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Dual control denotes a class of control problems where the parameters governing the system are imperfectly known. The challenge is to find the optimal balance between probing, i.e. exciting the system to understand it more, and caution,…

Optimization and Control · Mathematics 2020-04-29 Martin Péron , Christopher M. Baker , Barry D. Hughes , Iadine Chadès

In this paper, we consider an integrated MSP-MDP framework which captures features of Markov decision process (MDP) and multistage stochastic programming (MSP). The integrated framework allows one to study a dynamic decision-making process…

Optimization and Control · Mathematics 2025-09-29 Zhiyao Yang , Zhiping Chen , Huifu Xu

In performative stochastic optimization, decisions can influence the distribution of random parameters, rendering the data-generating process itself decision-dependent. In practice, decision-makers rarely have access to the true…

Optimization and Control · Mathematics 2025-10-27 Zhuangzhuang Jia , Yijie Wang , Roy Dong , Grani A. Hanasusanto

Modeling decision-dependent scenario probabilities in stochastic programs is difficult and typically leads to large and highly non-linear MINLPs that are very difficult to solve. In this paper, we develop a new approach to obtain a compact…

Optimization and Control · Mathematics 2017-01-18 Utz-Uwe Haus , Carla Michini , Marco Laumanns

A two-stage multi-period mixed-integer linear stochastic programming model is proposed to assist qualified operators in long-term generation and transmission expansion planning of electricity and gas systems to meet policy objectives. The…

Optimization and Control · Mathematics 2025-05-22 Giovanni Micheli , Maria Teresa Vespucci , Alessia Cortazzi , Cinzia Puglisi

Multi-stage optimization under uncertainty techniques can be used to solve long-term management problems. Although many optimization modeling language extensions as well as computational environments have been proposed, the acceptance of…

Optimization and Control · Mathematics 2014-04-24 Ronald Hochreiter

Decision circuits perform efficient evaluation of influence diagrams, building on the ad- vances in arithmetic circuits for belief net- work inference [Darwiche, 2003; Bhattachar- jya and Shachter, 2007]. We show how even more compact…

Artificial Intelligence · Computer Science 2012-03-19 Ross D. Shachter , Debarun Bhattacharjya

Partial identification approaches are a flexible and robust alternative to standard point-identification approaches in general instrumental variable models. However, this flexibility comes at the cost of a ``curse of cardinality'': the…

Econometrics · Economics 2020-06-30 Florian Gunsilius

Multistage stochastic programming is a powerful tool allowing decision-makers to revise their decisions at each stage based on the realized uncertainty. However, in practice, organizations are not able to be fully flexible, as decisions…

Optimization and Control · Mathematics 2024-01-17 Sezen Ece Kayacık , Beste Basciftci , Albert H Schrotenboer , Evrim Ursavas

This paper formed part of a preliminary research report for a risk consultancy and academic research. Stochastic Programming models provide a powerful paradigm for decision making under uncertainty. In these models the uncertainties are…

Computational Finance · Quantitative Finance 2009-04-08 Sovan Mitra

Integrated Assessment Models (IAMs) are pivotal tools that synthesize knowledge from climate science, economics, and policy to evaluate the interactions between human activities and the climate system. They serve as essential instruments…

General Economics · Economics 2025-11-04 Yongyang Cai

Changepoint models enjoy a wide appeal in a variety of disciplines to model the heterogeneity of ordered data. Graphical influence diagnostics to characterize the influence of single observations on changepoint models are, however, lacking.…

Methodology · Statistics 2021-07-23 Ines Wilms , Rebecca Killick , David S. Matteson

Although a number of related algorithms have been developed to evaluate influence diagrams, exploiting the conditional independence in the diagram, the exact solution has remained intractable for many important problems. In this paper we…

Artificial Intelligence · Computer Science 2012-06-26 Debarun Bhattacharjya , Ross D. Shachter

Classical deterministic optimal control problems assume full information about the controlled process. The theory of control for general partially-observable processes is powerful, but the methods are computationally expensive and typically…

Optimization and Control · Mathematics 2024-08-02 Dongping Qi , Adam Dhillon , Alexander Vladimirsky

Given a set of several inputs into a system (e.g., independent variables characterizing stimuli) and a set of several stochastically non-independent outputs (e.g., random variables describing different aspects of responses), how can one…

Artificial Intelligence · Computer Science 2011-08-30 Ehtibar N. Dzhafarov , Janne V. Kujala

The interdependence of electricity and natural gas markets is becoming a major topic in energy research. Integrated energy models are used to assist decision-making for businesses and policymakers addressing challenges of energy transition…

General Finance · Quantitative Finance 2020-09-11 Iegor Riepin , Thomas Möbius , Felix Müsgens

Decisions for a variable renewable resource generators commitment in the energy market are typically made in advance when little information is obtainable about wind availability and market prices. Much research has been published…

Optimization and Control · Mathematics 2021-03-09 Razan A. H. Al-Lawati , Jose L. Crespo-Vazquez , Tasnim Ibn Faiz , Xin Fang , Md. Noor-E-Alam

Multistage stochastic optimization problems are oftentimes formulated informally in a pathwise way. These are correct in a discrete setting and suitable when addressing computational challenges, for example. But the pathwise problem…

Optimization and Control · Mathematics 2021-02-23 Paul Dommel , Alois Pichler

In networks, there are often more than one source of capacity. The capacities can be permanently or temporarily owned by the decision maker. Depending on the nature of sources, we identify the permanent capacity, spot market capacity and…

Optimization and Control · Mathematics 2017-02-10 Majid Taghavi , Kai Huang

Decision making in modern stochastic systems, including e-commerce platforms, financial markets and healthcare systems, has evolved into a multifaceted process that combines information acquisition and adaptive information sources. This…

Optimization and Control · Mathematics 2026-01-07 Renyuan Xu , Thaleia Zariphopoulou , Luhao Zhang