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We consider a fractional version of the Heston volatility model which is inspired by [16]. Within this model we treat portfolio optimization problems for power utility functions. Using a suitable representation of the fractional part,…

Portfolio Management · Quantitative Finance 2019-05-17 Nicole Bäuerle , Sascha Desmettre

We study a stochastic control system involving both a standard and a fractional Brownian motion with Hurst parameter less than 1/2. We apply an anticipative Girsanov transformation to transform the system into another one, driven only by…

Optimization and Control · Mathematics 2016-05-06 Rainer Buckdahn , Shuai Jing

In this paper we formulate and solve an optimal problem for Stochastic process with a regime absorbing state. The solution for this problem is obtained through a system of partial differential equations. The method is applied to obtain an…

Optimization and Control · Mathematics 2023-05-03 yaacov Kopeliovich

Frequency control rebalances supply and demand while maintaining the network state within operational margins. It is implemented using fast ramping reserves that are expensive and wasteful, and which are expected to grow with the increasing…

Optimization and Control · Mathematics 2015-11-19 Enrique Mallada , Changhong Zhao , Steven H. Low

We consider the problem of utility maximization for small traders on incomplete financial markets. As opposed to most of the papers dealing with this subject, the investors' trading strategies we allow underly constraints described by…

Probability · Mathematics 2008-12-10 Ying Hu , Peter Imkeller , Matthias Muller

The minimization of energy-like cost functionals is addressed in the context of optimal control problems. For a general class of dynamical systems, with possibly unstable and nonlinear free dynamics, it is shown that a sequence of solutions…

Optimization and Control · Mathematics 2022-12-06 Sérgio S. Rodrigues

We discuss the multilevel control problem for linear dynamical systems, consisting in designing a piece-wise constant control function taking values in a finite-dimensional set. In particular, we provide a complete characterization of…

Optimization and Control · Mathematics 2021-09-07 Umberto Biccari , Enrique Zuazua

One of the fundamental assumptions in stochastic control of continuous time processes is that the dynamics of the underlying (diffusion) process is known. This is, however, usually obviously not fulfilled in practice. On the other hand,…

Optimization and Control · Mathematics 2022-01-10 Sören Christensen , Claudia Strauch

We present a modern stochastic control framework for dynamic optimization of river environment and ecology. We focus on a fisheries problem in Japan, and show several examples of simplified optimal control problems of stochastic…

Optimization and Control · Mathematics 2020-11-13 Hidekazu Yoshioka

Studying Binomial and Gaussian return dynamics in discrete time, we show how excess volatility can be traded to create growth. We test our results on real world data to confirm the observed model phenomena while also highlighting implicit…

Trading and Market Microstructure · Quantitative Finance 2015-11-10 Jan Hendrik Witte

We study solution techniques for a linear-quadratic optimal control problem involving fractional powers of elliptic operators. These fractional operators can be realized as the Dirichlet-to-Neumann map for a nonuniformly elliptic problem…

Optimization and Control · Mathematics 2015-04-21 Harbir Antil , Enrique Otarola

We aim at understanding how the non-commutation phenomena between a linear transport operator and a fractional diffusion allow the transport operator to satisfy hypoelliptic estimates on the whole space. Such hypoelliptic estimates are…

Analysis of PDEs · Mathematics 2020-07-16 Paul Alphonse

We present an optimal hybrid control approach to the problem of stochastic route planning for sailing boats, especially in short course fleet races, in which minimum average time is an effective performance index. We show that the hybrid…

Numerical Analysis · Mathematics 2017-07-26 Roberto Ferretti , Adriano Festa

In this work, we use the integral definition of the fractional Laplace operator and study a sparse optimal control problem involving a fractional, semilinear, and elliptic partial differential equation as state equation; control constraints…

Optimization and Control · Mathematics 2023-12-14 Francisco Bersetche , Francisco Fuica , Enrique Otarola , Daniel Quero

We present a frequency domain based $H_\infty$-control strategy to solve boundary control problems for systems governed by parabolic or hyperbolic partial differential equation, where controllers are constrained to be physically…

Optimization and Control · Mathematics 2019-05-17 Pierre Apkarian , Dominikus Noll

It is well known that excessive harvesting or hunting has driven species to extinction both on local and global scales. This leads to one of the fundamental problems of conservation ecology: how should we harvest a population so that…

Probability · Mathematics 2021-02-18 Alexandru Hening , Ky Tran

A multi-class single-server system with general service time distributions is studied in a moderate deviation heavy traffic regime. In the scaling limit, an optimal control problem associated with the model is shown to be governed by a…

Optimization and Control · Mathematics 2014-07-03 Rami Atar , Anup Biswas

We introduce a numerical technique for controlling the location and stability properties of Hopf bifurcations in dynamical systems. The algorithm consists of solving an optimization problem constrained by an extended system of nonlinear…

Numerical Analysis · Mathematics 2023-09-20 Nicolas Boullé , Patrick E. Farrell , Marie E. Rognes

We study a multi-commodity Freeway Network Control (FNC) problem aiming at achieving optimal operation of a transportation network through the use of ramp metering and variable speed limits. Straightforward formulations of both single- and…

Optimization and Control · Mathematics 2025-12-24 Davide Sipione , Giacomo Como , Gustav Nilsson

In this article, we consider a stochastic linear quadratic control problem with partial observation. A near optimal control in the weak formulation is characterized. The main features of this paper are the presence of the control in the…

Optimization and Control · Mathematics 2026-02-27 Jingrui Sun , Jiaqiang Wen , Jie Xiong , Wen Xu