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Given the marginal distribution information of the underlying asset price at two future times $T_1$ and $T_2$, we consider the problem of determining a model-free upper bound on the price of a class of American options that must be…

Probability · Mathematics 2023-11-03 Tongseok Lim

We consider variational Mean Field Games endowed with a constraint on the maximal density of the distribution of players. Minimizers of the variational formulation are equilibria for a game where both the running cost and the final cost of…

Analysis of PDEs · Mathematics 2019-06-19 Hugo Lavenant , Filippo Santambrogio

We obtain bounds on the distribution of the maximum of a martingale with fixed marginals at finitely many intermediate times. The bounds are sharp and attained by a solution to $n$-marginal Skorokhod embedding problem in Ob{\l}\'oj and…

Probability · Mathematics 2016-01-18 Pierre Henry-Labordère , Jan Obłój , Peter Spoida , Nizar Touzi

In this paper, we investigate the optimal control problem for systems driven by mixed fractional Brownian motion (including a fractional Brownian motion with Hurst parameter $H>1/2$ and the standard Brownian motion). By using Malliavin…

Optimization and Control · Mathematics 2024-12-25 Yuhang Li , Yuecai Han

Consider a branching random walk evolving in a macroscopic time-inhomogeneous environment, that scales with the length $n$ of the process under study. We compute the first two terms of the asymptotic of the maximal displacement at time $n$.…

Probability · Mathematics 2018-10-01 Bastien Mallein

The Principle of Maximum Entropy is a rigorous technique for estimating an unknown distribution given partial information while simultaneously minimizing bias. However, an important requirement for applying the principle is that the…

Information Theory · Computer Science 2026-02-03 Kenneth Bogert , Matthew Kothe

We introduce an efficient computational framework for solving a class of multi-marginal martingale optimal transport problems, which includes many robust pricing problems of large financial interest. Such problems are typically…

Computational Finance · Quantitative Finance 2025-03-21 Linn Engström , Sigrid Källblad , Johan Karlsson

We consider two-player stochastic games played on a finite graph for infinitely many rounds. Stochastic games generalize both Markov decision processes (MDP) by adding an adversary player, and two-player deterministic games by adding…

Computer Science and Game Theory · Computer Science 2022-02-28 Laurent Doyen

We introduce a model of interacting random walkers on a finite one dimensional chain with absorbing boundaries or targets at the ends. Walkers are of two types: informed particles that move ballistically towards a given target, and…

Statistical Mechanics · Physics 2015-02-20 Ricardo Martinez-Garcia , Cristobal Lopez , Federico Vazquez

It is shown that the ratio between the expected diameter of an L2-bounded martingale and the standard deviation of its last term cannot exceed sqrt(3). Moreover, a one-parameter family of stopping times on standard Brownian Motion is…

Probability · Mathematics 2008-07-24 Lester E. Dubins , David Gilat , Isaac Meilijson

We investigate multi-round team competitions between two teams, where each team selects one of its players simultaneously in each round and each player can play at most once. The competition defines an extensive-form game with perfect…

Computer Science and Game Theory · Computer Science 2016-02-25 Kai Jin , Pingzhong Tang , Shiteng Chen

We present a bipartite network model that captures intermediate stages of optimization by blending the Maximum Entropy approach with Optimal Transport. In this framework, the network's constraints define the total mass each node can supply…

Statistical Mechanics · Physics 2026-02-05 Lorenzo Buffa , Dario Mazzilli , Riccardo Piombo , Fabio Saracco , Giulio Cimini , Aurelio Patelli

We show that the principle of maximum entropy, a variational method appearing in statistical inference, statistical physics, and the analysis of stochastic dynamical systems, admits a geometric description from gauge theory. Using the…

Mathematical Physics · Physics 2023-01-05 Dalton A R Sakthivadivel

We analyze an optimal stopping problem with random maturity under a nonlinear expectation with respect to a weakly compact set of mutually singular probabilities $\mathcal{P}$. The maturity is specified as the hitting time to level $0$ of…

Probability · Mathematics 2016-07-08 Erhan Bayraktar , Song Yao

In this work we develop a new algorithm for rating of teams (or players) in one-on-one games by exploiting the observed difference of the game-points (such as goals), also known as a margin of victory (MOV). Our objective is to obtain the…

Methodology · Statistics 2022-02-09 Leszek Szczecinski

We propose a new evolutionary dynamics for population games with a discrete strategy set, inspired by the theory of optimal transport and Mean field games. The dynamics can be described as a Fokker-Planck equation on a discrete strategy…

Optimization and Control · Mathematics 2018-11-14 Shui-Nee Chow , Wuchen Li , Jun Lu , Haomin Zhou

Continuity of the value of the martingale optimal transport problem on the real line w.r.t. its marginals was recently established in Backhoff-Veraguas and Pammer [2] and Wiesel [21]. We present a new perspective of this result using the…

Probability · Mathematics 2021-04-23 Ariel Neufeld , Julian Sester

We consider a two-player search game on a tree $T$. One vertex (unknown to the players) is randomly selected as the target. The players alternately guess vertices. If a guess $v$ is not the target, then both players are informed in which…

Probability · Mathematics 2022-02-07 Ravi B. Boppana , Joel Brewster Lewis

We derive an equality for non-equilibrium statistical mechanics in finite-dimensional quantum systems. The equality concerns the worst-case work output of a time-dependent Hamiltonian protocol in the presence of a Markovian heat bath. It…

We study optimal transport for stationary stochastic processes taking values in finite spaces. In order to reflect the stationarity of the underlying processes, we restrict attention to stationary couplings, also known as joinings. The…

Statistics Theory · Mathematics 2021-12-13 Kevin O'Connor , Kevin McGoff , Andrew B Nobel
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