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We have developed a novel prediction method based on string invariants. The method does not require learning but a small set of parameters must be set to achieve optimal performance. We have implemented an evolutionary algorithm for the…

Statistical Finance · Quantitative Finance 2016-06-29 Marek Bundzel , Tomas Kasanicky , Richard Pincak

We investigate constrained optimal control problems for linear stochastic dynamical systems evolving in discrete time. We consider minimization of an expected value cost over a finite horizon. Hard constraints are introduced first, and then…

Optimization and Control · Mathematics 2011-07-07 Eugenio Cinquemani , Mayank Agarwal , Debasish Chatterjee , John Lygeros

We study optimal liquidation in the presence of linear temporary and transient price impact along with taking into account a general price predicting finite-variation signal. We formulate this problem as minimization of a cost-risk…

Trading and Market Microstructure · Quantitative Finance 2022-01-17 Eyal Neuman , Moritz Voß

The Switch Point Algorithm is a new approach for solving optimal control problems whose solutions are either singular or bang-bang or both singular and bang-bang, and which possess a finite number of jump discontinuities in an optimal…

Optimization and Control · Mathematics 2021-07-20 Mahya Aghaee , William W. Hager

This article considers the pricing and hedging of a call option when liquidity matters, that is, either for a large nominal or for an illiquid underlying asset. In practice, as opposed to the classical assumptions of a price-taking agent in…

Trading and Market Microstructure · Quantitative Finance 2015-04-06 Olivier Guéant , Jiang Pu

We combine two advanced ideas widely used in optimization for machine learning: shuffling strategy and momentum technique to develop a novel shuffling gradient-based method with momentum, coined Shuffling Momentum Gradient (SMG), for…

Optimization and Control · Mathematics 2021-06-10 Trang H. Tran , Lam M. Nguyen , Quoc Tran-Dinh

We present a new class of gradient-type optimization methods that extends vanilla gradient descent, mirror descent, Riemannian gradient descent, and natural gradient descent. Our approach involves constructing a surrogate for the objective…

Optimization and Control · Mathematics 2023-06-13 Flavien Léger , Pierre-Cyril Aubin-Frankowski

The stochastic knapsack has been used as a model in wide ranging applications from dynamic resource allocation to admission control in telecommunication. In recent years, a variation of the model has become a basic tool in studying problems…

Pricing of Securities · Quantitative Finance 2008-12-02 Grace Lin , Yingdong Lu , David Yao

Mobile video consumption is increasing and sophisticated video quality adaptation strategies are required to deal with mobile throughput fluctuations. These adaptation strategies have to keep the switching frequency low, the average quality…

Multimedia · Computer Science 2018-08-27 Christian Sieber , Korbinian Hagn , Christian Moldovan , Tobias Hoßfeld , Wolfgang Kellerer

In this paper, we focus on a method based on optimal control to address the optimization problem. The objective is to find the optimal solution that minimizes the objective function. We transform the optimization problem into optimal…

Optimization and Control · Mathematics 2023-09-12 Yeming Xu , Ziyuan Guo , Hongxia Wang , Huanshui Zhang

This paper tackles challenges in pricing and revenue projections due to consumer uncertainty. We propose a novel data-based approach for firms facing unknown consumer type distributions. Unlike existing methods, we assume firms only observe…

Theoretical Economics · Economics 2024-05-28 Duarte Gonçalves , Bruno A. Furtado

We study online optimization in a setting where an online learner seeks to optimize a per-round hitting cost, which may be non-convex, while incurring a movement cost when changing actions between rounds. We ask: \textit{under what general…

Machine Learning · Computer Science 2020-01-27 Yiheng Lin , Gautam Goel , Adam Wierman

When sales of a product are affected by randomness in demand, retailers can use dynamic pricing strategies to maximise their profits. In this article the pricing problem is formulated as a stochastic optimal control problem, where the…

Optimization and Control · Mathematics 2017-10-17 Asbjørn N. Riseth , Jeff N. Dewynne , Chris L. Farmer

The paper addresses an optimal ensemble control problem for nonlocal continuity equations on the space of probability measures. We admit the general nonlinear cost functional, and an option to directly control the nonlocal terms of the…

Optimization and Control · Mathematics 2023-10-09 Roman Chertovskih , Nikolay Pogodaev , Maxim Staritsyn

In this paper we formulate a contract design problem where a primary license holder wishes to profit from its excess spectrum capacity by selling it to potential secondary users/buyers. It needs to determine how to optimally price the…

Computational Engineering, Finance, and Science · Computer Science 2012-07-30 Shang-Pin Sheng , Mingyan Liu

Learning to optimize is an approach that leverages training data to accelerate the solution of optimization problems. Many approaches use unrolling to parametrize the update step and learn optimal parameters. Although L2O has shown…

Optimization and Control · Mathematics 2025-07-15 Patrick Fahy , Mohammad Golbabaee , Matthias J. Ehrhardt

Many-to-many matching with contracts is studied in the framework of revealed preferences. All preferences are described by choice functions that satisfy natural conditions. Under a no-externality assumption individual preferences can be…

Computer Science and Game Theory · Computer Science 2020-03-05 Daniel Lehmann

This paper contributes to the literature on parametric demand estimation by using deep learning to model consumer preferences. Traditional econometric methods often struggle with limited within-product price variation, a challenge addressed…

General Economics · Economics 2024-12-16 Kirill Safonov

There are proposed models of contracts, technological equipment and gas networks and methods of their optimization. The flow in network undergoes restrictions of contracts and equipment to be operated. The values of sources and sinks are…

Computational Engineering, Finance, and Science · Computer Science 2019-11-12 Leonid A. Ostromuhov

Most recent research in network revenue management incorporates choice behavior that models the customers' buying logic. These models are consequently more complex to solve, but they return a more robust policy that usually generates better…

Optimization and Control · Mathematics 2019-11-05 Thibault Barbier , Miguel Anjos , Fabien Cirinei , Gilles Savard
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