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The finite basis optimized effective potential (OEP) method within density functional theory is examined as an ill-posed problem. It is shown that the generation of nonphysical potentials is a controllable manifestation of the use of…

Materials Science · Physics 2009-11-11 Tim Heaton-Burgess , Felipe A. Bulat , Weitao Yang

This paper studies a robust utility maximization problem for intractable claims under distributional ambiguity, where the distribution of the claim cannot be inferred from market information and its dependence with tradable assets is…

Optimization and Control · Mathematics 2026-04-17 Guohui Guan , Zongxia Liang , Xingjian Ma

Dybvig (1988a,b) solves in a complete market setting the problem of finding a payoff that is cheapest possible in reaching a given target distribution ("cost-efficient payoff"). In the presence of ambiguity, the distribution of a payoff is,…

Portfolio Management · Quantitative Finance 2023-08-11 Carole Bernard , Gero Junike , Thibaut Lux , Steven Vanduffel

Mathematical models simulate various events under different conditions, enabling an early overview of the system to be implemented in practice, reducing the waste of resources and in less time. In project optimization, these models play a…

Optimization and Control · Mathematics 2021-05-11 Gustavo Barbosa Libotte , Fran Sérgio Lobato , Francisco Duarte Moura Neto , Gustavo Mendes Platt

Real-world problems typically require the simultaneous optimization of several, often conflicting objectives. Many of these multi-objective optimization problems are characterized by wide ranges of uncertainties in their decision variables…

Neural and Evolutionary Computing · Computer Science 2019-10-21 Faramarz Khosravi , Alexander Raß , Jürgen Teich

We investigate the probabilistic feasibility of randomized solutions to two distinct classes of uncertain multi-agent optimization programs. We first assume that only the constraints of the program are affected by uncertainty, while the…

Optimization and Control · Mathematics 2020-09-29 George Pantazis , Filiberto Fele , Kostas Margellos

To manage renewable generation and load consumption uncertainty, chance-constrained optimal power flow (OPF) formulations and various solution methodologies have been proposed. However, conventional solution approaches often rely on…

Optimization and Control · Mathematics 2019-08-06 Bowen Li , Ruiwei Jiang , Johanna L. Mathieu

Counterfactual Explanations (CEs) have received increasing interest as a major methodology for explaining neural network classifiers. Usually, CEs for an input-output pair are defined as data points with minimum distance to the input that…

Machine Learning · Computer Science 2024-04-05 Junqi Jiang , Jianglin Lan , Francesco Leofante , Antonio Rago , Francesca Toni

The last decade witnessed an explosion in the availability of data for operations research applications. Motivated by this growing availability, we propose a novel schema for utilizing data to design uncertainty sets for robust optimization…

Optimization and Control · Mathematics 2014-11-25 Dimitris Bertsimas , Vishal Gupta , Nathan Kallus

This paper proposes a new robust optimization (RO) formulation namely the RO under objective functional uncertainty (ObRO). The ObRO adopts a min-max structure where the inner problem finds the worst-case objective function in a continuous…

Optimization and Control · Mathematics 2026-05-19 Yue Song , Yuxi Lu , Gang Li , Kairui Feng , Qi Liu

We propose and axiomatize a new model of incomplete preferences under uncertainty, which we call \textit{hope-and-prepare preferences}. An act is considered more desirable than an other act when, and only when, both an optimistic…

Theoretical Economics · Economics 2025-07-29 Pierre Bardier , Bach Dong-Xuan , Van-Quy Nguyen

High penetration of renewable energy sources and the increasing share of stochastic loads require the explicit representation of uncertainty in tools such as the optimal power flow (OPF). Current approaches follow either a linearized…

Systems and Control · Computer Science 2020-07-24 Andreas Venzke , Lejla Halilbasic , Uros Markovic , Gabriela Hug , Spyros Chatzivasileiadis

We consider the robust exponential utility maximization problem in discrete time: An investor maximizes the worst case expected exponential utility with respect to a family of nondominated probabilistic models of her endowment by…

Portfolio Management · Quantitative Finance 2019-02-12 Daniel Bartl

The optimized certainty equivalent (OCE) is a family of risk measures that cover important examples such as entropic risk, conditional value-at-risk and mean-variance models. In this paper, we propose a new episodic risk-sensitive…

Machine Learning · Computer Science 2023-06-09 Wenhao Xu , Xuefeng Gao , Xuedong He

Robust optimization(RO) is an important tool for handling optimization problem with uncertainty. The main objective of RO is to solve optimization problems due to uncertainty associated with constraints satisfying all realizations of…

Optimization and Control · Mathematics 2025-04-02 Parthasarathi Mondal , Akshay Kumar Ojha

Our goal is to build robust optimization problems for making decisions based on complex data from the past. In robust optimization (RO) generally, the goal is to create a policy for decision-making that is robust to our uncertainty about…

Optimization and Control · Mathematics 2014-07-07 Theja Tulabandhula , Cynthia Rudin

In real-world recommender systems and search engines, optimizing ranking decisions to present a ranked list of relevant items is critical. Off-policy evaluation (OPE) for ranking policies is thus gaining a growing interest because it…

Machine Learning · Statistics 2022-02-04 Haruka Kiyohara , Yuta Saito , Tatsuya Matsuhiro , Yusuke Narita , Nobuyuki Shimizu , Yasuo Yamamoto

We consider the problem of estimating the Optimized Certainty Equivalent (OCE) risk from independent and identically distributed (i.i.d.) samples. For the classic sample average approximation (SAA) of OCE, we derive mean-squared error as…

Machine Learning · Computer Science 2024-06-03 Ayon Ghosh , L. A. Prashanth , Krishna Jagannathan

Many practical optimization problems involve uncertain parameters that are strictly positive. However, the most common uncertainty sets used in robust optimization are the box and the ellipsoidal sets, which may include non-positive values…

Optimization and Control · Mathematics 2026-04-29 Tatsuya Tanaka , Huimin Li , Shota Yamanaka , Ellen H. Fukuda , Nobuo Yamashita

We study fair machine learning (ML) under predictive uncertainty to enable reliable and trustworthy decision-making. The seminal work of ``equalized coverage'' proposed an uncertainty-aware fairness notion. However, it does not guarantee…

Machine Learning · Computer Science 2023-11-07 Fangxin Wang , Lu Cheng , Ruocheng Guo , Kay Liu , Philip S. Yu