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The main objective of this paper is to develop a martingale-type solution to optimal consumption--investment choice problems ([Merton, 1969] and [Merton, 1971]) under time-varying incomplete preferences driven by externalities such as…

Mathematical Finance · Quantitative Finance 2025-01-14 Weixuan Xia

We consider qualitative strategy synthesis for the formalism called consumption Markov decision processes. This formalism can model dynamics of an agents that operates under resource constraints in a stochastic environment. The presented…

Artificial Intelligence · Computer Science 2021-05-06 František Blahoudek , Petr Novotný , Melkior Ornik , Pranay Thangeda , Ufuk Topcu

This paper considers consumption and portfolio optimization problems with recursive preferences in both infinite and finite time regions. Specially, the financial market consists of a risk-free asset and a risky asset that follows a general…

Optimization and Control · Mathematics 2024-12-30 Jian-hao Kang , Zhun Gou , Nan-jing Huang

We consider a control problem involving several agents coupled through multiple unit-demand resources. Such resources are indivisible, and each agent's consumption is modeled as a Bernoulli random variable. Controlling the number of such…

Systems and Control · Computer Science 2019-04-30 Syed Eqbal Alam , Robert Shorten , Fabian Wirth , Jia Yuan Yu

Choice modeling is at the core of understanding how changes to the competitive landscape affect consumer choices and reshape market equilibria. In this paper, we propose a fundamental characterization of choice functions that encompasses a…

Econometrics · Economics 2024-02-21 Amandeep Singh , Ye Liu , Hema Yoganarasimhan

We study the problem of minimizing the resource capacity of autonomous agents cooperating to achieve a shared task. More specifically, we consider high-level planning for a team of homogeneous agents that operate under resource constraints…

Multiagent Systems · Computer Science 2021-05-05 Murat Cubuktepe , František Blahoudek , Ufuk Topcu

Frequency non-selective time-selective multiple access channels in which transmitters can freely choose their power control policy are considered. The individual objective of the transmitters is to maximize their averaged energy-efficiency.…

Computer Science and Game Theory · Computer Science 2011-07-22 François Mériaux , Maël Le Treust , Samson Lasaulce , Michel Kieffer

When an individual's behavior has rational characteristics, this may lead to irrational collective actions for the group. A wide range of organisms from animals to humans often evolve the social attribute of cooperation to meet this…

Multiagent Systems · Computer Science 2021-11-18 Zhenbo Cheng , Xingguang Liu , Leilei Zhang , Hangcheng Meng , Qin Li , Xiao Gang

We solve the binary decision model of Brock and Durlauf in time using a method reliant on the resolvent of the master operator of the stochastic process. Our solution is valid when not at equilibrium and can be used to exemplify…

Theoretical Economics · Economics 2022-10-12 James Holehouse , Hector Pollitt

We consider the problem of online learning of optimal control for repeatedly operated systems in the presence of parametric uncertainty. During each round of operation, environment selects system parameters according to a fixed but unknown…

Machine Learning · Computer Science 2016-09-20 Theja Tulabandhula

We propose martingale consumption as a natural, desirable consumption pattern for any given (proportional) investment strategy. The idea is to always adjust current consumption so as to achieve level expected future consumption under the…

Mathematical Finance · Quantitative Finance 2025-05-28 Peter Holm Nielsen

Model predictive control is an advanced control approach for multivariable systems with constraints, which is reliant on an accurate dynamic model. Most real dynamic models are however affected by uncertainties, which can lead to…

Optimization and Control · Mathematics 2021-03-10 E. Bradford , L. Imsland

Achieving a just and sustainable transition requires the pursuit of multiple social and environmental targets. Two primary barriers impede this process: (1) targets are often in conflict with each other, and (2) policies aimed at these…

We consider a constrained hierarchical opinion dynamics in the case of leaders' competition and with complete information among leaders. Each leaders' group tries to drive the followers' opinion towards a desired state accordingly to a…

Optimization and Control · Mathematics 2017-12-12 Giacomo Albi , Lorenzo Pareschi , Mattia Zanella

In repeated-game applications where both the collusive and non-collusive outcomes can be supported as equilibria, researchers must resolve underlying selection questions if theory will be used to understand counterfactual policies. One…

General Economics · Economics 2021-01-18 Emanuel Vespa , Taylor Weidman , Alistair J. Wilson

The mean-field dynamics of a collection of stochastic agents with local versus nonlocal interactions is studied via analytically soluble models. The nonlocal interactions result from a barycentric modulation of the observation range of the…

Adaptation and Self-Organizing Systems · Physics 2012-06-01 Max-Olivier Hongler , Roger Filliger , Olivier Gallay

Finding a good compromise between the exploitation of known resources and the exploration of unknown, but potentially more profitable choices, is a general problem, which arises in many different scientific disciplines. We propose a…

Disordered Systems and Neural Networks · Physics 2016-10-28 Thomas Gueudré , Alexander Dobrinevski , Jean-Philippe Bouchaud

We study a multiscale approach for the control of agent-based, two-population models. The control variable acts over one population of leaders, which influence the population of followers via the coupling generated by their interaction. We…

Optimization and Control · Mathematics 2018-03-02 Giacomo Albi , Dante Kalise

We study an optimal-control problem of polling systems with large switchover times, when a holding cost is incurred on the queues. In particular, we consider a stochastic network with a single server that switches between several buffers…

Probability · Mathematics 2020-09-01 Yue Hu , Jing Dong , Ohad Perry

This paper considers the problem of designing time-dependent, real-time control policies for controllable nonlinear diffusion processes, with the goal of obtaining maximally-informative observations about parameters of interest. More…

Methodology · Statistics 2014-10-16 Giles Hooker , Kevin K. Lin , Bruce Rogers