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Robust optimization is a tractable and expressive technique for decision-making under uncertainty, but it can lead to overly conservative decisions when pessimistic assumptions are made on the uncertain parameters. Wasserstein…

Optimization and Control · Mathematics 2026-04-07 Irina Wang , Cole Becker , Bart Van Parys , Bartolomeo Stellato

In this paper, we consider a distributionally robust resource planning model inspired by a real-world service industry problem. In this problem, there is a mixture of known demand and uncertain future demand. Prior to having full knowledge…

Optimization and Control · Mathematics 2022-07-07 Ben Black , Russell Ainslie , Trivikram Dokka , Christopher Kirkbride

Offline reinforcement learning aims to learn from pre-collected datasets without active exploration. This problem faces significant challenges, including limited data availability and distributional shifts. Existing approaches adopt a…

Machine Learning · Computer Science 2024-10-01 Yue Wang , Jinjun Xiong , Shaofeng Zou

Accounting for model uncertainty in risk management and option pricing leads to infinite dimensional optimization problems which are both analytically and numerically intractable. In this article we study when this hurdle can be overcome…

Risk Management · Quantitative Finance 2020-01-16 Daniel Bartl , Samuel Drapeau , Ludovic Tangpi

Established approaches to obtain generalization bounds in data-driven optimization and machine learning mostly build on solutions from empirical risk minimization (ERM), which depend crucially on the functional complexity of the hypothesis…

Optimization and Control · Mathematics 2022-10-14 Yibo Zeng , Henry Lam

The effects of treatments are often heterogeneous, depending on the observable characteristics, and it is necessary to exploit such heterogeneity to devise individualized treatment rules (ITRs). Existing estimation methods of such ITRs…

Econometrics · Economics 2022-08-09 Daido Kido

While solutions of Distributionally Robust Optimization (DRO) problems can sometimes have a higher out-of-sample expected reward than the Sample Average Approximation (SAA), there is no guarantee. In this paper, we introduce a class of…

Optimization and Control · Mathematics 2023-06-13 Jun-ya Gotoh , Michael Jong Kim , Andrew E. B. Lim

We consider stochastic programs conditional on some covariate information, where the only knowledge of the possible relationship between the uncertain parameters and the covariates is reduced to a finite data sample of their joint…

Optimization and Control · Mathematics 2021-11-23 Adrián Esteban-Pérez , Juan M. Morales

Performative prediction aims to model scenarios where predictive outcomes subsequently influence the very systems they target. The pursuit of a performative optimum (PO) -- minimizing performative risk -- is generally reliant on modeling of…

Machine Learning · Computer Science 2025-02-11 Songkai Xue , Yuekai Sun

We develop and analyze algorithms for distributionally robust optimization (DRO) of convex losses. In particular, we consider group-structured and bounded $f$-divergence uncertainty sets. Our approach relies on an accelerated method that…

Optimization and Control · Mathematics 2022-03-25 Yair Carmon , Danielle Hausler

We study finite-sample statistical performance guarantees for distributionally robust optimization (DRO) with optimal transport (OT) and OT-regularized divergence model neighborhoods. Specifically, we derive concentration inequalities for…

Machine Learning · Statistics 2026-03-31 Jeremiah Birrell , Xiaoxi Shen

We study two-stage distributionally robust optimization (DRO) problems with decision-dependent information discovery (DDID) wherein (a portion of) the uncertain parameters are revealed only if an (often costly) investment is made in the…

Optimization and Control · Mathematics 2025-10-07 Qing Jin , Angelos Georghiou , Phebe Vayanos , Grani A. Hanasusanto

Robust Optimization has traditionally taken a pessimistic, or worst-case viewpoint of uncertainty which is motivated by a desire to find sets of optimal policies that maintain feasibility under a variety of operating conditions. In this…

Machine Learning · Statistics 2017-11-22 Matthew Norton , Akiko Takeda , Alexander Mafusalov

A policy is said to be robust if it maximizes the reward while considering a bad, or even adversarial, model. In this work we formalize two new criteria of robustness to action uncertainty. Specifically, we consider two scenarios in which…

Machine Learning · Computer Science 2019-05-08 Chen Tessler , Yonathan Efroni , Shie Mannor

Robust Markov Decision Processes (MDPs) address environmental shift through distributionally robust optimization (DRO) by finding an optimal worst-case policy within an uncertainty set of transition kernels. However, standard DRO approaches…

Machine Learning · Statistics 2026-03-10 Akram S. Awad , Shihab Ahmed , Yue Wang , George K. Atia

A novel data-driven stochastic robust optimization (DDSRO) framework is proposed for optimization under uncertainty leveraging labeled multi-class uncertainty data. Uncertainty data in large datasets are often collected from various…

Machine Learning · Computer Science 2019-04-04 Chao Ning , Fengqi You

Dynamic real-time optimization (DRTO) is a challenging task due to the fact that optimal operating conditions must be computed in real time. The main bottleneck in the industrial application of DRTO is the presence of uncertainty. Many…

We study the out-of-sample properties of robust empirical optimization problems with smooth $\phi$-divergence penalties and smooth concave objective functions, and develop a theory for data-driven calibration of the non-negative "robustness…

Machine Learning · Statistics 2020-05-20 Jun-Ya Gotoh , Michael Jong Kim , Andrew E. B. Lim

This paper introduces the $f$-sensitivity model, a new sensitivity model that characterizes the violation of unconfoundedness in causal inference. It assumes the selection bias due to unmeasured confounding is bounded "on average"; compared…

Methodology · Statistics 2022-09-07 Ying Jin , Zhimei Ren , Zhengyuan Zhou

We study deterministic monopoly pricing under partial knowledge of the market, where the seller has access only to summary statistics of the valuation distribution, such as the mean, dispersion, and maximum value. Using tools from…

Optimization and Control · Mathematics 2025-09-09 Tim S. G. van Eck , Pieter Kleer , Johan S. H. van Leeuwaarden