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We present a theory of backward stochastic differential equations in continuous time with an arbitrary filtered probability space. No assumptions are made regarding the left continuity of the filtration, of the predictable quadratic…

Probability · Mathematics 2012-10-15 Samuel N. Cohen , Robert J. Elliott

We discuss an open-loop backward Stackelberg differential game involving single leader and single follower. Unlike most Stackelberg game literature, the state to be controlled is characterized by a backward stochastic differential equation…

Optimization and Control · Mathematics 2021-04-06 Xinwei Feng , Ying Hu , Jianhui Huang

Motivated by earlier work on the use of fully-coupled Forward-Backward Stochastic Differential Equations (henceforth FBSDEs) in the analysis of mathematical models for the CO2 emissions markets, the present study is concerned with the…

Probability · Mathematics 2012-10-23 Rene Carmona , Francois Delarue

We study a stochastic control problem with regime switching arising in an optimal liquidation problem with dark pools and multiple regimes. The new feature of this model is that it introduces a system of BSDEs with jumps and with singular…

Mathematical Finance · Quantitative Finance 2025-01-22 Guanxing Fu , Xiaomin Shi , Zuo Quan Xu

In this Note we study a class of BSDEs which admits a particular singularity in their driver. More precisely, we assume that the driver is not integrable and degenerates when approaching to the terminal time of the equation.

Probability · Mathematics 2014-01-08 Monique Jeanblanc , Anthony Reveillac

In the first part of the paper, we study reflected backward stochastic differential equations (RBSDEs) with lower obstacle which is assumed to be right upper-semicontinuous but not necessarily right-continuous. We prove existence and…

Probability · Mathematics 2017-05-11 Miryana Grigorova , Peter Imkeller , Elias Offen , Youssef Ouknine , Marie-Claire Quenez

We study a backward stochastic differential equation whose terminal condition is an integrable function of a local martingale and generator has bounded growth in $z$. When the local martingale is a strict local martingale, the BSDE admits…

Probability · Mathematics 2011-12-13 Hao Xing

In this paper, we study the following time-dependent stochastic differential equation (SDE) in ${\bf R}^d$: $$ d X_{t}= \sigma_t(X_{t-}) d Z_t + b_t(X_{t})d t, \quad X_{0}=x\in {\bf R}^d, $$ where $Z$ is a $d$-dimensioanl nondegenerate…

Probability · Mathematics 2017-09-15 Zhen-Qing Chen , Xicheng Zhang , Guohuan Zhao

We introduce the notion of mild supersolution for an obstacle problem in an infinite dimensional Hilbert space. The minimal supersolution of this problem is given in terms of a reflected BSDEs in an infinite dimensional Markovian framework.…

Optimization and Control · Mathematics 2014-11-17 Marco Fuhrman , Federica Masiero , Gianmario Tessitore

In this paper, we study the solvability of a class of multi-dimensional forward backward stochastic differential equations (FBSDEs) with oblique reflection and unbounded stopping time. Under some mild assumptions on the coefficients in such…

Probability · Mathematics 2012-07-03 Soufiane Aazizi , Imade Fakhouri

We consider a reflected backward stochastic differential equations with default time and an optional barrier in a filtration generated by a one-dimensional Brownian motion and a defaultable process. We suppose that the barrier have…

Probability · Mathematics 2026-05-07 Badr Elmansouri , Mohamed El Otmani

Driven by diverse applications, several recent models impose randomly switching boundary conditions on either a PDE or SDE. The purpose of this paper is to provide tools for calculating statistics of these models and to establish a…

Probability · Mathematics 2020-03-13 Sean D. Lawley

This article deals with the numerical resolution of Markovian backward stochastic differential equations (BSDEs) with drivers of quadratic growth with respect to $z$ and bounded terminal conditions. We first show some bound estimates on the…

Probability · Mathematics 2012-01-10 Adrien Richou

With the terminal value $\xi^-$ admitting a certain exponential moment and $\xi^+$ admitting every exponential moments or being bounded, we establish several existence and uniqueness results for unbounded solutions of backward stochastic…

Probability · Mathematics 2024-04-08 Yan Wang , Xinying Li , Chuang Gu , Shengjun Fan

In this study, we consider a class of backward SDE driven by jump Markov process. An existence and uniqueness result to this kind of equations is obtained in a locally Lipschitz case. We essentially approximate the initial problem by…

Probability · Mathematics 2018-12-27 K. Abdelhadi , N. Khelfallah

In this paper, we propose a method for bounding the probability that a stochastic differential equation (SDE) system violates a safety specification over the infinite time horizon. SDEs are mathematical models of stochastic processes that…

Dynamical Systems · Mathematics 2020-06-04 Shenghua Feng , Mingshuai Chen , Bai Xue , Sriram Sankaranarayanan , Naijun Zhan

In this paper, we present a discrete-type approximation scheme to solve continuous-time optimal stopping problems based on fully non-Markovian continuous processes adapted to the Brownian motion filtration. The approximations satisfy…

Probability · Mathematics 2019-06-24 Dorival Leão , Alberto Ohashi , Francesco Russo

Motivated from time-inconsistent stochastic control problems, we introduce a new type of coupled forward-backward stochastic systems, namely, flows of forward-backward stochastic differential equations. They are systems consisting of a…

Probability · Mathematics 2020-04-28 Yushi Hamaguchi

We develop a theory of optimal stopping problems under G-expectation framework. We first define a new kind of random times, called G-stopping times, which is suitable for this problem. For the discrete time case with finite horizon, the…

Probability · Mathematics 2018-12-21 Hanwu Li

In this paper, we aim to study solutions of reflected generalized BSDEs, involving the integral with respect to a continuous process, which is the local time of the diffusion on the boundary. We consider both a finite random terminal and a…

Probability · Mathematics 2010-11-16 Auguste Aman , Abouo Elouaflin , Modeste N'zi