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This paper studies {a} mixed singular/switching stochastic control problem for a multidimensional diffusion with multiples regimes on a bounded domain. Using probabilistic, partial differential equation (PDE) and penalization techniques, we…

Optimization and Control · Mathematics 2020-10-13 Mark Kelbert , Harold A. Moreno-Franco

We present a new formulation for the computation of solutions of a class of Hamilton Jacobi Bellman (HJB) equations on closed smooth surfaces of co-dimension one. For the class of equations considered in this paper, the viscosity solution…

Numerical Analysis · Mathematics 2020-08-06 Lindsay Martin , Richard Tsai

In this paper, we study the optimal singular controls for stochastic recursive systems, in which the control has two components: the regular control, and the singular control. Under certain assumptions, we establish the dynamic programming…

Optimization and Control · Mathematics 2018-11-06 Liangquan Zhang

This paper studies an optimal dividend problem with a drawdown constraint in a Brownian motion model, requiring the dividend payout rate to remain above a fixed proportion of its historical maximum. This leads to a path-dependent stochastic…

Mathematical Finance · Quantitative Finance 2026-01-08 Chonghu Guan , Jiacheng Fan , Zuo Quan Xu

This paper is devoted to the stochastic optimal control problem of infinite-dimensional differential systems allowing for both path-dependence and measurable randomness. As opposed to the deterministic path-dependent cases studied by…

Optimization and Control · Mathematics 2023-07-19 Jinniao Qiu , Yang Yang

This paper investigates the optimal control problem for a class of parabolic equations where the diffusion coefficient is influenced by a control function acting nonlocally. Specifically, we consider the optimization of a cost functional…

Optimization and Control · Mathematics 2025-03-11 Stefana-Lucia Anita , Luca Di Persio

We study a class of optimal control problems with state constraints where the state equation is a differential equation with delays. This class includes some problems arising in economics, in particular the so-called models with time to…

Optimization and Control · Mathematics 2009-07-09 Salvatore Federico , Ben Goldys , Fausto Gozzi

We consider the optimal dividend problem in the so-called degenerate bivariate risk model under the assumption that the surplus of one branch may become negative. More specific, we solve the stochastic control problem of maximizing…

Probability · Mathematics 2022-08-02 Philipp Lukas Strietzel , Henriette Elisabeth Heinrich

In this paper, we extend the jump-diffusion model proposed by Davis and Lleo to include jumps in asset prices as well as valuation factors. The criterion, following earlier work by Bielecki, Pliska, Nagai and others, is risk-sensitive…

Portfolio Management · Quantitative Finance 2010-03-15 Mark Davis , Sebastien Lleo

We consider an optimal control problem for a linear stochastic integro-diffe\-rential equation with conic constraints on the phase variable and the control of singular-regular type. Our setting includes consumption-investment problems for…

Optimization and Control · Mathematics 2015-01-20 Dimitri De Vallière , Yuri Kabanov , Emmanuel Lépinette

In optimal control problems defined on stratified domains, the dynamics and the running cost may have discontinuities on a finite union of submanifolds of RN. In [8, 5], the corresponding value function is characterized as the unique…

Optimization and Control · Mathematics 2022-07-15 Simone Cacace , Fabio Camilli

In this article, the notion of viscosity solution is introduced for the path-dependent Hamilton-Jacobi-Bellman (PHJB) equations associated with the optimal control problems for path-dependent stochastic differential equations. We identify…

Optimization and Control · Mathematics 2020-04-07 Jianjun Zhou

We develop a general theoretical framework for optimal probability density control on standard measure spaces, aimed at addressing large-scale multi-agent control problems. In particular, we establish a maximum principle (MP) for control…

Optimization and Control · Mathematics 2026-03-10 Nathan Gaby , Xiaojing Ye

We study optimal control problems in infinite horizon when the dynamics belong to a specific class of piecewise deterministic Markov processes constrained to star-shaped networks (inspired by traffic models). We adapt the results in [H. M.…

Optimization and Control · Mathematics 2015-10-06 Dan Goreac , Magdalena Kobylanski , Miguel Martinez

We study a problem of optimal investment/consumption over an infinite horizon in a market consisting of a liquid and an illiquid asset. The liquid asset is observed and can be traded continuously, while the illiquid one can only be traded…

Portfolio Management · Quantitative Finance 2012-11-07 Salvatore Federico , Paul Gassiat

In this paper, we study a stochastic recursive optimal control problem in which the value functional is defined by the solution of a backward stochastic differential equation (BSDE) under $\tilde{G}$-expectation. Under standard assumptions,…

Optimization and Control · Mathematics 2021-06-08 Mingshang Hu , Shaolin Ji , Xiaojuan Li

This work reformulates language generation as a stochastic optimal control problem, providing a unified theoretical perspective to analyze autoregressive and diffusion models and explain their limitations (Efficiency-Fidelity Paradox,…

Computation and Language · Computer Science 2026-05-18 ZiYi Dong , Yuliang Huang , Weijian Deng , Xiangyang Ji , Liang Lin , Pengxu Wei

The aim of this work is to deal with a discontinuous Hamilton-Jacobi equation in the whole euclidian N-dimensional space, associated to a possibly unbounded optimal control problem. Here, the discontinuities are located on a hyperplane and…

Optimization and Control · Mathematics 2024-05-16 Emmanuel Chasseigne , Robson Carlos Reis , Silvia Sastre-Gomez

Optimal control of diffusion processes is intimately connected to the problem of solving certain Hamilton-Jacobi-Bellman equations. Building on recent machine learning inspired approaches towards high-dimensional PDEs, we investigate the…

Optimization and Control · Mathematics 2023-01-31 Nikolas Nüsken , Lorenz Richter

We consider an infinite horizon discounted optimal control problem for piecewise deterministic Markov processes, where a piecewise open-loop control acts continuously on the jump dynamics and on the deterministic flow. For this class of…

Optimization and Control · Mathematics 2015-12-08 Elena Bandini