English
Related papers

Related papers: Equilibria of Time-inconsistent Stopping for One-d…

200 papers

This paper studies the dividend and capital injection problem under a diffusion risk model with general discount functions. A proportional cost is imposed when injecting capitals. For exponential discounting as time-consistent benchmark, we…

Mathematical Finance · Quantitative Finance 2025-05-30 Sang Hu , Zihan Zhou

We study a problem when a solution to optimal stopping problem for one-dimensional diffusion will generate by threshold strategy. Namely, we give necessary and sufficient conditions under which an optimal stopping time can be specified as…

Probability · Mathematics 2013-06-20 V. I. Arkin , A. D. Slastnikov

For time-inconsistent stopping in a one-dimensional diffusion setup, we investigate how to use discrete-time models to approximate the original problem. In particular, we consider the value function $V(\cdot)$ induced by all mild equilibria…

Optimization and Control · Mathematics 2024-12-30 Erhan Bayraktar , Zhenhua Wang , Zhou Zhou

This paper studies the large time behavior of aggregation-diffusion equations. For one spatial dimension with certain assumptions on the interaction potential, the diffusion index $m$, and the initial data, we prove the convergence to the…

Analysis of PDEs · Mathematics 2021-08-23 Ruiwen Shu

In the context of driven diffusive systems, for thermodynamic transformations over a large but finite time window, we derive an expansion of the energy balance. In particular, we characterize the transformations which minimize the energy…

Statistical Mechanics · Physics 2018-06-11 L. Bertini , A. De Sole , D. Gabrielli , G. Jona-Lasinio , C. Landim

Standard Markovian optimal stopping problems are consistent in the sense that the first entrance time into the stopping set is optimal for each initial state of the process. Clearly, the usual concept of optimality cannot in a…

Optimization and Control · Mathematics 2018-12-05 Sören Christensen , Kristoffer Lindensjö

We study the well-posedness for initial boundary value problems associated with time fractional diffusion equations with non-homogenous boundary and initial values. We consider both weak and strong solutions for the problems. For weak…

Analysis of PDEs · Mathematics 2020-04-30 Yavar Kian , Masahiro Yamamoto

This paper develops a time-inconsistent and path-dependent singular control framework incorporating a running minimum process. We derive a verification theorem that characterizes equilibria under substantially weaker regularity conditions…

Optimization and Control · Mathematics 2026-05-20 Rui Dai , Guohui Guan , Zongxia Liang , Xiaodong Luo

We study a time-inconsistent singular stochastic control problem for a general one-dimensional diffusion, where time-inconsistency arises from a non-exponential discount function. To address this, we adopt a game-theoretic framework and…

Optimization and Control · Mathematics 2025-07-08 Andi Bodnariu , Kristoffer Lindensjö , Neofytos Rodosthenous

We consider the dividend maximization problem including a ruin penalty in a diffusion environment. The additional penalty term is motivated by a constraint on dividend strategies. Intentionally, we use different discount rates for the…

Optimization and Control · Mathematics 2022-04-20 Josef Anton Strini , Stefan Thonhauser

We obtain optimal moment bounds for Birkhoff sums, and optimal concentration inequalities, for a large class of slowly mixing dynamical systems, including those that admit anomalous diffusion in the form of a stable law or a central limit…

Dynamical Systems · Mathematics 2017-09-01 Sébastien Gouëzel , Ian Melbourne

An unconventional approach for optimal stopping under model ambiguity is introduced. Besides ambiguity itself, we take into account how ambiguity-averse an agent is. This inclusion of ambiguity attitude, via an $\alpha$-maxmin nonlinear…

Mathematical Finance · Quantitative Finance 2021-07-15 Yu-Jui Huang , Xiang Yu

In this article, we study the classical finite-horizon optimal stopping problem for multidimensional diffusions through an approach that differs from what is typically found in the literature. More specifically, we first prove a key…

Optimization and Control · Mathematics 2025-03-05 Andrea Cosso , Laura Perelli

A simple expression for the non-equilibrium distribution function in ultra-fast transient processes is proposed. Postulating its dependence on temporal derivatives of the equilibrium integrals of motion, non-equilibrium analogues of the…

Statistical Mechanics · Physics 2025-02-18 K. S. Glavatskiy

This paper considers a class of stochastic control problems with implicitly defined objective functions, which are the sources of time-inconsistency. We study the closed-loop equilibrium solutions in a general controlled diffusion…

Optimization and Control · Mathematics 2023-12-29 Zongxia Liang , Jianming Xia , Keyu Zhang

Consider a set of discounted optimal stopping problems for a one-parameter family of objective functions and a fixed diffusion process, started at a fixed point. A standard problem in stochastic control/optimal stopping is to solve for the…

Probability · Mathematics 2010-05-04 David Hobson , Martin Klimmek

We consider a positive recurrent one-dimensional diffusion process with continuous coefficients and we establish stable central limit theorems for a certain type of additive functionals of this diffusion. In other words we find some…

Probability · Mathematics 2022-04-27 Loïc Béthencourt

The inverse problem of backward diffusion is known to be ill-posed and highly unstable. Backward diffusion processes appear naturally in image enhancement and deblurring applications. It is therefore greatly desirable to establish a…

Numerical Analysis · Mathematics 2020-06-18 Leif Bergerhoff , Marcelo Cárdenas , Joachim Weickert , Martin Welk

A moment constraint that limits the number of dividends in the optimal dividend problem is suggested. This leads to a new type of time-inconsistent stochastic impulse control problem. First, the optimal solution in the precommitment sense…

Optimization and Control · Mathematics 2019-09-25 Sören Christensen , Kristoffer Lindensjö

This paper studies the mean-field Markov decision process (MDP) with the centralized stopping under the non-exponential discount. The problem differs fundamentally from most existing studies on mean-field optimal control/stopping due to its…

Optimization and Control · Mathematics 2025-01-22 Xiang Yu , Fengyi Yuan