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In financial markets marked by inherent volatility, extreme events can result in substantial investor losses. This paper proposes a portfolio strategy designed to mitigate extremal risks. By applying extreme value theory, we evaluate the…

Portfolio Management · Quantitative Finance 2024-09-20 Qian Hui , Tiandong Wang

In this perspective, we introduce recent research into the structure and function of complex investor networks supporting sustainability efforts. Using the case of solar, wind and hydro energy technologies, this perspective explores the…

Physics and Society · Physics 2023-09-29 Alexander P. Kartun-Giles , Nadia Ameli

Empirical risk minimization (ERM) and distributionally robust optimization (DRO) are popular approaches for solving stochastic optimization problems that appear in operations management and machine learning. Existing generalization error…

Optimization and Control · Mathematics 2023-09-26 Garud Iyengar , Henry Lam , Tianyu Wang

The question if a given partial solution to a problem can be extended reasonably occurs in many algorithmic approaches for optimization problems. For instance, when enumerating minimal dominating sets of a graph $G=(V,E)$, one usually…

Computational Complexity · Computer Science 2018-10-11 Katrin Casel , Henning Fernau , Mehdi Khosravian Ghadikolaei , Jérôme Monnot , Florian Sikora

Social and real-world considerations such as robustness, fairness, social welfare and multi-agent tradeoffs have given rise to multi-distribution learning paradigms, such as collaborative learning, group distributionally robust…

Machine Learning · Computer Science 2024-04-04 Nika Haghtalab , Michael I. Jordan , Eric Zhao

Economic evaluations from individual-level data are an important component of the process of technology appraisal, with a view to informing resource allocation decisions. A critical problem in these analyses is that both effectiveness and…

Applications · Statistics 2018-02-01 Andrea Gabrio , Alexina J. Mason , Gianluca Baio

Network diversity yields context-dependent benefits that are not yet fully-understood. I elaborate on a recently introduced distinction between tie strength diversity and information source diversity, and explain when, how, and why they…

Social and Information Networks · Computer Science 2013-04-03 Jeroen Bruggeman

The relationships between diversity, productivity and scale determine much of the structure and robustness of complex biological and social systems. While arguments for the link between specialization and productivity are common, diversity…

Physics and Society · Physics 2014-06-24 Luís M. A. Bettencourt , Horacio Samaniego , HyeJin Youn

The operation of industrial facilities is a broad field for optimization. Industrial plants are often a) composed of several components, b) linked using network technology, c) physically interconnected and d) complex regarding the effect of…

Systems and Control · Electrical Eng. & Systems 2022-06-30 Gregor Thiele , Theresa Johanni , David Sommer , Jörg Krüger

We revisit the problem of large-scale assortment optimization under the multinomial logit choice model without any assumptions on the structure of the feasible assortments. Scalable real-time assortment optimization has become essential in…

Optimization and Control · Mathematics 2018-05-02 Deeksha Sinha , Theja Tulabandhula

Network or graph structures are ubiquitous in the study of complex systems. Often, we are interested in complexity trends of these system as it evolves under some dynamic. An example might be looking at the complexity of a food web as…

Information Theory · Computer Science 2007-07-16 Russell K. Standish

Any optimization algorithm based on the risk parity approach requires the formulation of portfolio total risk in terms of marginal contributions. In this paper we use the independence of the underlying factors in the market to derive the…

Risk Management · Quantitative Finance 2014-09-30 Lorenzo Mercuri , Edit Rroji

This paper surveys the primary computational hurdles of Energy Systems optimization coming from different sources: model-induced complexity, optimization algorithm requirements, and uncertainties handling (both aleatoric and epistemic).…

We study a utility maximization problem in a financial market with a stochastic drift process, combining a worst-case approach with filtering techniques. Drift processes are difficult to estimate from asset prices, and at the same time…

Portfolio Management · Quantitative Finance 2021-11-04 Jörn Sass , Dorothee Westphal

An important new trend in additive manufacturing is the use of optimization to automatically design industrial objects, such as beams, rudders or wings. Topology optimization, as it is often called, computes the best configuration of…

The increasing interest in complex networks research has been a consequence of several intrinsic features of this area, such as the generality of the approach to represent and model virtually any discrete system, and the incorporation of…

We propose a tractable unified framework to study the evolution and interaction of model-misspecification concerns and complexity aversion in repeated decision problems. This aims to capture environments where decision makers worry that…

Theoretical Economics · Economics 2026-02-18 Drew Fudenberg , Florian Mudekereza

We consider a matrix completion problem that exploits social or item similarity graphs as side information. We develop a universal, parameter-free, and computationally efficient algorithm that starts with hierarchical graph clustering and…

Machine Learning · Statistics 2022-01-06 Adel Elmahdy , Junhyung Ahn , Changho Suh , Soheil Mohajer

The optimization of functions to find the best solution according to one or several objectives has a central role in many engineering and research fields. Recently, a new family of optimization algorithms, named Quality-Diversity…

Neural and Evolutionary Computing · Computer Science 2017-08-31 Antoine Cully , Yiannis Demiris

Differential equations (DE) constrained optimization plays a critical role in numerous scientific and engineering fields, including energy systems, aerospace engineering, ecology, and finance, where optimal configurations or control…

Machine Learning · Computer Science 2024-10-03 Vincenzo Di Vito , Mostafa Mohammadian , Kyri Baker , Ferdinando Fioretto