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Optimal portfolio allocation is often formulated as a constrained risk problem, where one aims to minimize a risk measure subject to some performance constraints. This paper presents new Bayesian Optimization algorithms for such constrained…

Portfolio Management · Quantitative Finance 2025-03-25 Robert Millar , Jinglai Li

Many robotics domains use some form of nonconvex model predictive control (MPC) for planning, which sets a reduced time horizon, performs trajectory optimization, and replans at every step. The actual task typically requires a much longer…

Robotics · Computer Science 2021-06-11 Avik Jain , Lawrence Chan , Daniel S. Brown , Anca D. Dragan

We design scheduling policies that minimize a risk-sensitive cost criterion for a remote estimation setup. Since risk-sensitive cost objective takes into account not just the mean value of the cost, but also higher order moments of its…

Optimization and Control · Mathematics 2024-03-22 Manali Dutta , Rahul Singh

In this paper, we consider Markov Decision Processes (MDPs) with error states. Error states are those states entering which is undesirable or dangerous. We define the risk with respect to a policy as the probability of entering such a state…

Machine Learning · Computer Science 2011-09-13 P. Geibel , F. Wysotzki

In high-stakes machine learning applications, it is crucial to not only perform well on average, but also when restricted to difficult examples. To address this, we consider the problem of training models in a risk-averse manner. We propose…

Machine Learning · Computer Science 2020-11-09 Sebastian Curi , Kfir. Y. Levy , Stefanie Jegelka , Andreas Krause

Markov decision processes (MDPs) are standard models for probabilistic systems with non-deterministic behaviours. Long-run average rewards provide a mathematically elegant formalism for expressing long term performance. Value iteration (VI)…

Systems and Control · Computer Science 2017-09-01 Pranav Ashok , Krishnendu Chatterjee , Przemyslaw Daca , Jan Křetínský , Tobias Meggendorfer

In this paper, we propose an approximate dynamic programming (ADP) algorithm to solve a Markov decision process (MDP) formulation for the admission control of elective patients. To manage the elective patients from multiple specialties…

Optimization and Control · Mathematics 2021-03-10 Jian Zhang , Mahjoub Dridi , Abdellah El Moudni

Value iteration is a fundamental algorithm for solving Markov Decision Processes (MDPs). It computes the maximal $n$-step payoff by iterating $n$ times a recurrence equation which is naturally associated to the MDP. At the same time, value…

Formal Languages and Automata Theory · Computer Science 2019-04-30 Nikhil Balaji , Stefan Kiefer , Petr Novotný , Guillermo A. Pérez , Mahsa Shirmohammadi

To overcome the curses of dimensionality and modeling of Dynamic Programming (DP) methods to solve Markov Decision Process (MDP) problems, Reinforcement Learning (RL) methods are adopted in practice. Contrary to traditional RL algorithms…

Machine Learning · Computer Science 2021-08-24 Arghyadip Roy , Vivek Borkar , Abhay Karandikar , Prasanna Chaporkar

Optimizing dynamic risk with stochastic policies is challenging in both policy updates and value learning. The former typically requires transition perturbation, while the latter may rely on model-based approaches. To address these…

Machine Learning · Computer Science 2026-05-11 Yudong Luo , Erick Delage

This paper addresses risk averse constrained optimization problems where the objective and constraint functions can only be computed by a blackbox subject to unknown uncertainties. To handle mixed aleatory/epistemic uncertainties, the…

Optimization and Control · Mathematics 2023-10-18 Charles Audet , Jean Bigeon , Romain Couderc , Michael Kokkolaras

A standard objective in partially-observable Markov decision processes (POMDPs) is to find a policy that maximizes the expected discounted-sum payoff. However, such policies may still permit unlikely but highly undesirable outcomes, which…

Artificial Intelligence · Computer Science 2017-01-31 Krishnendu Chatterjee , Petr Novotný , Guillermo A. Pérez , Jean-François Raskin , Đorđe Žikelić

Following the occurrence of an extreme natural or man-made event, community recovery management should aim at providing optimal restoration policies for a community over a planning horizon. Calculating such optimal restoration polices in…

Systems and Control · Computer Science 2019-09-16 Saeed Nozhati , Yugandhar Sarkale , Edwin K. P. Chong , Bruce R. Ellingwood

Stochastic Dual Dynamic Programming (SDDP) is a widely used and fundamental algorithm for solving multistage stochastic optimization problems. Although SDDP has been frequently applied to solve risk-averse models with the Conditional…

Optimization and Control · Mathematics 2023-07-26 Joaquim Dias Garcia , Iago Leal , Raphael Chabar , Mario Veiga Pereira

This paper studies mean-risk portfolio optimization models using the conditional value-at-risk (CVaR) as a risk measure. We also employ a cardinality constraint for limiting the number of invested assets. Solving such a…

Optimization and Control · Mathematics 2020-08-10 Ken Kobayashi , Yuichi Takano , Kazuhide Nakata

We study the problem of learning optimal policies in finite-horizon Markov Decision Processes (MDPs) using low-rank reinforcement learning (RL) methods. In finite-horizon MDPs, the policies, and therefore the value functions (VFs) are not…

Machine Learning · Computer Science 2026-05-14 Sergio Rozada , Jose Luis Orejuela , Antonio G. Marques

Designing control policies for large, distributed systems is challenging, especially in the context of critical, temporal logic based specifications (e.g., safety) that must be met with high probability. Compositional methods for such…

Systems and Control · Electrical Eng. & Systems 2024-10-08 Krishna C. Kalagarla , Matthew Low , Rahul Jain , Ashutosh Nayyar , Pierluigi Nuzzo

The optimal operation problem of electric vehicle aggregator (EVA) is considered. An EVA can participate in energy and regulation markets with its current and upcoming EVs, thus reducing its total cost of purchasing energy to fulfill EVs'…

Systems and Control · Electrical Eng. & Systems 2022-07-05 Liling Gong , Ye Guo , Hongbin Sun

A diagnostic policy specifies what test to perform next, based on the results of previous tests, and when to stop and make a diagnosis. Cost-sensitive diagnostic policies perform tradeoffs between (a) the cost of tests and (b) the cost of…

Artificial Intelligence · Computer Science 2012-07-19 Valentina Bayer-Zubek

Creating bilingual dictionary is the first crucial step in enriching low-resource languages. Especially for the closely-related ones, it has been shown that the constraint-based approach is useful for inducing bilingual lexicons from two…

Computation and Language · Computer Science 2025-03-21 Arbi Haza Nasution , Yohei Murakami , Toru Ishida