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This paper studies finite-time optimal consumption-investment problems with power, logarithmic and exponential utilities, in a regime switching market with random coefficients, subject to coupled constraints on the consumption and…

Probability · Mathematics 2022-11-11 Ying Hu , Xiaomin Shi , Zuo Quan Xu

We propose a new multistep deep learning-based algorithm for the resolution of moderate to high dimensional nonlinear backward stochastic differential equations (BSDEs) and their corresponding parabolic partial differential equations (PDE).…

Numerical Analysis · Mathematics 2023-08-29 Daniel Bussell , Camilo Andrés García-Trillos

This paper investigates the optimal control problem for a class of nonlinear fully coupled forward-backward stochastic difference equations (FBS$\Delta$Es). Under the convexity assumption of the control domain, we establish a variational…

Optimization and Control · Mathematics 2025-12-02 Zhipeng Niu , Jun Moon , Qingxin Meng

This paper build on our recent work where we presented a dual stochastic optimal control formulation of the nonlinear filtering problem [1]. The constraint for the dual problem is a backward stochastic differential equations (BSDE). The…

Optimization and Control · Mathematics 2021-11-02 Jin Won Kim , Prashant G. Mehta

Optimal control of obstacle problems arises in a wide range of applications and is computationally challenging due to its nonsmoothness, nonlinearity, and bilevel structure. Classical numerical approaches rely on mesh-based discretization…

Optimization and Control · Mathematics 2026-01-08 Yongcun Song , Shangzhi Zeng , Jin Zhang , Lvgang Zhang

In this work, we study the numerical approximation of a class of singular fully coupled forward backward stochastic differential equations. These equations have a degenerate forward component and non-smooth terminal condition. They are…

Numerical Analysis · Mathematics 2022-08-17 Jean-François Chassagneux , Mohan Yang

The multilevel reverse Stackelberg game is considered. In this game, the leader controls the outcome by announcing a strategy as a function of decision variables of the followers to his/her own decision space. Corresponding to the leader's…

Optimization and Control · Mathematics 2023-03-01 Seyfe Belete Worku , Birilew Belayneh Tsegaw , Semu Mitiku Kassa

This paper presents a novel and direct approach to price boundary and final-value problems, corresponding to barrier options, using forward deep learning to solve forward-backward stochastic differential equations (FBSDEs). Barrier…

Computational Finance · Quantitative Finance 2024-09-13 Narayan Ganesan , Yajie Yu , Bernhard Hientzsch

Although there is a substantial body of literature on control and optimization problems for parabolic and hyperbolic systems, the specific problem of controlling and optimizing the coefficients of the associated operators within such…

Optimization and Control · Mathematics 2026-05-21 Alain Bensoussan , Minh-Binh Tran , Bangjie Wang

This paper addresses a distributed optimization problem in a communication network where nodes are active sporadically. Each active node applies some learning method to control its action to maximize the global utility function, which is…

Optimization and Control · Mathematics 2021-04-20 Wenjie Li , Mohamad Assaad , Shiqi Zheng

We present a novel numerical method for solving McKean-Vlasov forward-backward stochastic differential equations (MV-FBSDEs) with common noise, combining Picard iterations, elicitability and deep learning. The key innovation involves…

Machine Learning · Computer Science 2025-12-18 Felipe J. P. Antunes , Yuri F. Saporito , Sebastian Jaimungal

We study a hierarchical control problem for stochastic parabolic equations involving gradient terms. We employ the Stackelberg-Nash strategy with two leaders and two followers. The leaders are responsible for selecting the policy targeting…

Optimization and Control · Mathematics 2024-07-31 Omar Oukdach , Said Boulite , Abdellatif Elgrou , Lahcen Maniar

We study an optimal control problem on infinite time horizon with semimartingale strategies, random coefficients and regime switching. The value function and the optimal strategy can be characterized in terms of three systems of backward…

Optimization and Control · Mathematics 2026-02-27 Xinman Cheng , Guanxing Fu , Xiaonyu Xia

Sequential Bayesian optimal experimental design (SBOED) for PDE-governed inverse problems is computationally challenging, especially for infinite-dimensional random field parameters. High-fidelity approaches require repeated forward and…

Optimization and Control · Mathematics 2026-01-12 Kaichen Shen , Peng Chen

This paper is concerned with the existence and uniqueness of weak solutions to the Cauchy-Dirichlet problem of backward stochastic partial differential equations (BSPDEs) with nonhomogeneous terms of quadratic growth in both the gradient of…

Probability · Mathematics 2012-07-24 Kai Du , Shaokuan Chen

This paper considers power distribution networks with distributed energy resources and designs an incentive-based algorithm that allows the network operator and customers to pursue given operational and economic objectives while…

Optimization and Control · Mathematics 2017-08-14 Xinyang Zhou , Zhiyuan Liu , Emiliano Dall'Anese , Lijun Chen

We develop a probabilistic machine learning method, which formulates a class of stochastic neural networks by a stochastic optimal control problem. An efficient stochastic gradient descent algorithm is introduced under the stochastic…

Machine Learning · Computer Science 2021-04-06 Richard Archibald , Feng Bao , Yanzhao Cao , He Zhang

We propose a machine learning algorithm for solving finite-horizon stochastic control problems based on a deep neural network representation of the optimal policy functions. The algorithm has three features: (1) It can solve…

General Economics · Economics 2024-12-09 Xianhua Peng , Steven Kou , Lekang Zhang

We report two methods for solving FBSDEs of path dependent types of high dimensions. Specifically, we propose a deep learning framework for solving such problems using path signatures as underlying features. Our two methods…

Probability · Mathematics 2024-02-12 Hui Sun , Feng Bao

We propose a novel data-driven neural network (NN) optimization framework for solving an optimal stochastic control problem under stochastic constraints. Customized activation functions for the output layers of the NN are applied, which…

Optimization and Control · Mathematics 2023-06-21 Marc Chen , Mohammad Shirazi , Peter A. Forsyth , Yuying Li