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The entropic risk measure is widely used in high-stakes decision-making across economics, management science, finance, and safety-critical control systems because it captures tail risks associated with uncertain losses. However, when data…

Optimization and Control · Mathematics 2026-01-05 Utsav Sadana , Erick Delage , Angelos Georghiou

This paper aims to establish an entropy-regularized value-based reinforcement learning method that can ensure the monotonic improvement of policies at each policy update. Unlike previously proposed lower-bounds on policy improvement in…

Machine Learning · Computer Science 2020-08-26 Lingwei Zhu , Takamitsu Matsubara

A key challenge in systems biology is the elucidation of the underlying principles, or fundamental laws, which determine the cellular phenotype. Understanding how these fundamental principles are altered in diseases like cancer is important…

Molecular Networks · Quantitative Biology 2014-08-06 Andrew Teschendorff , Peter Sollich , Reimer Kuehn

We introduce a pathwise approach to analyze the relative performance of an equity portfolio with respect to a benchmark market portfolio. In this energy-entropy framework, the relative performance is decomposed into three components: a…

Portfolio Management · Quantitative Finance 2016-01-05 Soumik Pal , Ting-Kam Leonard Wong

This paper addresses the problem of utility maximization under uncertain parameters. In contrast with the classical approach, where the parameters of the model evolve freely within a given range, we constrain them via a penalty function. We…

Optimization and Control · Mathematics 2022-03-08 Ivan Guo , Nicolas Langrené , Grégoire Loeper , Wei Ning

This work studies equilibrium problems under uncertainty where firms maximize their profits in a robust way when selling their output. Robust optimization plays an increasingly important role when best guaranteed objective values are to be…

Optimization and Control · Mathematics 2022-02-24 Christian Biefel , Frauke Liers , Jan Rolfes , Lars Schewe , Gregor Zöttl

The entropic value-at-risk (EVaR) is a new coherent risk measure, which is an upper bound for both the value-at-risk (VaR) and conditional value-at-risk (CVaR). As important properties, the EVaR is strongly monotone over its domain and…

Portfolio Management · Quantitative Finance 2020-04-17 Amir Ahmadi-Javid , Malihe Fallah-Tafti

Contemporary AI regulation, including the EU Artificial Intelligence Act and related governance frameworks, increasingly requires institutions to justify the training data used in automated decision-making. Yet existing governance regimes…

Computers and Society · Computer Science 2026-03-02 A. Talha Yalta , A. Yasemin Yalta

High level declarative constraints provide a powerful (and popular) way to define and construct control policies; however, most synthesis algorithms do not support specifying the degree of randomness (unpredictability) of the resulting…

Robotics · Computer Science 2021-06-30 Marcell Vazquez-Chanlatte , Sebastian Junges , Daniel J. Fremont , Sanjit Seshia

With the rise of emerging risks, model uncertainty poses a fundamental challenge in the insurance industry, making robust pricing a first-order question. This paper investigates how insurers' robustness preferences shape competitive…

Risk Management · Quantitative Finance 2025-10-20 Shunzhi Pang

This paper presents a groundbreaking self-improving interference management framework tailored for wireless communications, integrating deep learning with uncertainty quantification to enhance overall system performance. Our approach…

Machine Learning · Computer Science 2024-01-25 Hyun-Suk Lee , Do-Yup Kim , Kyungsik Min

The increased integration of intermittent and decentralised forms of power production has eroded the stability margins of power grids and made it more challenging to ensure reliable and secure power transmission. Reliable grid operation…

Optimization and Control · Mathematics 2023-01-27 John M. Moloney , Sam J. Williamson , Cameron L. Hall

Classical mean-variance portfolio theory tells us how to construct a portfolio of assets which has the greatest expected return for a given level of return volatility. Utility theory then allows an investor to choose the point along this…

Portfolio Management · Quantitative Finance 2009-09-21 Alex Dannenberg

This paper bridges reinforcement learning (RL) and risk-sensitive stochastic control by introducing a tractable exploration mechanism for policy search in risk-sensitive portfolio management, with known and unknown model parameters, that…

Portfolio Management · Quantitative Finance 2026-03-03 Sebastien Lleo , Wolfgang Runggaldier

It has been recognized that the diversity of base learners is of utmost importance to a good ensemble. This paper defines a novel measurement of diversity, termed as exclusivity. With the designed exclusivity, we further propose an ensemble…

Machine Learning · Computer Science 2016-05-17 Xiaojie Guo

In this paper, we present a unified framework for decision making under uncertainty. Our framework is based on the composite of two risk measures, where the inner risk measure accounts for the risk of decision given the exact distribution…

Optimization and Control · Mathematics 2015-01-07 Pengyu Qian , Zizhuo Wang , Zaiwen Wen

Randomized smoothing (RS) is a well known certified defense against adversarial attacks, which creates a smoothed classifier by predicting the most likely class under random noise perturbations of inputs during inference. While initial work…

Machine Learning · Computer Science 2023-04-21 Soumalya Nandi , Sravanti Addepalli , Harsh Rangwani , R. Venkatesh Babu

This dissertation makes three main contributions. First, We identify a new connection between policy gradient and dynamic programming in MMDPs and propose the Coordinate Ascent Dynamic Programming (CADP) algorithm to compute a Markov policy…

Machine Learning · Computer Science 2025-10-21 Xihong Su

In the Bayesian reinforcement learning (RL) setting, a prior distribution over the unknown problem parameters -- the rewards and transitions -- is assumed, and a policy that optimizes the (posterior) expected return is sought. A common…

Machine Learning · Computer Science 2021-09-27 Aviv Tamar , Daniel Soudry , Ev Zisselman

This paper studies a continuous-time portfolio selection problem under a general distribution of random risk aversion (RRA). We provide a complete characterization of all deterministic equilibrium strategies in closed form. Our results show…

Mathematical Finance · Quantitative Finance 2026-02-02 Weilun Cheng , Zongxia Liang , Sheng Wang , Jianming Xia