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We prove convergence of the proximal policy gradient method for a class of constrained stochastic control problems with control in both the drift and diffusion of the state process. The problem requires either the running or terminal cost…

Optimization and Control · Mathematics 2025-05-27 Ashley Davey , Harry Zheng

We consider a stochastic impulse control problem that is motivated by applications such as the optimal exploitation of a natural resource. In particular, we consider a stochastic system whose uncontrolled state dynamics are modelled by a…

Optimization and Control · Mathematics 2024-08-27 Zhesheng Liu , Mihail Zervos

We study two-player zero-sum stochastic games, and propose a form of independent learning dynamics called Doubly Smoothed Best-Response dynamics, which integrates a discrete and doubly smoothed variant of the best-response dynamics into…

Computer Science and Game Theory · Computer Science 2023-03-07 Zaiwei Chen , Kaiqing Zhang , Eric Mazumdar , Asuman Ozdaglar , Adam Wierman

An unconventional approach for optimal stopping under model ambiguity is introduced. Besides ambiguity itself, we take into account how ambiguity-averse an agent is. This inclusion of ambiguity attitude, via an $\alpha$-maxmin nonlinear…

Mathematical Finance · Quantitative Finance 2021-07-15 Yu-Jui Huang , Xiang Yu

We study a game of resource extraction of a common good under one-dimensional diffusive dynamics with player actions corresponding to singular stochastic control up to absorption at $0$, implying a trade-off between profitable resource…

Probability · Mathematics 2025-12-22 Piotr Chlebicki , Kristoffer Lindensjö

In this article we study an optimal stopping/optimal control problem which models the decision facing a risk-averse agent over when to sell an asset. The market is incomplete so that the asset exposure cannot be hedged. In addition to the…

Portfolio Management · Quantitative Finance 2008-12-10 Vicky Henderson , David Hobson

We study a model of two-player, zero-sum, stopping games with asymmetric information. We assume that the payoff depends on two continuous-time Markov chains (X, Y), where X is only observed by player 1 and Y only by player 2, implying that…

Optimization and Control · Mathematics 2017-12-06 Fabien Gensbittel , Christine Grün

We formulate a new class of two-person zero-sum differential games, in a stochastic setting, where a specification on a target terminal state distribution is imposed on the players. We address such added specification by introducing…

Systems and Control · Electrical Eng. & Systems 2019-09-13 Yongxin Chen , Tryphon T. Georgiou , Michele Pavon

We present some new results on sample path optimality for the ergodic control problem of a class of non-degenerate diffusions controlled through the drift. The hypothesis most often used in the literature to ensure the existence of an a.s.…

Optimization and Control · Mathematics 2019-03-20 Ari Arapostathis

We establish a connection between stochastic optimal control and generative models based on stochastic differential equations (SDEs), such as recently developed diffusion probabilistic models. In particular, we derive a…

Machine Learning · Computer Science 2024-03-27 Julius Berner , Lorenz Richter , Karen Ullrich

We study a problem of optimal irreversible investment and emission reduction formulated as a nonzero-sum dynamic game between an investor with environmental preferences and a firm. The game is set in continuous time on an infinite-time…

Mathematical Finance · Quantitative Finance 2026-03-31 Tiziano De Angelis , Caio César Graciani Rodrigues , Peter Tankov

In the framework of stochastic zero-sum differential games, we establish a verification theorem, inspired by those existing in stochastic control, to provide sufficient conditions for a pair of feedback controls to form a Nash equilibrium.…

Optimization and Control · Mathematics 2025-10-15 Carlo Ciccarella , Francesco Russo

This paper establishes that a class of $N$-player stochastic games with singular controls, either of bounded velocity or of finite variation, can both be approximated by mean field games (MFGs) with singular controls of bounded velocity.…

Optimization and Control · Mathematics 2025-09-23 Haoyang Cao , Xin Guo , Joon Seok Lee

Decoding strategies play a pivotal role in text generation for modern language models, yet a puzzling gap divides theory and practice. Surprisingly, strategies that should intuitively be optimal, such as Maximum a Posteriori (MAP), often…

Machine Learning · Computer Science 2025-05-20 Sijin Chen , Omar Hagrass , Jason M. Klusowski

We consider the problem to steer a linear dynamical system with full state observation from an initial gaussian distribution in state-space to a final one with minimum energy control. The system is stochastically driven through the control…

Systems and Control · Computer Science 2014-08-12 Yongxin Chen , Tryphon Georgiou , Michele Pavon

In this paper, we study a class of degenerate mean field game systems arising from the mean field games with H\"ormander diffusion, where the generic player may have a ``forbidden'' direction at some point. Here we prove the existence and…

Analysis of PDEs · Mathematics 2023-08-22 Yiming Jiang , Jingchuang Ren , Yawei Wei , Jie Xue

A finite horizon optimal stopping problem for an infinite dimensional diffusion $X$ is analyzed by means of variational techniques. The diffusion is driven by a SDE on a Hilbert space $\mathcal{H}$ with a non-linear diffusion coefficient…

Optimization and Control · Mathematics 2015-02-03 M. B. Chiarolla , T. De Angelis

We introduce and study a class of infinite-horizon non-zero-sum non-cooperative stochastic games with infinitely many interacting agents using ideas of statistical mechanics. First we show, in the general case of asymmetric interactions,…

Probability · Mathematics 2007-08-16 Emilio De Santis , Carlo Marinelli

We analyze the continuous time zero-sum and cooperative controller-stopper games of Karatzas and Sudderth [Annals of Probability, 2001], Karatzas and Zamfirescu [Annals of Probability, 2008] and Karatzas and Zamfirescu [Applied Mathematics…

Optimization and Control · Mathematics 2017-11-16 Erhan Bayraktar , Jiaqi Li

We study a stochastic differential game with $N$ competitive players in a linear-quadratic framework with ergodic cost, where $d$-dimensional diffusion processes govern the state dynamics with an unknown common drift (matrix). Assuming a…

Optimization and Control · Mathematics 2026-01-30 Asaf Cohen , Ruolan He , Yuqiong Wang
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