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Related papers: Shifted Brownian Fluctuation Game

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We consider fractional Brownian motion with the Hurst parameters from (1/2,1). We found that the increment of a fractional Brownian motion can be represented as the sum of a two independent Gaussian processes one of which is smooth in the…

Probability · Mathematics 2015-10-14 Nikolai Dokuchaev

A multivariate fractional Brownian motion (mfBm) with component-wise Hurst exponents is used to model and forecast realized volatility. We investigate the interplay between correlation coefficients and Hurst exponents and propose a novel…

Statistical Finance · Quantitative Finance 2025-04-23 Markus Bibinger , Jun Yu , Chen Zhang

Random quantum processes play a central role both in the study of fundamental mixing processes in quantum mechanics related to equilibration, thermalisation and fast scrambling by black holes, as well as in quantum process design and…

Quantum Physics · Physics 2017-08-29 E. Onorati , O. Buerschaper , M. Kliesch , W. Brown , A. H. Werner , J. Eisert

Optimal execution in financial markets refers to the process of strategically transacting a large volume of assets over a period to achieve the best possible outcome by balancing the trade-off between market impact costs and timing or…

Machine Learning · Computer Science 2025-06-09 Yang Li , Zhi Chen

Trading frictions are stochastic. They are, moreover, in many instances fast-mean reverting. Here, we study how to optimally trade in a market with stochastic price impact and study approximations to the resulting optimal control problem…

Mathematical Finance · Quantitative Finance 2023-08-25 Jean-Pierre Fouque , Sebastian Jaimungal , Yuri F. Saporito

Collisional Brownian engines have attracted significant attention due to their simplicity, experimental accessibility, and amenability to exact analytical solutions. While previous research has predominantly focused on optimizing mean…

Statistical Mechanics · Physics 2025-11-11 Gustavo A. L. Forão , Fernando S. Filho , Pedro V. Paraguassú

The movement of a Brownian particle in a fluctuating two-state periodic potential is investigated. At high transition rate, we use a perturbation method to obtain the analytical solution of the model. It is found that the net current is a…

Biological Physics · Physics 2007-09-17 Bao-Quan Ai , Liqiu Wang , Liang-Gang Liu

We consider an investor who is dynamically informed about the future evolution of one of the independent Brownian motions driving a stock's price fluctuations. With linear temporary price impact the resulting optimal investment problem with…

Mathematical Finance · Quantitative Finance 2023-12-13 Peter Bank , Yan Dolinsky

We consider an insurance entity endowed with an initial capital and a surplus process modelled as a Brownian motion with drift. It is assumed that the company seeks to maximise the cumulated value of expected discounted dividends, which are…

Mathematical Finance · Quantitative Finance 2016-03-25 Julia Eisenberg , Paul Krühner

Dynamics of information flow in adaptively interacting stochastic processes is studied. We give an extended form of game dynamics for Markovian processes and study its behavior to observe information flow through the system. Examples of the…

Adaptation and Self-Organizing Systems · Physics 2007-05-23 Yuzuru Sato , Nihat Ay

Market participants regularly send bid and ask quotes to exchange-operated limit order books. This creates an optimization challenge where their potential profit is determined by their quoted price and how often their orders are…

Mathematical Finance · Quantitative Finance 2025-04-16 Chutian Ma , Giacinto Paolo Saggese , Paul Smith

The scope of this paper is to study the optimal stopping problems associated to a stochastic process, which may represent the gain of an investment, for which information on the final value is available a priori. This information may…

Probability · Mathematics 2019-09-09 Bernardo D'Auria , Alessandro Ferriero

Given a large number of homogeneous players that are distributed across three possible states, we consider the problem in which these players have to control their transition rates, while minimizing a cost. The optimal transition rates are…

Systems and Control · Computer Science 2018-02-13 Leonardo Stella , Dario Bauso

In the last two decades, fluctuation theorems have been proved formally and demonstrated experimentally for several variables (such as entropy production, work, or flux) and different noises causing the fluctuations (of either thermal or…

Physics and Society · Physics 2025-05-27 Peter Sidajaya , Jovan Hsuen Khai Low , Clive Cenxin Aw , Valerio Scarani

In this work, we propose two models of coupled harmonic oscillators under Brownian motion to computationally study the applications of fluctuation theorems. This paper also illustrates how to analytically calculate free energy differences…

Statistical Mechanics · Physics 2025-09-03 Julián David Jiménez-Paz , José Daniel Muñoz-Castaño

This work uses game theory as a mathematical framework to address interaction modeling in multi-agent motion forecasting and control. Despite its interpretability, applying game theory to real-world robotics, like automated driving, faces…

Machine Learning · Computer Science 2023-12-05 Christopher Diehl , Tobias Klosek , Martin Krüger , Nils Murzyn , Timo Osterburg , Torsten Bertram

Circular Dyson Brownian motion describes the Brownian dynamics of particles on a circle (periodic boundary conditions), interacting through a logarithmic, long-range two-body potential. Within the log-gas picture of random matrix theory, it…

Statistical Mechanics · Physics 2024-06-11 Wouter Buijsman

We consider the problem of dynamic buying and selling of shares from a collection of $N$ stocks with random price fluctuations. To limit investment risk, we place an upper bound on the total number of shares kept at any time. Assuming that…

Portfolio Management · Quantitative Finance 2009-09-23 Michael J. Neely

In this paper we discuss the process convergence of the time dependent fluctuations of linear eigenvalue statistics of random circulant matrices with independent Brownian motion entries, as the dimension of the matrix tends to $\infty $.…

Probability · Mathematics 2019-09-04 Shambhu Nath Maurya , Koushik Saha

Recent results on the stationary state Fluctuation Theorems for work and heat fluctuations of Langevin systems are presented. The relevance of finite time corrections in understanding experimental and simulation results is explained in the…

Statistical Mechanics · Physics 2007-07-31 E. G. D. Cohen , Ramses van Zon