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In this paper, we study the finite-horizon problem of an economic agent's optimal consumption, investment, and job-switching decisions. The key new feature of our model is that the job-switching cost is time-varying. This extension leads to…

Optimization and Control · Mathematics 2026-03-10 Gugyum Ha , Junkee Jeon , Jihoon Ok

If a financial asset's price movement impacts a firm's product demand, the firm can respond to the impact by adjusting its operational decisions. For example, in the automotive industry, car makers decrease the selling prices of…

Risk Management · Quantitative Finance 2023-06-22 Liao Wang , Jin Yao , Xiaowei Zhang

In recent years, the application of generative artificial intelligence (GenAI) in financial analysis and investment decision-making has gained significant attention. However, most existing approaches rely on single-agent systems, which fail…

Artificial Intelligence · Computer Science 2024-11-08 Xuewen Han , Neng Wang , Shangkun Che , Hongyang Yang , Kunpeng Zhang , Sean Xin Xu

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 deals with optimal policy learning (OPL) with observational data, i.e. data-driven optimal decision-making, in multi-action (or multi-arm) settings, where a finite set of decision options is available. It is organized in three…

Machine Learning · Statistics 2024-04-01 Giovanni Cerulli

In this work we study a finite horizon optimal liquidation problem with multiplicative price impact in algorithmic trading, using market orders. We analyze the case when an agent is trading on a market with two financial assets, whose…

Optimization and Control · Mathematics 2020-10-07 Riccardo Cesari , Harry Zheng

We consider a multihypothesis social learning problem in which an agent has access to a set of private observations and chooses an opinion from a set of experts to incorporate into its final decision. To model individual biases, we allow…

Information Theory · Computer Science 2015-06-19 Wee Peng Tay

The aim of this paper is to study a new methodological framework for systemic risk measures by applying deep learning method as a tool to compute the optimal strategy of capital allocations. Under this new framework, systemic risk measures…

Mathematical Finance · Quantitative Finance 2022-07-05 Yichen Feng , Ming Min , Jean-Pierre Fouque

In the impartial selection problem, a subset of agents up to a fixed size $k$ among a group of $n$ is to be chosen based on votes cast by the agents themselves. A selection mechanism is impartial if no agent can influence its own chance of…

Computer Science and Game Theory · Computer Science 2024-08-06 Javier Cembrano , Svenja M. Griesbach , Maximilian J. Stahlberg

Many high-stake decisions follow an expert-in-loop structure in that a human operator receives recommendations from an algorithm but is the ultimate decision maker. Hence, the algorithm's recommendation may differ from the actual decision…

Human-Computer Interaction · Computer Science 2025-01-08 Julien Grand-Clément , Jean Pauphilet

In portfolio optimization problems, the minimum expected investment risk is not always smaller than the expected minimal investment risk. That is, using a well-known approach from operations research, it is possible to derive a strategy…

Portfolio Management · Quantitative Finance 2016-12-15 Takashi Shinzato

We investigate the matching of agents to resources in a computational ecology configured to present heterogeneous resource patches to evolving, neurally controlled agents. We repeatedly find a nearly optimal, ideal free distribution (IFD)…

Populations and Evolution · Quantitative Biology 2011-12-16 Virgil Griffith , Larry S. Yaeger

In this paper, we propose a distributed off-policy actor critic method to solve multi-agent reinforcement learning problems. Specifically, we assume that all agents keep local estimates of the global optimal policy parameter and update…

Machine Learning · Computer Science 2019-03-25 Yan Zhang , Michael M. Zavlanos

Inverse Reinforcement Learning (IRL) techniques deal with the problem of deducing a reward function that explains the behavior of an expert agent who is assumed to act optimally in an underlying unknown task. In several problems of…

Machine Learning · Computer Science 2024-01-09 Riccardo Poiani , Gabriele Curti , Alberto Maria Metelli , Marcello Restelli

In this paper, we investigate dynamic optimization problems featuring both stochastic control and optimal stopping in a finite time horizon. The paper aims to develop new methodologies, which are significantly different from those of mixed…

Portfolio Management · Quantitative Finance 2014-06-27 Xiongfei Jian , Xun Li , Fahuai Yi

Selective prediction, where a model has the option to abstain from making a decision, is crucial for machine learning applications in which mistakes are costly. In this work, we focus on distributional regression and introduce a framework…

Statistics Theory · Mathematics 2025-04-01 Ahmed Zaoui , Clément Dombry

We study the optimal asset allocation problem for a fund manager whose compensation depends on the performance of her portfolio with respect to a benchmark. The objective of the manager is to maximise the expected utility of her final…

Portfolio Management · Quantitative Finance 2020-11-17 Flavio Angelini , Katia Colaneri , Stefano Herzel , Marco Nicolosi

In this paper we formulate and study an optimal switching problem under partial information. In our model the agent/manager/investor attempts to maximize the expected reward by switching between different states/investments. However, he is…

Optimization and Control · Mathematics 2014-03-10 Kai Li , Kaj Nyström , Marcus Olofsson

Value decomposition (VD) has become one of the most prominent solutions in cooperative multi-agent reinforcement learning. Most existing methods generally explore how to factorize the joint value and minimize the discrepancies between agent…

Multiagent Systems · Computer Science 2025-02-06 Siying Wang , Yang Zhou , Zhitong Zhao , Ruoning Zhang , Jinliang Shao , Wenyu Chen , Yuhua Cheng

This work develops a fully decentralized multi-agent algorithm for policy evaluation. The proposed scheme can be applied to two distinct scenarios. In the first scenario, a collection of agents have distinct datasets gathered following…

Machine Learning · Computer Science 2019-08-13 Lucas Cassano , Kun Yuan , Ali H. Sayed