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We study the problem of optimal portfolio selection under stochastic volatility within a continuous time reinforcement learning framework with portfolio constraints. Exploration is modeled through entropy-regularized relaxed controls, where…

Mathematical Finance · Quantitative Finance 2026-04-27 Thai Nguyen , Pertiny Nkuize

This paper presents a deep reinforcement learning (DRL) framework for dynamic portfolio optimization under market uncertainty and risk. The proposed model integrates a Sharpe ratio-based reward function with direct risk control mechanisms,…

Portfolio Management · Quantitative Finance 2025-11-17 Emmanuel Lwele , Sabuni Emmanuel , Sitali Gabriel Sitali

In distributed optimization, the practical problem-solving performance is essentially sensitive to algorithm selection, parameter setting, problem type and data pattern. Thus, it is often laborious to acquire a highly efficient method for a…

Optimization and Control · Mathematics 2024-01-04 Daokuan Zhu , Tianqi Xu , Jie Lu

Distribution Matching Distillation (DMD) facilitates efficient inference by distilling multi-step diffusion models into few-step variants. Concurrently, Reinforcement Learning (RL) has emerged as a vital tool for aligning generative models…

Computer Vision and Pattern Recognition · Computer Science 2026-03-26 Dengyang Jiang , Dongyang Liu , Zanyi Wang , Qilong Wu , Liuzhuozheng Li , Hengzhuang Li , Xin Jin , David Liu , Changsheng Lu , Zhen Li , Bo Zhang , Mengmeng Wang , Steven Hoi , Peng Gao , Harry Yang

In this paper, we study the optimal control problem for a company whose surplus process evolves as an upward jump diffusion with random return on investment. Three types of practical optimization problems faced by a company that can control…

Portfolio Management · Quantitative Finance 2016-11-04 Chuancun Yin , Kam Chuen Yuen

We consider a singular stochastic control problem, which is called the Monotone Follower Stochastic Control Problem and give sufficient conditions for the existence and uniqueness of a local-time type optimal control. To establish this…

Optimization and Control · Mathematics 2007-05-23 Erhan Bayraktar , Masahiko Egami

We address a long-standing open problem in risk theory, namely the optimal strategy to pay out dividends from an insurance surplus process, if the dividend rate can never be decreased. The optimality criterion here is to maximize the…

Portfolio Management · Quantitative Finance 2021-06-08 Hansjoerg Albrecher , Pablo Azcue , Nora Muler

Optimal execution is a sequential decision-making problem for cost-saving in algorithmic trading. Studies have found that reinforcement learning (RL) can help decide the order-splitting sizes. However, a problem remains unsolved: how to…

Trading and Market Microstructure · Quantitative Finance 2022-07-25 Feiyang Pan , Tongzhe Zhang , Ling Luo , Jia He , Shuoling Liu

Reinforcement learning (RL) has been effective for post-training autoregressive (AR) language models, but extending these methods to diffusion language models (DLMs) is challenging due to intractable sequence-level likelihoods. Existing…

Standard model-free deep reinforcement learning (RL) algorithms sample a new initial state for each trial, allowing them to optimize policies that can perform well even in highly stochastic environments. However, problems that exhibit…

Machine Learning · Computer Science 2018-04-30 Dibya Ghosh , Avi Singh , Aravind Rajeswaran , Vikash Kumar , Sergey Levine

This paper applies a reinforcement learning (RL) method to solve infinite horizon continuous-time stochastic linear quadratic problems, where drift and diffusion terms in the dynamics may depend on both the state and control. Based on…

Optimization and Control · Mathematics 2021-09-17 Na Li , Xun Li , Jing Peng , Zuo Quan Xu

In this work, we focus on the alignment problem of diffusion models with a continuous reward function, which represents specific objectives for downstream tasks, such as increasing darkness or improving the aesthetics of images. The central…

Machine Learning · Computer Science 2024-10-03 Zhiwei Tang , Jiangweizhi Peng , Jiasheng Tang , Mingyi Hong , Fan Wang , Tsung-Hui Chang

Bridging the gap between diffusion models and human preferences is crucial for their integration into practical generative workflows. While optimizing downstream reward models has emerged as a promising alignment strategy, concerns arise…

Machine Learning · Computer Science 2026-03-02 Ziyi Zhang , Sen Zhang , Yibing Zhan , Yong Luo , Yonggang Wen , Dacheng Tao

We consider the optimal dividend problem under a habit formation constraint that prevents the dividend rate to fall below a certain proportion of its historical maximum, the so-called drawdown constraint. This is an extension of the optimal…

Mathematical Finance · Quantitative Finance 2019-03-25 Bahman Angoshtari , Erhan Bayraktar , Virginia R. Young

In this study, we develop a stochastic optimal control approach with reinforcement learning structure to learn the unknown parameters appeared in the drift and diffusion terms of the stochastic differential equation. By choosing an…

Optimization and Control · Mathematics 2023-08-22 Shuzhen Yang

One of the key challenges that Reinforcement Learning (RL) faces is its limited capability to adapt to a change of data distribution caused by uncertainties. This challenge arises especially in RL systems using deep neural networks as…

Machine Learning · Computer Science 2025-06-17 Amornyos Horprasert , Esa Apriaskar , Xingyu Liu , Lanlan Su , Lyudmila S. Mihaylova

We investigate reinforcement learning (RL) in the presence of distributional mismatch between training and deployment, where policies trained in simulators often underperform in practice due to mismatches between training and deployment…

Machine Learning · Computer Science 2025-11-12 Debamita Ghosh , George K. Atia , Yue Wang

Constrained reinforcement learning (RL) seeks high-performance policies under safety constraints. We focus on an offline setting where the agent has only a fixed dataset -- common in realistic tasks to prevent unsafe exploration. To address…

Machine Learning · Computer Science 2025-09-08 Junyu Guo , Zhi Zheng , Donghao Ying , Ming Jin , Shangding Gu , Costas Spanos , Javad Lavaei

Efficient data transfers over high-speed, long-distance shared networks require proper utilization of available network bandwidth. Using parallel TCP streams enables an application to utilize network parallelism and can improve transfer…

Networking and Internet Architecture · Computer Science 2022-12-02 Hasibul Jamil , Elvis Rodrigues , Jacob Goldverg , Tevfik Kosar

This paper studies a discrete-time mean-variance model based on reinforcement learning. Compared with its continuous-time counterpart in \cite{zhou2020mv}, the discrete-time model makes more general assumptions about the asset's return…

Mathematical Finance · Quantitative Finance 2023-12-27 Xiangyu Cui , Xun Li , Yun Shi , Si Zhao