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We consider the optimal stopping problem $v^{(\eps)}:=\sup_{\tau\in\mathcal{T}_{0,T}}\mathbb{E}B_{(\tau-\eps)^+}$ posed by Shiryaev at the International Conference on Advanced Stochastic Optimization Problems organized by the Steklov…

Probability · Mathematics 2015-04-07 Erhan Bayraktar , Zhou Zhou

We solve two stochastic control problems in which a player tries to minimize or maximize the exit time from an interval of a Brownian particle, by controlling its drift. The player can change from one drift to another but is subject to a…

Probability · Mathematics 2014-08-19 Robert C. Dalang , Laura Vinckenbosch

We formulate an optimal stopping problem for a geometric Brownian motion where the probability scale is distorted by a general nonlinear function. The problem is inherently time inconsistent due to the Choquet integration involved. We…

Probability · Mathematics 2022-01-07 Zuo Quan Xu , Xun Yu Zhou

For an infinite-horizon continuous-time optimal stopping problem under non-exponential discounting, we look for an optimal equilibrium, which generates larger values than any other equilibrium does on the entire state space. When the…

Optimization and Control · Mathematics 2021-07-15 Yu-Jui Huang , Zhou Zhou

We solve the problem of optimal stopping of a Brownian motion subject to the constraint that the stopping time's distribution is a given measure consisting of finitely-many atoms. In particular, we show that this problem can be converted to…

Optimization and Control · Mathematics 2017-07-07 Erhan Bayraktar , Christopher W. Miller

Infinite horizon optimal stopping problems for a L\'evy processes with a two-sided reward function are considered. A two-sided verification theorem is presented in terms of the overall supremum and the overall infimum of the process. A…

Probability · Mathematics 2019-12-18 Ernesto Mordecki , Facundo Oliú Eguren

We study an optimal stopping problem with an unbounded, time-dependent and discontinuous reward function. This problem is motivated by the pricing of a variable annuity contract with guaranteed minimum maturity benefit, under the assumption…

Mathematical Finance · Quantitative Finance 2026-03-10 Anne Mackay , Marie-Claude Vachon

The scope of this paper is to study the optimal stopping problems associated to a stochastic process, which may represent the gain of an investment, for which information on the final value is available a priori. This information may…

Probability · Mathematics 2019-09-09 Bernardo D'Auria , Alessandro Ferriero

The optimal stopping problem for a Hunt processes on $\R$ is considered via the representation theory of excessive functions. In particular, we focus on infinite horizon (or perpetual) problems with one-sided structure, that is, there…

Probability · Mathematics 2007-05-23 Ernesto Mordecki , Paavo Salminen

We adapt ideas and concepts developed in optimal transport (and its martingale variant) to give a geometric description of optimal stopping times of Brownian motion subject to the constraint that the distribution of the stopping time is a…

Probability · Mathematics 2017-09-14 Mathias Beiglboeck , Manu Eder , Christiane Elgert , Uwe Schmock

We propose a new method for solving optimal stopping problems (such as American option pricing in finance) under minimal assumptions on the underlying stochastic process $X$. We consider classic and randomized stopping times represented by…

Probability · Mathematics 2021-05-04 Christian Bayer , Paul Hager , Sebastian Riedel , John Schoenmakers

Optimal stopping is the problem of deciding when to stop a stochastic system to obtain the greatest reward, arising in numerous application areas such as finance, healthcare and marketing. State-of-the-art methods for high-dimensional…

Optimization and Control · Mathematics 2020-01-01 Dragos Florin Ciocan , Velibor V. Mišić

We address a general optimal switching problem over finite horizon for a stochastic system described by a differential equation driven by Brownian motion. The main novelty is the fact that we allow for infinitely many modes (or regimes,…

Optimization and Control · Mathematics 2019-08-07 Marco Fuhrman , Marie-Amélie Morlais

In this paper, we present a discrete-type approximation scheme to solve continuous-time optimal stopping problems based on fully non-Markovian continuous processes adapted to the Brownian motion filtration. The approximations satisfy…

Probability · Mathematics 2019-06-24 Dorival Leão , Alberto Ohashi , Francesco Russo

We address an optimal stopping problem over the set of Bermudan-type strategies $\Theta$ (which we understand in a more general sense than the stopping strategies for Bermudan options in finance) and with non-linear operators (non-linear…

Optimization and Control · Mathematics 2023-01-27 Miryana Grigorova , Marie-Claire Quenez , Peng Yuan

This paper considers a pair $(\mathbb{F},\tau)$, where $\mathbb{F}$ is a filtration representing the "public" flow of information which is available to all agents overtime, and $\tau$ is a random time which might not be an…

Probability · Mathematics 2024-04-24 Tahir Choulli , Safa' Alsheyab

Standard Markovian optimal stopping problems are consistent in the sense that the first entrance time into the stopping set is optimal for each initial state of the process. Clearly, the usual concept of optimality cannot in a…

Optimization and Control · Mathematics 2018-12-05 Sören Christensen , Kristoffer Lindensjö

In this paper, we study the optimal multiple stopping problem under the filtration consistent nonlinear expectations. The reward is given by a set of random variables satisfying some appropriate assumptions rather than an RCLL process. We…

Probability · Mathematics 2019-08-21 Hanwu Li

We study an optimal control problem on infinite horizon for a controlled stochastic differential equation driven by Brownian motion, with a discounted reward functional. The equation may have memory or delay effects in the coefficients,…

Optimization and Control · Mathematics 2017-10-19 F. Confortola , A. Cosso , M. Fuhrman

This paper explores continuous-time and state-space optimal stopping problems from a reinforcement learning perspective. We begin by formulating the stopping problem using randomized stopping times, where the decision maker's control is…

Optimization and Control · Mathematics 2026-03-12 Jodi Dianetti , Giorgio Ferrari , Renyuan Xu