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Equivalences are known between problems of singular stochastic control (SSC) with convex performance criteria and related questions of optimal stopping, see for example Karatzas and Shreve [SIAM J. Control Optim. 22 (1984)]. The aim of this…

Optimization and Control · Mathematics 2014-11-13 Tiziano De Angelis , Giorgio Ferrari , John Moriarty

We present a heuristic policy and performance bound for risk-sensitive convex stochastic control that generalizes linear-exponential-quadratic regulator (LEQR) theory. Our heuristic policy extends standard, risk-neutral model predictive…

Optimization and Control · Mathematics 2022-05-30 Nicholas Moehle

The augmented Lagrangian method (ALM) is a classical optimization tool that solves a given "difficult" (constrained) problem via finding solutions of a sequence of "easier"(often unconstrained) sub-problems with respect to the original…

Optimization and Control · Mathematics 2020-04-16 Dusan Jakovetic , Dragana Bajovic , Joao Xavier , Jose M. F. Moura

This paper derives a posteriori error estimators for the nonlinear first-order optimality conditions associated with the electrically and flexoelectrically coupled Frank-Oseen model of liquid crystals, building on the results of [14] for…

Numerical Analysis · Mathematics 2018-06-19 D. B. Emerson

The fast growth of communication technology within the concept of smart grids can provide data and control signals from/to all consumers in an online fashion. This could foster more participation for end-user customers. These types of…

Systems and Control · Electrical Eng. & Systems 2020-09-11 Arman Alahyari , David Pozo

We propose a new splitting and successively solving augmented Lagrangian (SSAL) method for solving an optimization problem with both semicontinuous variables and a cardinality constraint. This optimization problem arises in several contexts…

Optimization and Control · Mathematics 2015-06-16 Yanqin Bai , Renli Liang , Zhouwang Yang

In South Korea, power grid is currently operated based on the static line rating (SLR) method, where the transmission line capacity is determined based on extreme weather conditions. However, with global warming, there is a concern that the…

Systems and Control · Electrical Eng. & Systems 2026-03-19 Junseon Park , Junhyun Lee , Hyeongon Park

It is well-known that a market equilibrium with uniform prices often does not exist in non-convex day-ahead electricity auctions. We consider the case of the non-convex, uniform-price Pan-European day-ahead electricity market "PCR" (Price…

Optimization and Control · Mathematics 2015-02-02 Mehdi Madani , Mathieu Van Vyve

Energy storage and demand-side response will play an increasingly important role in the future electricity system. We extend previous results on a single energy storage unit to the management of two energy storage units cooperating for the…

Optimization and Control · Mathematics 2020-05-25 Miguel F. Anjos , James R. Cruise , Albert Solà Vilalta

In this paper we introduce a new optimization formulation for sparse regression and compressed sensing, called CLOT (Combined L-One and Two), wherein the regularizer is a convex combination of the $\ell_1$- and $\ell_2$-norms. This…

Machine Learning · Statistics 2017-06-21 Mehmet Eren Ahsen , Niharika Challapalli , Mathukumalli Vidyasagar

In this work, we propose a control scheme for linear systems subject to pointwise in time state and input constraints that aims to minimize time-varying and a priori unknown cost functions. The proposed controller is based on online convex…

Systems and Control · Electrical Eng. & Systems 2024-12-02 Marko Nonhoff , Johannes Köhler , Matthias A. Müller

Short-term hydro-generation management poses a non-convex or even non-continuous optimization problem. For this reason, the problem of systematically obtaining feasible and economically satisfying solutions has not yet been completely…

Optimization and Control · Mathematics 2022-04-12 Jean-Philippe Chancelier , A Renaud

Primal-dual safe RL methods commonly perform iterations between the primal update of the policy and the dual update of the Lagrange Multiplier. Such a training paradigm is highly susceptible to the error in cumulative cost estimation since…

Machine Learning · Computer Science 2024-04-16 Zifan Wu , Bo Tang , Qian Lin , Chao Yu , Shangqin Mao , Qianlong Xie , Xingxing Wang , Dong Wang

We consider the robust pricing and hedging of American options in a continuous time setting. We assume asset prices are continuous semimartingales, but we allow for general model uncertainty specification via adapted closed convex…

Mathematical Finance · Quantitative Finance 2025-10-08 Ivan Guo , Jan Obłój

In this paper we study the pricing and hedging of structured products in energy markets, such as swing and virtual gas storage, using the exponential utility indifference pricing approach in a general incomplete multivariate market model…

Mathematical Finance · Quantitative Finance 2016-02-23 Giorgia Callegaro , Luciano Campi , Valeria Giusto , Tiziano Vargiolu

In many sequential decision making applications, the change of decision would bring an additional cost, such as the wear-and-tear cost associated with changing server status. To control the switching cost, we introduce the problem of online…

Machine Learning · Computer Science 2021-03-23 Guanghui Wang , Yuanyu Wan , Tianbao Yang , Lijun Zhang

The European market clearing problem is characterized by a set of heterogeneous orders and rules that force the implementation of heuristic and iterative solving methods. In particular, curtailable block orders and the uniform purchase…

Pricing of Securities · Quantitative Finance 2018-06-15 Iacopo Savelli , Bertrand Cornélusse , Antonio Giannitrapani , Simone Paoletti , Antonio Vicino

By exploiting double-penalty terms for the primal subproblem, we develop a novel relaxed augmented Lagrangian method for solving a family of convex optimization problems subject to equality or inequality constraints. The method is then…

Numerical Analysis · Mathematics 2025-06-16 Jianchao Bai , Linyuan Jia , Zheng Peng

We introduce a new framework for optimal routing and arbitrage in AMM driven markets. This framework improves on the original best-practice convex optimization by restricting the search to the boundary of the optimal space. We can…

Mathematical Finance · Quantitative Finance 2025-02-13 Stefan Loesch , Mark Bentley Richardson

We propose a high-order version of the augmented Lagrangian method for solving convex optimization problems with linear constraints, which achieves arbitrarily fast -- and even superlinear -- convergence rates. First, we analyze the…

Optimization and Control · Mathematics 2026-01-21 Young-Ju Lee , Jongho Park