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We study whether a risk-sensitive objective from asset-pricing theory -- recursive utility -- improves reinforcement learning for portfolio allocation. The Bellman equation under recursive utility involves a certainty equivalent (CE) of…

General Finance · Quantitative Finance 2026-03-25 Minkey Chang

Artificial intelligence is transforming financial investment decision-making frameworks, with deep reinforcement learning demonstrating substantial potential in robo-advisory applications. This paper addresses the limitations of traditional…

Portfolio Management · Quantitative Finance 2025-02-24 Gang Huang , Xiaohua Zhou , Qingyang Song

Deep Reinforcement Learning (DRL) has become a popular method for solving control problems in power systems. Conventional DRL encourages the agent to explore various policies encoded in a neural network (NN) with the goal of maximizing the…

Systems and Control · Electrical Eng. & Systems 2024-10-28 Tong Wu , Anna Scaglione , Daniel Arnold

In modern financial markets, investors increasingly seek personalized and adaptive portfolio strategies that reflect their individual risk preferences and respond to dynamic market conditions. Traditional rule-based or static optimization…

Machine Learning · Computer Science 2025-12-16 Bangyu Li , Boping Gu , Ziyang Ding

In this work, we propose a deep reinforcement learning (DRL) based reactive planner to solve large-scale Lidar-based autonomous robot exploration problems in 2D action space. Our DRL-based planner allows the agent to reactively plan its…

Robotics · Computer Science 2024-03-19 Yuhong Cao , Rui Zhao , Yizhuo Wang , Bairan Xiang , Guillaume Sartoretti

The deep reinforcement learning (DRL) based Volt-VAR optimization (VVO) methods have been widely studied for active distribution networks (ADNs). However, most of them lack safety guarantees in terms of power injection uncertainties due to…

Systems and Control · Electrical Eng. & Systems 2024-09-30 Zhengrong Chen , Siyao Cai , A. P. Sakis Meliopoulos

Many real-world applications can be formulated as multi-agent cooperation problems, such as network packet routing and coordination of autonomous vehicles. The emergence of deep reinforcement learning (DRL) provides a promising approach for…

Multiagent Systems · Computer Science 2022-06-28 Zhixuan Liang , Jiannong Cao , Shan Jiang , Divya Saxena , Huafeng Xu

Reinforcement learning (RL) is gaining attention by more and more researchers in quantitative finance as the agent-environment interaction framework is aligned with decision making process in many business problems. Most of the current…

Mathematical Finance · Quantitative Finance 2022-05-31 Huifang Huang , Ting Gao , Yi Gui , Jin Guo , Peng Zhang

The wall cycle in wall-bounded turbulent flows is a complex turbulence regeneration mechanism that remains not fully understood. This study explores the potential of deep reinforcement learning (DRL) for managing the wall regeneration cycle…

Fluid Dynamics · Physics 2024-10-21 Giorgio Maria Cavallazzi , Luca Guastoni , Ricardo Vinuesa , Alfredo Pinelli

Automated driving in urban settings is challenging. Human participant behavior is difficult to model, and conventional, rule-based Automated Driving Systems (ADSs) tend to fail when they face unmodeled dynamics. On the other hand, the more…

Artificial Intelligence · Computer Science 2020-05-20 Ekim Yurtsever , Linda Capito , Keith Redmill , Umit Ozguner

Deep reinforcement learning (DRL) has emerged as a pervasive and potent methodology for addressing artificial intelligence challenges. Due to its substantial potential for autonomous self-learning and self-improvement, DRL finds broad…

Artificial Intelligence · Computer Science 2023-10-10 Teng Liu , Yuyou Yang , Wenxuan Xiao , Xiaolin Tang , Mingzhu Yin

This paper proposes an adaptive energy management strategy for hybrid electric vehicles by combining deep reinforcement learning (DRL) and transfer learning (TL). This work aims to address the defect of DRL in tedious training time. First,…

Signal Processing · Electrical Eng. & Systems 2020-07-20 Xiaowei Guo , Teng Liu , Bangbei Tang , Xiaolin Tang , Jinwei Zhang , Wenhao Tan , Shufeng Jin

This paper investigates the application of Deep Reinforcement Learning (DRL) to classical inventory management problems, with a focus on practical implementation considerations. We apply a DRL algorithm based on DirectBackprop to several…

We study the dynamic pricing and replenishment problems under inconsistent decision frequencies. Different from the traditional demand assumption, the discreteness of demand and the parameter within the Poisson distribution as a function of…

Machine Learning · Computer Science 2024-10-29 Yi Zheng , Zehao Li , Peng Jiang , Yijie Peng

This paper presents a novel hierarchical framework for portfolio optimization, integrating lightweight Large Language Models (LLMs) with Deep Reinforcement Learning (DRL) to combine sentiment signals from financial news with traditional…

Computation and Language · Computer Science 2025-08-01 Baptiste Lefort , Eric Benhamou , Beatrice Guez , Jean-Jacques Ohana , Ethan Setrouk , Alban Etienne

Plastic injection molding remains essential to modern manufacturing. However, optimizing process parameters to balance product quality and profitability under dynamic environmental and economic conditions remains a persistent challenge.…

Artificial Intelligence · Computer Science 2025-05-19 Joon-Young Kim , Jecheon Yu , Heekyu Kim , Seunghwa Ryu

Artificially intelligent agents equipped with strategic skills that can negotiate during their interactions with other natural or artificial agents are still underdeveloped. This paper describes a successful application of Deep…

Artificial Intelligence · Computer Science 2015-11-28 Heriberto Cuayáhuitl , Simon Keizer , Oliver Lemon

Crafting effective reward signals remains a central challenge in Reinforcement Learning (RL), especially for complex reasoning tasks. Existing automated reward optimization methods typically rely on derivative-free search heuristics that…

Artificial Intelligence · Computer Science 2026-05-14 Sitao Cheng , Tianle Li , Xuhan Huang , Xunjian Yin , Difan Zou

Existing methods for optimal control struggle to deal with the complexity commonly encountered in real-world systems, including dimensionality, process error, model bias and data heterogeneity. Instead of tackling these system complexities…

Machine Learning · Computer Science 2024-03-05 Felipe Montealegre-Mora , Marcus Lapeyrolerie , Melissa Chapman , Abigail G. Keller , Carl Boettiger

We proposed a new Portfolio Management method termed as Robust Log-Optimal Strategy (RLOS), which ameliorates the General Log-Optimal Strategy (GLOS) by approximating the traditional objective function with quadratic Taylor expansion. It…

Portfolio Management · Quantitative Finance 2018-05-02 Yifeng Guo , Xingyu Fu , Yuyan Shi , Mingwen Liu