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We study problems arising in real-time auction markets, common in e-commerce and computational advertising, where bidders face the problem of calculating optimal bids. We focus upon a contract management problem where a demand aggregator is…

Computational Engineering, Finance, and Science · Computer Science 2022-06-28 Ryan J. Kinnear , Ravi R. Mazumdar , Peter Marbach

In this paper, we consider the chance constrained based uncertain portfolio optimization problem in which the uncertain parameters are stochastic in nature. The primary goal of the work is to formulate the uncertain problem into a…

Optimization and Control · Mathematics 2023-11-09 Pulak Swain , Akshay Kumar Ojha

In a discrete-time market, we study model-independent superhedging, while the semi-static superhedging portfolio consists of {\it three} parts: static positions in liquidly traded vanilla calls, static positions in other tradable, yet…

Pricing of Securities · Quantitative Finance 2015-06-16 Arash Fahim , Yu-Jui Huang

Enlightened from the inverse consideration of the stable continuous-time dynamics evolution, the Variation Evolving Method (VEM) analogizes the optimal solution to the equilibrium point of an infinite-dimensional dynamic system and solves…

Systems and Control · Computer Science 2018-01-08 Sheng Zhang , Bo Liao , Fei Liao

Optimal B-robust estimate is constructed for multidimensional parameter in drift coefficient of diffusion type process with small noise. Optimal mean-variance robust (optimal V -robust) trading strategy is find to hedge in mean-variance…

Portfolio Management · Quantitative Finance 2008-12-10 N. Lazrieva , T. Toronjadze

This paper is concerned with the uniqueness issue of open-loop equilibrium investment strategies of dynamic mean-variance portfolio selection problems with random coefficients. A unified method is developed to treat both the problems with…

Optimization and Control · Mathematics 2018-02-06 Tianxiao Wang

This paper proposes novel algorithm for non-convex multimodal constrained optimisation problems. It is based on sequential solving restrictions of problem to sections of feasible set by random subspaces (in general, manifolds) of low…

Optimization and Control · Mathematics 2023-03-28 Dmitry A. Pasechnyuk , Alexander Gornov

This paper studies a class of mean-field control (MFC) problems with singular controls under general dynamic state-control-law constraints. We first propose a customized relaxed control formulation to cope with the dynamic mixed constraints…

Optimization and Control · Mathematics 2026-04-28 Lijun Bo , Jingfei Wang , Xiang Yu

We design the weights in consensus algorithms with spatially correlated random topologies. These arise with: 1) networks with spatially correlated random link failures and 2) networks with randomized averaging protocols. We show that the…

Information Theory · Computer Science 2015-05-13 Dusan Jakovetic , Joao Xavier , Jose M. F. Moura

A drawdown constraint forces the current wealth to remain above a given function of its maximum to date. We consider the portfolio optimisation problem of maximising the long-term growth rate of the expected utility of wealth subject to a…

Portfolio Management · Quantitative Finance 2013-04-23 Vladimir Cherny , Jan Obloj

We expose a theoretical hedging optimization framework with variational preferences under convex risk measures. We explore a general dual representation for the composition between risk measures and utilities. We study the properties of the…

Mathematical Finance · Quantitative Finance 2024-10-11 Marcelo Righi

We study an optimal dividend problem under a bankruptcy constraint. Firms face a trade-off between potential bankruptcy and extraction of profits. In contrast to previous works, general cash flow drifts, including Ornstein--Uhlenbeck and…

Optimization and Control · Mathematics 2018-03-05 Max Reppen , Jean-Charles Rochet , H. Mete Soner

Multivariate extreme value theory assumes a multivariate domain of attraction condition for the distribution of a random vector. This necessitates that each component satisfies a marginal domain of attraction condition. An approximation of…

Probability · Mathematics 2011-02-11 Bikramjit Das , Sidney I. Resnick

In this work, we consider the optimal portfolio selection problem under hard constraints on trading volume amounts when the dynamics of the risky asset returns are governed by a discrete-time approximation of the Markov-modulated geometric…

Portfolio Management · Quantitative Finance 2014-10-07 Vladimir Dombrovskii , Tatyana Obyedko

The discrete moment problem is a foundational problem in distribution-free robust optimization, where the goal is to find a worst-case distribution that satisfies a given set of moments. This paper studies the discrete moment problems with…

Optimization and Control · Mathematics 2017-08-08 Xi Chen , Simai He , Bo Jiang , Christopher Thomas Ryan , Teng Zhang

We study a class of dynamically consistent risk measures that robustify a time-homogeneous Markovian reference model by allowing for distributional uncertainty in its transition laws. We start from one-step convex risk evaluations in which…

Mathematical Finance · Quantitative Finance 2026-05-22 Sven Fuhrmann , Michael Kupper , Max Nendel

We study the expected utility portfolio optimization problem in an incomplete financial market where the risky asset dynamics depend on stochastic factors and the portfolio allocation is constrained to lie within a given convex set. We…

Portfolio Management · Quantitative Finance 2023-03-20 Marcos Escobar-Anel , Michel Kschonnek , Rudi Zagst

We develop an approach to risk minimization and stochastic optimization that provides a convex surrogate for variance, allowing near-optimal and computationally efficient trading between approximation and estimation error. Our approach…

Machine Learning · Statistics 2017-12-15 John Duchi , Hongseok Namkoong

Option contracts on two underlying assets within uncertain volatility models have their worst-case and best-case prices determined by a two-dimensional (2D) Hamilton-Jacobi-Bellman (HJB) partial differential equation (PDE) with…

Computational Finance · Quantitative Finance 2025-06-19 Duy-Minh Dang , Hao Zhou

We consider mean-field control problems in discrete time with discounted reward, infinite time horizon and compact state and action space. The existence of optimal policies is shown and the limiting mean-field problem is derived when the…

Optimization and Control · Mathematics 2025-10-16 Nicole Bäuerle