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In this paper we discuss optimality conditions for abstract optimization problems over complex spaces. We then apply these results to optimal control problems with a semigroup structure. As an application we detail the case when the state…

Optimization and Control · Mathematics 2019-01-15 M. Soledad Aronna , Frédéric Bonnans , Axel Kröner

We address the problem of reshaping light in the Schr\"odinger optics regime from the perspective of optimal control theory. In technological applications, Schr\"odinger optics is often used to model a slowly-varying amplitude of a…

Optimization and Control · Mathematics 2022-05-04 Jimmie Adriazola , Roy H. Goodman

In ergodic singular stochastic control problems, a decision-maker can instantaneously adjust the evolution of a state variable using a control of bounded variation, with the goal of minimizing a long-term average cost functional. The cost…

Optimization and Control · Mathematics 2025-10-14 Alessandro Calvia , Federico Cannerozzi , Giorgio Ferrari

This paper investigates a continuous-time portfolio optimization problem with the following features: (i) a no-short selling constraint; (ii) a leverage constraint, that is, an upper limit for the sum of portfolio weights; and (iii) a…

Portfolio Management · Quantitative Finance 2022-03-08 Masashi Ieda

This paper is concerned with an optimal control problem for a forward-backward stochastic differential equation (FBSDE, for short) with a recursive cost functional determined by a backward stochastic Volterra integral equation (BSVIE, for…

Optimization and Control · Mathematics 2022-09-20 Hanxiao Wang , Jiongmin Yong , Chao Zhou

In this paper, we consider the implementation of multi-level Monte Carlo method to a stochastic optimal control problem with log-normal coefficients and its surrogate model problem. From the perspective of two optimization problems, i.e.,…

Optimization and Control · Mathematics 2016-01-19 Qi Sun , Ju Ming

Choosing control inputs randomly can result in a reduced expected cost in optimal control problems with stochastic constraints, such as stochastic model predictive control (SMPC). We consider a controller with initial randomization, meaning…

Robotics · Computer Science 2016-07-07 Masahiro Ono , Mahmoud El Chamie , Marco Pavone , Behcet Acikmese

We propose a data-driven Neural Network (NN) optimization framework to determine the optimal multi-period dynamic asset allocation strategy for outperforming a general stochastic target. We formulate the problem as an optimal stochastic…

Computational Finance · Quantitative Finance 2020-06-30 Chendi Ni , Yuying Li , Peter Forsyth , Ray Carroll

This paper studies the problem of steering a linear time-invariant system subject to state and input constraints towards a goal location that may be inferred only through partial observations. We assume mixed-observable settings, where the…

Optimization and Control · Mathematics 2022-11-22 Ugo Rosolia , Yuxiao Chen , Shreyansh Daftry , Masahiro Ono , Yisong Yue , Aaron D. Ames

We construct an aggregated version of the value processes associated with stochastic control problems, where the criterion to optimise is given by solutions to semi-martingale backward stochastic differential equations (BSDEs). The results…

Probability · Mathematics 2025-07-03 Dylan Possamaï , Marco Rodrigues , Alexandros Saplaouras

We propose formulating the finite-horizon stochastic optimal control problem for colloidal self-assembly in the space of probability density functions (PDFs) of the underlying state variables (namely, order parameters). The control…

Optimization and Control · Mathematics 2022-09-08 Iman Nodozi , Jared O'Leary , Ali Mesbah , Abhishek Halder

We tackle a nonlinear optimal control problem for a stochastic differential equation in Euclidean space and its state-linear counterpart for the Fokker-Planck-Kolmogorov equation in the space of probabilities. Our approach is founded on a…

Optimization and Control · Mathematics 2024-09-23 Roman Chertovskih , Nikolay Pogodaev , Maxim Staritsyn , A. Pedro Aguiar

Financial portfolio optimization is a widely studied problem in mathematics, statistics, financial and computational literature. It adheres to determining an optimal combination of weights associated with financial assets held in a…

Portfolio Management · Quantitative Finance 2013-01-21 Ankit Dangi

In this paper, we discuss an application of the SDDP type algorithm to nested risk-averse formulations of Stochastic Optimal Control (SOC) problems. We propose a construction of a statistical upper bound for the optimal value of risk-averse…

Optimization and Control · Mathematics 2023-05-04 Vincent Guigues , Alexander Shapiro , Yi Cheng

In numerous applications across all science and engineering areas, there are optimization problems where both the objective function and the constraints have no closed-form expression or are too complex to be managed analytically, that they…

Optimization and Control · Mathematics 2022-02-24 Lorenzo Sabug , Fredy Ruiz , Lorenzo Fagiano

This paper studies a systemic risk control problem by the central bank, which dynamically plans monetary supply to stabilize the interbank system with borrowing and lending activities. Facing both heterogeneity among banks and the common…

Optimization and Control · Mathematics 2022-05-18 Lijun Bo , Tongqing Li , Xiang Yu

The optimal control of problems that are constrained by partial differential equations with uncertainties and with uncertain controls is addressed. The Lagrangian that defines the problem is postulated in terms of stochastic functions, with…

Optimization and Control · Mathematics 2012-11-19 Eveline Rosseel , Garth N. Wells

In this paper we present a dynamic programing approach to stochastic optimal control problems with dynamic, time-consistent risk constraints. Constrained stochastic optimal control problems, which naturally arise when one has to consider…

Optimization and Control · Mathematics 2015-11-24 Yin-Lam Chow , Marco Pavone

In this paper, we present a spectral optimal control framework for Fokker-Planck equations based on the standard ground state transformation that maps the Fokker-Planck operator to a Schrodinger operator. Our primary objective is to…

Optimization and Control · Mathematics 2025-05-28 Dante Kalise , Lucas M. Moschen , Grigorios A. Pavliotis , Urbain Vaes

We study a constrained optimal control problem with possibly degenerate coefficients arising in models of optimal portfolio liquidation under market impact. The coefficients can be random in which case the value function is described by a…

Mathematical Finance · Quantitative Finance 2015-07-22 Ulrich Horst , Jinniao Qiu , Qi Zhang