English
Related papers

Related papers: Controlled Measure-Valued Martingales: a Viscosity…

200 papers

In this paper, we extend the jump-diffusion model proposed by Davis and Lleo to include jumps in asset prices as well as valuation factors. The criterion, following earlier work by Bielecki, Pliska, Nagai and others, is risk-sensitive…

Portfolio Management · Quantitative Finance 2010-03-15 Mark Davis , Sebastien Lleo

In this paper, we take up the analysis of a principal/agent model with moral hazard introduced in [17], with optimal contracting between competitive investors and an impatient bank monitoring a pool of long-term loans subject to Markovian…

Probability · Mathematics 2015-04-07 Henri Pagès , Dylan Possamaï

We consider a class of discrete time stochastic control problems motivated by some financial applications. We use a pathwise stochastic control approach to provide a dual formulation of the problem. This enables us to develop a numerical…

Probability · Mathematics 2011-12-20 Lajos Gergely Gyurko , Ben Hambly , Jan Hendrik Witte

We consider a class of (ill-posed) optimal control problems in which a distributed vector-valued control is enforced to pointwise take values in a finite set $\mathcal{M}\subset\mathbb{R}^m$. After convex relaxation, one obtains a…

Optimization and Control · Mathematics 2018-06-28 Christian Clason , Carla Tameling , Benedikt Wirth

We consider the computation of free energy-like quantities for diffusions in high dimension, when resorting to Monte Carlo simulation is necessary. Such stochastic computations typically suffer from high variance, in particular in a low…

Numerical Analysis · Mathematics 2023-07-06 Grégoire Ferré

We provide verification theorems (at different levels of generality) for infinite horizon stochastic control problems in continuous time for semimartingales. The control framework is given as an abstract "martingale formulation", which…

Probability · Mathematics 2020-01-01 Ma. Elena Hernández-Hernández , Saul Jacka , Aleksandar Mijatović

By extending to the stochastic setting the classical vanishing viscosity approach we prove the existence of suitably weak solutions of a class of nonlinear stochastic evolution equation of rate-independent type. Approximate solutions are…

Probability · Mathematics 2023-07-27 Luca Scarpa , Ulisse Stefanelli

We establish a comparison principle for viscosity solutions of a class of nonlinear partial differential equations posed on the space of nonnegative finite measures, thereby extending recent results for PDEs defined on the Wasserstein space…

Probability · Mathematics 2026-05-05 Ibrahim Ekren , Xihao He , Tianxu Lan , Xiaolu Tan

A new stochastic control problem of population dynamics under partial observation is formulated and analyzed both mathematically and numerically, with an emphasis on environmental and ecological problems. The decision-maker can only…

Optimization and Control · Mathematics 2020-04-13 Hidekazu Yoshioka , Yuta Yaegashi , Motoh Tsujimura

This paper shows how the theory of dynamic risk measures provides viscosity solutions to a family of second-order parabolic partial differential equations, even in the degenerate case. First, motivated by the martingale problem approach of…

Probability · Mathematics 2012-07-10 Jocelyne Bion-Nadal

By a memory mean-field process we mean the solution $X(\cdot)$ of a stochastic mean-field equation involving not just the current state $X(t)$ and its law $\mathcal{L}(X(t))$ at time $t$, but also the state values $X(s)$ and its law…

Optimization and Control · Mathematics 2017-11-03 Nacira Agram , Bernt Øksendal

In this paper, we adapt stochastic Perron's method to analyze a stochastic target problem with unbounded controls in a jump diffusion set-up. With this method, we construct a viscosity sub-solution and super-solution to the associated…

Optimization and Control · Mathematics 2016-05-18 Erhan Bayraktar , Jiaqi Li

In this paper, we focus on the stochastic representation of a system of coupled Hamilton-Jacobi-Bellman-Isaacs (HJB-Isaacs (HJBI), for short) equations which is in fact a system of coupled Isaacs' type integral-partial differential…

Optimization and Control · Mathematics 2023-07-12 Sheng Luo , Wenqiang Li , Xun Li , Qingmeng Wei

Mean field games are studied in the framework of controlled martingale problems, and general existence theorems are proven in which the equilibrium control is Markovian. The framework is flexible enough to include degenerate volatility,…

Probability · Mathematics 2015-04-09 Daniel Lacker

We provide an overview on how to use the measurable selection techniques to derive the dynamic programming principle for a general stochastic optimal control/stopping problem. By considering its martingale problem formulation on the…

Optimization and Control · Mathematics 2024-10-03 Nicole El Karoui , Xiaolu Tan

We consider a stochastic optimal control problem governed by a stochastic differential equation with delay in the control. Using a result of existence and uniqueness of a sufficiently regular mild solution of the associated…

Probability · Mathematics 2021-03-22 F. Gozzi , F. Masiero

For an optimal control problem of an It\^o's type stochastic differential equation, the control process could be taken as open-loop or closed-loop forms. In the standard literature, provided appropriate regularity, the value functions under…

Optimization and Control · Mathematics 2021-03-09 Jiongmin Yong , Jianfeng Zhang

This paper establishes the existence of a unique nonnegative continuous viscosity solution to the HJB equation associated with a Markovian linear-quadratic control problems with singular terminal state constraint and possibly unbounded cost…

Mathematical Finance · Quantitative Finance 2020-04-29 Ulrich Horst , Xiaonyu Xia

The paper deals with a Bolza optimal control problem for a dynamical system which motion is described by a delay differential equation under an initial condition defined by a piecewise continuous function. For the value functional in this…

Optimization and Control · Mathematics 2020-10-20 Anton Plaksin

Variational methods have been used to study stochastic control for long, see Bensoussan (1982) and Bensoussan-Lions (1978) for the early works. More precisely, variational approaches apply to the study of Bellman equation as a parabolic…

Optimization and Control · Mathematics 2025-12-01 Alain Bensoussan , Ziyu Huang , Sheung Chi Phillip Yam