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The present work extends the randomized shortest-paths framework (RSP), interpolating between shortest-path and random-walk routing in a network, in three directions. First, it shows how to deal with equality constraints on a subset of…

Machine Learning · Computer Science 2018-07-13 Bertrand Lebichot , Guillaume Guex , Ilkka Kivimäki , Marco Saerens

We propose an adversarial deep reinforcement learning (ADRL) algorithm for high-dimensional stochastic control problems. Inspired by the information relaxation duality, ADRL reformulates the control problem as a min-max optimization between…

Optimization and Control · Mathematics 2025-07-03 Nan Chen , Mengzhou Liu , Xiaoyan Wang , Nanyi Zhang

With the rapid development of artificial intelligence, data-driven methods effectively overcome limitations in traditional portfolio optimization. Conventional models primarily employ long-only mechanisms, excluding highly correlated assets…

Computational Finance · Quantitative Finance 2025-03-18 Gang Huang , Xiaohua Zhou , Qingyang Song

We study risk-sensitive reinforcement learning (RL) based on an entropic risk measure in episodic non-stationary Markov decision processes (MDPs). Both the reward functions and the state transition kernels are unknown and allowed to vary…

Machine Learning · Computer Science 2022-11-22 Yuhao Ding , Ming Jin , Javad Lavaei

We develop a framework for interacting with uncertain environments in reinforcement learning (RL) by leveraging preferences in the form of utility functions. We claim that there is value in considering different risk measures during…

Machine Learning · Computer Science 2021-02-23 Hannes Eriksson , Christos Dimitrakakis

We study risk-sensitive reinforcement learning in finite discounted MDPs with recursive entropic risk measures (ERM), where the risk parameter $\beta \neq 0$ controls the agent's risk attitude: $\beta>0$ for risk-averse and $\beta<0$ for…

Machine Learning · Computer Science 2026-05-20 Oliver Mortensen , Mohammad Sadegh Talebi

We propose Deterministic Sequencing of Exploration and Exploitation (DSEE) algorithm with interleaving exploration and exploitation epochs for model-based RL problems that aim to simultaneously learn the system model, i.e., a Markov…

Machine Learning · Computer Science 2022-12-21 Piyush Gupta , Vaibhav Srivastava

This paper considers a newly delayed reinsurance and investment optimization problem incorporating random risk aversion, in which an insurer pursues maximization of the expected certainty equivalent of her/his terminal wealth and the…

Optimization and Control · Mathematics 2026-01-23 Jian-hao Kang , Zhun Gou , Nan-jing Huang

Balancing exploration and exploitation is a central goal in reinforcement learning (RL). Despite recent advances in enhancing large language model (LLM) reasoning, most methods lean toward exploitation, and increasingly encounter…

Computation and Language · Computer Science 2025-11-11 Daixuan Cheng , Shaohan Huang , Xuekai Zhu , Bo Dai , Wayne Xin Zhao , Zhenliang Zhang , Furu Wei

In this paper we study a continuous-time stochastic linear quadratic control problem arising from mathematical finance. We model the asset dynamics with random market coefficients and portfolio strategies with convex constraints. Following…

Portfolio Management · Quantitative Finance 2017-05-24 Yusong Li , Harry Zheng

State-of-the-art reinforcement learning (RL) algorithms typically use random sampling (e.g., $\epsilon$-greedy) for exploration, but this method fails on hard exploration tasks like Montezuma's Revenge. To address the challenge of…

Machine Learning · Computer Science 2022-11-21 Eric Chen , Zhang-Wei Hong , Joni Pajarinen , Pulkit Agrawal

Many real-world problems can be reduced to combinatorial optimization on a graph, where the subset or ordering of vertices that maximize some objective function must be found. With such tasks often NP-hard and analytically intractable,…

Machine Learning · Computer Science 2021-03-22 Thomas D. Barrett , William R. Clements , Jakob N. Foerster , A. I. Lvovsky

With the fast development of quantitative portfolio optimization in financial engineering, lots of AI-based algorithmic trading strategies have demonstrated promising results, among which reinforcement learning begins to manifest…

Mathematical Finance · Quantitative Finance 2023-03-10 Huifang Huang , Ting Gao , Pengbo Li , Jin Guo , Peng Zhang , Nan Du

We introduce a novel framework to account for sensitivity to rewards uncertainty in sequential decision-making problems. While risk-sensitive formulations for Markov decision processes studied so far focus on the distribution of the…

Machine Learning · Computer Science 2020-09-16 Nelson Vadori , Sumitra Ganesh , Prashant Reddy , Manuela Veloso

We present a general framework for optimizing the Conditional Value-at-Risk for dynamical systems using stochastic search. The framework is capable of handling the uncertainty from the initial condition, stochastic dynamics, and uncertain…

Optimization and Control · Mathematics 2021-02-16 Ziyi Wang , Oswin So , Keuntaek Lee , Camilo A. Duarte , Evangelos A. Theodorou

We present a new model-based algorithm for reinforcement learning (RL) which consists of explicit exploration and exploitation phases, and is applicable in large or infinite state spaces. The algorithm maintains a set of dynamics models…

Machine Learning · Computer Science 2019-12-03 Mikael Henaff

We describe a new approach for managing aleatoric uncertainty in the Reinforcement Learning (RL) paradigm. Instead of selecting actions according to a single statistic, we propose a distributional method based on the second-order stochastic…

Machine Learning · Computer Science 2020-10-08 John D. Martin , Michal Lyskawinski , Xiaohu Li , Brendan Englot

Optimizing objective functions subject to constraints is fundamental in many real-world applications. However, these constraints are often not readily defined and must be inferred from expert agent behaviors, a problem known as Inverse…

Machine Learning · Computer Science 2025-05-19 Bo Yue , Jian Li , Guiliang Liu

We propose a comprehensive framework for policy gradient methods tailored to continuous time reinforcement learning. This is based on the connection between stochastic control problems and randomised problems, enabling applications across…

Optimization and Control · Mathematics 2024-05-01 Robert Denkert , Huyên Pham , Xavier Warin

Reinforcement learning (RL) has achieved promising results on most robotic control tasks. Safety of learning-based controllers is an essential notion of ensuring the effectiveness of the controllers. Current methods adopt whole consistency…

Robotics · Computer Science 2023-07-31 Haotian Xu , Shengjie Wang , Zhaolei Wang , Yunzhe Zhang , Qing Zhuo , Yang Gao , Tao Zhang