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Given $\mu$ and $\nu$, probability measures on $\mathbb R^d$ in convex order, a Bass martingale is arguably the most natural martingale starting with law $\mu$ and finishing with law $\nu$. Indeed, this martingale is obtained by stretching…

Probability · Mathematics 2024-07-29 Julio Backhoff-Veraguas , Gudmund Pammer , Walter Schachermayer

Motivated by the connection between the Kyle equilibrium with static private signal and the Brownian bridge, we study a much broader class of bridges that allow one to consider more general equilibrium models, for example ones including…

Probability · Mathematics 2026-05-08 Beatrice Acciaio , Umut Çetin

A paradigm put forth by E. Schr\"odinger in 1931/32, known as Schr\"odinger bridges, represents a formalism to pose and solve control and estimation problems seeking a perturbation from an initial control schedule (in the case of control),…

Optimization and Control · Mathematics 2023-07-12 Yongxin Chen , Tryphon T. Georgiou , Michele Pavon

A class of generative models that unifies flow-based and diffusion-based methods is introduced. These models extend the framework proposed in Albergo and Vanden-Eijnden (2023), enabling the use of a broad class of continuous-time stochastic…

Machine Learning · Computer Science 2025-10-10 Michael S. Albergo , Nicholas M. Boffi , Eric Vanden-Eijnden

We propose a novel generative model for time series based on Schr{\"o}dinger bridge (SB) approach. This consists in the entropic interpolation via optimal transport between a reference probability measure on path space and a target measure…

Optimization and Control · Mathematics 2023-04-12 Mohamed Hamdouche , Pierre Henry-Labordere , Huyên Pham

We consider an entropy-regularized version of optimal density control of deterministic discrete-time linear systems. Entropy regularization, or a maximum entropy (MaxEnt) method for optimal control has attracted much attention especially in…

Optimization and Control · Mathematics 2023-08-15 Kaito Ito , Kenji Kashima

A system of drift-diffusion equations with electric field under Dirichlet boundary conditions is analyzed. The system of strongly coupled parabolic equations for particle density and spin density vector describes the spin-polarized…

Analysis of PDEs · Mathematics 2014-02-26 Nicola Zamponi

We analyze the unforced and deterministically forced Burgers equation in the framework of the (diffusive) interpolating dynamics that solves the so-called Schr\"{o}dinger boundary data problem for the random matter transport. This entails…

Condensed Matter · Physics 2009-10-31 P. Garbaczewski , G. Kondrat , R. Olkiewicz

An interesting question in the field of martingale optimal transport, is to determine the martingale with prescribed initial and terminal marginals which is most correlated to Brownian motion. Under a necessary and sufficient irreducibility…

Probability · Mathematics 2023-09-21 Julio Backhoff-Veraguas , Walter Schachermayer , Bertram Tschiderer

The theory of Schroedinger bridges for diffusion processes is extended to classical and quantum discrete-time Markovian evolutions. The solution of the path space maximum entropy problems is obtained from the a priori model in both cases…

Mathematical Physics · Physics 2009-04-29 Michele Pavon , Francesco Ticozzi

We propose a discrete time formulation of the semi-martingale optimal transport problem based on multi-marginal entropic transport. This approach offers a new way to formulate and solve numerically the calibration problem proposed by [17],…

Optimization and Control · Mathematics 2024-12-03 Jean-David Benamou , Guillaume Chazareix , Grégoire Loeper

We study causal optimal transport in continuous time, with Markovian cost, between a finite-state Markov source and a diffusion target. By replacing the source with its conditional law given the observation of the target, we characterize…

Optimization and Control · Mathematics 2026-05-20 Julio Backhoff , Erhan Bayraktar , Ibrahim Ekren , Antonios Zitridis

We describe some analogy between optimal transport and the Schr\"odinger problem where the transport cost is replaced by an entropic cost with a reference path measure. A dual Kantorovich type formulation and a Benamou-Brenier type…

Probability · Mathematics 2016-05-23 Ivan Gentil , Christian Léonard , Luigia Ripani

We consider a stochastic transportation problem between two prescribed probability distributions (a source and a target) over processes with general drift dependence and with free end times. First, and in order to establish a dual…

Optimization and Control · Mathematics 2019-09-12 Samer Dweik , Nassif Ghoussoub , Young-Heon Kim , Aaron Zeff Palmer

We formulate a dynamic reinsurance problem in which the insurer seeks to control the terminal distribution of its surplus while minimizing the L2-norm of the ceded risk. Using techniques from martingale optimal transport, we show that,…

Risk Management · Quantitative Finance 2026-01-16 Beatrice Acciaio , Brandon Garcia Flores , Antonio Marini , Gudmund Pammer

We formulate the Schr\"odinger problem for interacting particle systems in the hydrodynamical regime thus extending the standard setting of independent particles. This involves the large deviations rate function for the empirical measure…

Probability · Mathematics 2025-06-30 L. Bertini , D. Gabrielli , G. Jona-Lasinio

We investigate propagation of convexity and convex ordering on a typical discrete-time stochastic optimal control problem, namely the pricing of swing option. The dynamics of the underlying asset is modelled by the Euler scheme of a…

Mathematical Finance · Quantitative Finance 2025-08-05 Gilles Pagès , Christian Yeo

This work introduces novel computational methods for entropic optimal transport (OT) problems under martingale-type conditions. The considered problems include the discrete martingale optimal transport (MOT) problem. Moreover, as the…

Optimization and Control · Mathematics 2025-08-26 Xun Tang , Michael Shavlovsky , Holakou Rahmanian , Tesi Xiao , Lexing Ying

Diffusion Schr\"odinger bridges (DSB) have recently emerged as a powerful framework for recovering stochastic dynamics via their marginal observations at different time points. Despite numerous successful applications, existing algorithms…

In the early 1930's, Erwin Schroedinger, motivated by his quest for a more classical formulation of quantum mechanics, posed a large deviation problem for a cloud of independent Brownian particles. He showed that the solution to the problem…

Optimization and Control · Mathematics 2018-09-21 Montacer Essid , Michele Pavon