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We address the problem of combined stochastic and impulse control for a market maker operating in a limit order book. The problem is formulated as a Hamilton-Jacobi-Bellman quasi-variational inequality (HJBQVI). We propose an implicit…

Mathematical Finance · Quantitative Finance 2025-12-25 Alexey Meteykin

We propose a neural network approach that yields approximate solutions for high-dimensional optimal control problems and demonstrate its effectiveness using examples from multi-agent path finding. Our approach yields controls in a feedback…

Optimization and Control · Mathematics 2022-06-29 Derek Onken , Levon Nurbekyan , Xingjian Li , Samy Wu Fung , Stanley Osher , Lars Ruthotto

The aim of this work is to develop a deep learning method for solving high-dimensional stochastic control problems based on the Hamilton--Jacobi--Bellman (HJB) equation and physics-informed learning. Our approach is to parameterize the…

Optimization and Control · Mathematics 2025-06-23 Zhe Jiao , Wantao Jia , Weiqiu Zhu

This work introduces an online Bayesian game-theoretic method for behavior identification in multi-agent dynamical systems. By casting Hamilton-Jacobi-Bellman optimality conditions as linear-in-parameter residuals, the method enables fast…

Systems and Control · Electrical Eng. & Systems 2026-01-09 Francesco Bianchin , Robert Lefringhausen , Sandra Hirche

In this paper we study the optimization problem of an economic agent who chooses a job and the time of retirement as well as consumption and portfolio of assets. The agent is constrained in the ability to borrow against future income. We…

Optimization and Control · Mathematics 2021-07-28 Junkee Jeon , Hyeng Keun Koo

In this paper, we propose Q-learning algorithms for continuous-time deterministic optimal control problems with Lipschitz continuous controls. Our method is based on a new class of Hamilton-Jacobi-Bellman (HJB) equations derived from…

Machine Learning · Computer Science 2020-10-28 Jeongho Kim , Jaeuk Shin , Insoon Yang

This paper presents a mathematical formulation to perform temporal parallelisation of continuous-time optimal control problems, which can be solved via the Hamilton--Jacobi--Bellman (HJB) equation. We divide the time interval of the control…

Optimization and Control · Mathematics 2024-12-18 Simo Särkkä , Ángel F. García-Fernández

We consider a time-consistent mean-variance portfolio selection problem of an insurer and allow for the incorporation of basis (mortality) risk. The optimal solution is identified with a Nash subgame perfect equilibrium. We characterize an…

Portfolio Management · Quantitative Finance 2019-08-16 Frank Bosserhoff , Mitja Stadje

This paper is concerned with a stochastic recursive optimal control problem with time delay, where the controlled system is described by a stochastic differential delayed equation (SDDE) and the cost functional is formulated as the solution…

Optimization and Control · Mathematics 2014-08-26 Jingtao Shi , Huanshui Zhang

For continuous systems modeled by dynamical equations such as ODEs and SDEs, Bellman's Principle of Optimality takes the form of the Hamilton-Jacobi-Bellman (HJB) equation, which provides the theoretical target of reinforcement learning…

Machine Learning · Computer Science 2025-10-28 Haruki Settai , Naoya Takeishi , Takehisa Yairi

We study an optimal execution problem in a continuous-time market model that considers market impact. We formulate the problem as a stochastic control problem and investigate properties of the corresponding value function. We find that…

Trading and Market Microstructure · Quantitative Finance 2014-12-16 Takashi Kato

In this paper, we consider a problem of contract theory in which several Principals hire a common Agent and we study the model in the continuous time setting. We show that optimal contracts should satisfy some equilibrium conditions and we…

Optimization and Control · Mathematics 2018-01-15 Thibaut Mastrolia , Zhenjie Ren

We study the optimal investment-consumption problem for a member of defined contribution plan during the decumulation phase. For a fixed annuitization time, to achieve higher final annuity, we consider a variable consumption rate. Moreover,…

Portfolio Management · Quantitative Finance 2020-08-18 Hassan Dadashi

This paper studies optimal consensus tracking problem of heterogeneous linear multi-agent systems. By introducing tracking error dynamics, the optimal tracking problem is reformulated as finding a Nash-equilibrium solution of a multi-player…

Optimization and Control · Mathematics 2019-05-21 Jilie Zhang , Zhanshan Wang , Hongwei Zhang

An optimal control problem is considered for a stochastic differential equation with the cost functional determined by a backward stochastic Volterra integral equation (BSVIE, for short). This kind of cost functional can cover the general…

Optimization and Control · Mathematics 2019-11-13 Hanxiao Wang , Jiongmin Yong

In a multi-agent system, an agent's optimal policy will typically depend on the policies chosen by others. Therefore, a key issue in multi-agent systems research is that of predicting the behaviours of others, and responding promptly to…

Multiagent Systems · Computer Science 2019-10-22 Dongge Han , Wendelin Boehmer , Michael Wooldridge , Alex Rogers

Existing reinforcement learning (RL) methods struggle with complex dynamical systems that demand interactions at high frequencies or irregular time intervals. Continuous-time RL (CTRL) has emerged as a promising alternative by replacing…

Machine Learning · Computer Science 2026-02-20 Xuefeng Wang , Lei Zhang , Henglin Pu , Ahmed H. Qureshi , Husheng Li

Continuous-time reinforcement learning offers an appealing formalism for describing control problems in which the passage of time is not naturally divided into discrete increments. Here we consider the problem of predicting the distribution…

Machine Learning · Computer Science 2022-06-20 Harley Wiltzer , David Meger , Marc G. Bellemare

In the present paper, we study the optimal execution problem under stochastic price recovery based on limit order book dynamics. We model price recovery after execution of a large order by accelerating the arrival of the refilling order,…

Trading and Market Microstructure · Quantitative Finance 2015-02-17 Masashi Ieda

We study the problem of dynamically trading futures in a regime-switching market. Modeling the underlying asset price as a Markov-modulated diffusion process, we present a utility maximization approach to determine the optimal futures…

Portfolio Management · Quantitative Finance 2019-10-16 Tim Leung , Yang Zhou