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High precision analytical approximation is proposed for variance-covariance based risk allocation in a portfolio of risky assets. A general case of a single-period multi-factor Merton-type model with stochastic recovery is considered. The…

Risk Management · Quantitative Finance 2009-09-28 Mikhail Voropaev

We study an optimal dividend problem for an insurer who simultaneously controls investment weights in a financial market, liability ratio in the insurance business, and dividend payout rate. The insurer seeks an optimal strategy to maximize…

Mathematical Finance · Quantitative Finance 2021-05-27 Zhuo Jin , Zuo Quan Xu , Bin Zou

Optimizing the design of complex systems requires navigating interdependent decisions, heterogeneous components, and multiple objectives. Our monotone theory of co-design offers a compositional framework for addressing this challenge,…

Systems and Control · Electrical Eng. & Systems 2025-08-13 Yujun Huang , Marius Furter , Gioele Zardini

We examine the behavior of multi-agent networks where information-sharing is subject to a positive communications cost over the edges linking the agents. We consider a general mean-square-error formulation where all agents are interested in…

Multiagent Systems · Computer Science 2016-11-15 Chung-Kai Yu , Mihaela van der Schaar , Ali H. Sayed

In financial markets, agents often mutually influence each other's investment strategies and adjust their strategies to align with others. However, there is limited quantitative study of agents' investment strategies in such scenarios. In…

Systems and Control · Electrical Eng. & Systems 2025-01-27 Huisheng Wang , H. Vicky Zhao

We study distributed composite optimization over networks: agents minimize a sum of smooth (strongly) convex functions, the agents' sum-utility, plus a nonsmooth (extended-valued) convex one. We propose a general unified algorithmic…

Optimization and Control · Mathematics 2021-08-04 Jinming Xu , Ye Tian , Ying Sun , Gesualdo Scutari

Constrained submodular set function maximization problems often appear in multi-agent decision-making problems with a discrete feasible set. A prominent example is the problem of multi-agent mobile sensor placement over a discrete domain.…

Optimization and Control · Mathematics 2021-08-02 Navid Rezazadeh , Solmaz S. Kia

We commonly encounter the problem of identifying an optimally weight adjusted version of the empirical distribution of observed data, adhering to predefined constraints on the weights. Such constraints often manifest as restrictions on the…

Machine Learning · Statistics 2024-01-17 Abhisek Chakraborty , Anirban Bhattacharya , Debdeep Pati

This paper investigates the impact of distributional uncertainty on key risk measures under the partial knowledge of underlying distributions characterized by their first two moments and shape information (specifically symmetry and/or…

Risk Management · Quantitative Finance 2025-12-16 Mengshuo Zhao , Narayanaswamy Balakrishnan , Chuancun Yin , Hui Shao

We consider a private variant of the classical allocation problem: given k goods and n agents with individual, private valuation functions over bundles of goods, how can we partition the goods amongst the agents to maximize social welfare?…

Computer Science and Game Theory · Computer Science 2018-03-16 Justin Hsu , Zhiyi Huang , Aaron Roth , Tim Roughgarden , Zhiwei Steven Wu

We study the Merton problem of optimal consumption-investment for the case of two investors sharing a final wealth. The typical example would be a husband and wife sharing a portfolio looking to optimize the expected utility of consumption…

Portfolio Management · Quantitative Finance 2019-01-03 Adrien Nguyen Huu , Oumar Mbodji , A Nguyen-Huu , Traian A. Pirvu

Distributed learning and adaptation have received significant interest and found wide-ranging applications in machine learning and signal processing. While various approaches, such as shared-memory optimization, multi-task learning, and…

Signal Processing · Electrical Eng. & Systems 2024-12-03 Pourya Behmandpoor , Marc Moonen , Panagiotis Patrinos

Chance constraints are frequently used to limit the probability of constraint violations in real-world optimization problems where the constraints involve stochastic components. We study chance-constrained submodular optimization problems,…

Optimization and Control · Mathematics 2023-09-27 Xiankun Yan , Anh Viet Do , Feng Shi , Xiaoyu Qin , Frank Neumann

We discuss two distinct approaches, for distorting risk measures of sums of dependent random variables, which preserve the property of coherence. The first, based on distorted expectations, operates on the survival function of the sum. The…

Methodology · Statistics 2011-06-17 Brahim Brahimi , Djamel Meraghni , Abdelhakim Necir

Quantiles, expectiles and extremiles can be seen as concepts defined via an optimization problem, where this optimization problem is driven by two important ingredients: the loss function as well as a distributional weight function. This…

Methodology · Statistics 2024-05-21 Dieter Debrauwer , Irène Gijbels , Klaus Herrmann

Estimating the covariance of asset returns, i.e., the risk model, is a key component of financial portfolio construction and evaluation. Most risk modeling approaches produce a factor model that decomposes the asset variability into two…

We study strongly convex distributed optimization problems where a set of agents are interested in solving a separable optimization problem collaboratively. In this paper, we propose and study a two time-scale decentralized gradient descent…

Optimization and Control · Mathematics 2022-08-16 Hadi Reisizadeh , Behrouz Touri , Soheil Mohajer

Many allocation problems in multiagent systems rely on agents specifying cardinal preferences. However, allocation mechanisms can be sensitive to small perturbations in cardinal preferences, thus causing agents who make ``small" or…

Computer Science and Game Theory · Computer Science 2021-07-13 Vijay Menon , Kate Larson

The Assignment problem is a fundamental and well-studied problem in the intersection of Social Choice, Computational Economics and Discrete Allocation. In the Assignment problem, a group of agents expresses preferences over a set of items,…

Data Structures and Algorithms · Computer Science 2021-05-24 Barak Steindl , Meirav Zehavi

I provide a unified framework to establish the existence of a weak Pareto efficient, envy-free allocation in general settings: random allocations are probability measures on a compact metric space, and preferences of agents are represented…

Theoretical Economics · Economics 2026-05-28 Anna Vakarova