads towards calculation of locally risk minimizing option price. Despite the uniform convergence of estimated step function of transition…

Pricing of Securities · Quantitative Finance 2016-09-27 Anindya Goswami , Sanket Nandan

Computing the rate-distortion function for continuous sources is commonly regarded as a standard continuous optimization problem. When numerically addressing this problem, a typical approach involves discretizing the source space and…

Information Theory · Computer Science 2024-05-02 Lingyi Chen , Shitong Wu , Wenyi Zhang , Huihui Wu , Hao Wu

Given the discrete-time sequence of nonnegative random variables, general dependencies between the exponential convergence of the expectations, exponential convergence of the trajectories and the logarithmic growth of the corresponding…

Probability · Mathematics 2024-08-06 Dawid Tarłowski

In this work we are interested in general linear inverse problems where the corresponding forward problem is solved iteratively using fixed point methods. Then one-shot methods, which iterate at the same time on the forward problem solution…

Numerical Analysis · Mathematics 2024-05-15 Marcella Bonazzoli , Houssem Haddar , Tuan Anh Vu

Counterexamples to some old-standing optimization problems in the smooth convex coercive setting are provided. We show that block-coordinate, steepest descent with exact search or Bregman descent methods do not generally converge. Other…

Optimization and Control · Mathematics 2020-01-30 Jerome Bolte , Edouard Pauwels

Submodular maximization is a classic algorithmic problem with multiple applications in data mining and machine learning; there, the growing need to deal with massive instances motivates the design of algorithms balancing the quality of the…

Data Structures and Algorithms · Computer Science 2024-02-20 Georgios Amanatidis , Federico Fusco , Philip Lazos , Stefano Leonardi , Alberto Marchetti Spaccamela , Rebecca Reiffenhäuser

We empirically investigate the (negative) expected accuracy as an alternative loss function to cross entropy (negative log likelihood) for classification tasks. Coupled with softmax activation, it has small derivatives over most of its…

Machine Learning · Computer Science 2019-05-03 Ozan İrsoy

This note studies the behavior of an index I_t which is assumed to be a tradable security, to satisfy the BSM model dI_t/I_t = \mu dt + \sigma dW_t, and to be efficient in the following sense: we do not expect a prespecified trading…

General Finance · Quantitative Finance 2011-09-13 Vladimir Vovk

We consider assortment optimization over a continuous spectrum of products represented by the unit interval, where the seller's problem consists of determining the optimal subset of products to offer to potential customers. To describe the…

Machine Learning · Statistics 2021-04-15 Yannik Peeters , Arnoud V. den Boer , Michel Mandjes
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