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Financial returns are known to exhibit heavy tails, volatility clustering and abrupt jumps that are poorly captured by classical diffusion models. Advances in machine learning have enabled highly flexible functional forms for conditional…

Risk Management · Quantitative Finance 2025-09-03 Ziyao Wang , Svetlozar T Rachev

The stochastic multi-armed bandit setting has been recently studied in the non-stationary regime, where the mean payoff of each action is a non-decreasing function of the number of rounds passed since it was last played. This model captures…

Machine Learning · Computer Science 2022-10-13 Orestis Papadigenopoulos , Constantine Caramanis , Sanjay Shakkottai

We study reinforcement learning (RL) for a class of continuous-time linear-quadratic (LQ) control problems for diffusions, where states are scalar-valued and running control rewards are absent but volatilities of the state processes depend…

Machine Learning · Computer Science 2025-07-25 Yilie Huang , Yanwei Jia , Xun Yu Zhou

We consider a conditional factor model for a multivariate portfolio of United States equities in the context of analysing a statistical arbitrage trading strategy. A state space framework underlies the factor model whereby asset returns are…

Statistical Finance · Quantitative Finance 2023-09-06 Trent Spears , Stefan Zohren , Stephen Roberts

Determining the most appropriate features for machine learning predictive models is challenging regarding performance and feature acquisition costs. In particular, global feature choice is limited given that some features will only benefit…

Machine Learning · Computer Science 2026-03-17 Gabriel Bernardino , Anders Jonsson , Patrick Clarysse , Nicolas Duchateau

Given a set of empirical observations, conditional density estimation aims to capture the statistical relationship between a conditional variable $\mathbf{x}$ and a dependent variable $\mathbf{y}$ by modeling their conditional probability…

Machine Learning · Statistics 2019-04-16 Jonas Rothfuss , Fabio Ferreira , Simon Walther , Maxim Ulrich

We study competitive equilibria in the classic Shapley-Shubik assignment model with indivisible goods and unit-demand buyers, with budget constraints: buyers can specify a maximum price they are willing to pay for each item, beyond which…

Computer Science and Game Theory · Computer Science 2010-04-19 Ning Chen , Xiaotie Deng , Arpita Ghosh

We study sequential decision-making in batched nonparametric contextual bandits, where actions are selected over a finite horizon divided into a small number of batches. Motivated by constraints in domains such as medicine and marketing --…

Machine Learning · Statistics 2025-08-04 Sakshi Arya

Existing Continual Learning (CL) approaches have focused on addressing catastrophic forgetting by leveraging regularization methods, replay buffers, and task-specific components. However, realistic CL solutions must be shaped not only by…

Machine Learning · Computer Science 2023-10-11 Jinyung Hong , Theodore P. Pavlic

In the context of individual-level causal inference, we study the problem of predicting whether someone will respond or not to a treatment based on their features and past examples of features, treatment indicator (e.g., drug/no drug), and…

Machine Learning · Statistics 2019-06-04 Nathan Kallus

We analyze a fixed-point algorithm for reinforcement learning (RL) of optimal portfolio mean-variance preferences in the setting of multivariate generalized autoregressive conditional-heteroskedasticity (MGARCH) with a small penalty on…

Computational Finance · Quantitative Finance 2023-02-17 Andrew Papanicolaou , Hao Fu , Prashanth Krishnamurthy , Farshad Khorrami

Historically, rational choice theory has focused on the utility maximization principle to describe how individuals make choices. In reality, there is a computational cost related to exploring the universe of available choices and it is…

Statistical Mechanics · Physics 2020-06-24 José Moran , Antoine Fosset , Davide Luzzati , Jean-Philippe Bouchaud , Michael Benzaquen

The learning rate is one of the most important hyper-parameters for model training and generalization. However, current hand-designed parametric learning rate schedules offer limited flexibility and the predefined schedule may not match the…

Machine Learning · Computer Science 2019-09-24 Zhen Xu , Andrew M. Dai , Jonas Kemp , Luke Metz

We consider a model where an agent has a repeated decision to make and wishes to maximize their total payoff. Payoffs are influenced by an action taken by the agent, but also an unknown state of the world that evolves over time. Before…

Computer Science and Game Theory · Computer Science 2021-01-20 Nicole Immorlica , Ian Kash , Brendan Lucier

An important aspect in the development of small molecules as drugs or agro-chemicals is their systemic availability after intravenous and oral administration. The prediction of the systemic availability from the chemical structure of a…

Quantitative Methods · Quantitative Biology 2024-01-03 Florian Führer , Andrea Gruber , Holger Diedam , Andreas H. Göller , Stephan Menz , Sebastian Schneckener

We investigate the problems of model estimation and reward-free learning in episodic Block MDPs. In these MDPs, the decision maker has access to rich observations or contexts generated from a small number of latent states. We are first…

Machine Learning · Computer Science 2023-02-27 Yassir Jedra , Junghyun Lee , Alexandre Proutière , Se-Young Yun

We study competitive dynamic pricing among multiple sellers, motivated by the rise of large-scale experimentation and algorithmic pricing in retail and online marketplaces. Sellers repeatedly set prices using simple learning rules and…

Computer Science and Game Theory · Computer Science 2026-05-25 Bar Light , Wenyu Wang

In the online portfolio optimization framework, existing learning algorithms generate strategies that yield significantly poorer cumulative wealth compared to the best constant rebalancing portfolio in hindsight, despite being consistent in…

Portfolio Management · Quantitative Finance 2025-07-09 Duy Khanh Lam

In this article, a novel neuro-inspired low-resolution online unsupervised learning rule is proposed to train the reservoir or liquid of Liquid State Machine. The liquid is a sparsely interconnected huge recurrent network of spiking…

Neural and Evolutionary Computing · Computer Science 2016-04-20 Subhrajit Roy , Arindam Basu

An important open question in computational neuroscience is how various spatially tuned neurons, such as place cells, are used to support the learning of reward-seeking behavior of an animal. Existing computational models either lack…

Neurons and Cognition · Quantitative Biology 2022-05-18 Yuanxiang Gao