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In this paper we examine a control variate estimator for a quantity that can be expressed as the expectation of a functional of a random process, that is itself the solution of a differential equation driven by fast mean-reverting ergodic…

Probability · Mathematics 2020-08-10 Josselin Garnier , Laurent Mertz

We consider stochastic control with discretionary stopping for the drift of a diffusion process over an infinite time horizon. The objective is to choose a control process and a stopping time to minimize the expectation of a convex terminal…

Optimization and Control · Mathematics 2025-06-24 Václav E. Beneš , Georgy Gaitsgori , Ioannis Karatzas

This article gives an overview of the developments in controlled diffusion processes, emphasizing key results regarding existence of optimal controls and their characterization via dynamic programming for a variety of cost criteria and…

Probability · Mathematics 2007-05-23 Vivek S. Borkar

We consider stochastic impulse control problems where the process is driven by a general one-dimensional diffusion. We shall show a new mathematical characterization of the value function as a linear function in a certain transformed space.…

Optimization and Control · Mathematics 2007-05-23 Masahiko Egami

This paper considers the problem of designing time-dependent, real-time control policies for controllable nonlinear diffusion processes, with the goal of obtaining maximally-informative observations about parameters of interest. More…

Methodology · Statistics 2014-10-16 Giles Hooker , Kevin K. Lin , Bruce Rogers

Consider a set of discounted optimal stopping problems for a one-parameter family of objective functions and a fixed diffusion process, started at a fixed point. A standard problem in stochastic control/optimal stopping is to solve for the…

Probability · Mathematics 2010-05-04 David Hobson , Martin Klimmek

This paper is concerned with cost optimization of an insurance company. The surplus of the insurance company is modeled by a controlled regime switching diffusion, where the regime switching mechanism provides the fluctuations of the random…

Optimization and Control · Mathematics 2016-08-02 Chao Zhu

In this paper, we aim to develop the theory of optimal stochastic control for branching diffusion processes where both the movement and the reproduction of the particles depend on the control. More precisely, we study the problem of…

Probability · Mathematics 2016-09-19 Julien Claisse

In this paper, we consider a risk-averse control problem for diffusion processes, in which there is a partition of the admissible control strategy into two decision-making groups (namely, the {\it leader} and {\it follower}) with different…

Optimization and Control · Mathematics 2018-01-03 Getachew K. Befekadu , Alexander Veremyev , Eduardo L. Pasiliao

We study optimal control problems for interacting branching diffusion processes, a class of measure-valued dynamics capturing both spatial motion and branching mechanisms. From the perspective of the dynamic programming principle, we…

Optimization and Control · Mathematics 2026-01-19 Antonio Ocello

We consider an optimal control problem that entails the minimization of a nondifferentiable cost functional, fractional diffusion as state equation and constraints on the control variable. We provide existence, uniqueness and regularity…

Numerical Analysis · Mathematics 2017-04-05 Enrique Otárola , Abner J. Salgado

This paper studies regularity property of the value function for an infinite-horizon discounted cost impulse control problem, where the underlying controlled process is a multidimensional jump diffusion with possibly `infinite-activity'…

Optimization and Control · Mathematics 2009-12-18 Mark H. A. Davis , Xin Guo , Guoliang Wu

We consider a controlled-diffusion process pertaining to a chain of distributed systems with random perturbations that satisfies a weak H\"ormander type condition. In particular, we consider a stochastic control problem with the following…

Optimization and Control · Mathematics 2015-09-29 Getachew K. Befekadu , Eduardo L. Pasiliao

Motivated by applications in natural resource management, risk management, and finance, this paper is focused on an ergodic two-sided singular control problem for a general one-dimensional diffusion process. The control is given by a…

Optimization and Control · Mathematics 2022-03-01 Khwanchai Kunwai , Fubao Xi , George Yin , Chao Zhu

We consider optimal control problems for diffusion processes, where the objective functional is defined by a time-consistent dynamic risk measure. We focus on coherent risk measures defined by $g$-evaluations. For such problems, we…

Optimization and Control · Mathematics 2016-08-22 Andrzej Ruszczynski , Jianing Yao

Although the mean-variance control was initially formulated for financial portfolio management problems in which one wants to maximize expected return and control the risk, our motivations also stem from highway vehicle platoon controls…

Optimization and Control · Mathematics 2014-01-21 Zhixin Yang , G. Yin , Le Yi Wang , Hongwei Zhang

We describe a variational approach to solving optimal stopping problems for diffusion processes, as an alternative to the traditional approach based on the solution of the free-boundary problem. We study smooth pasting conditions from a…

Probability · Mathematics 2015-08-06 V. I. Arkin , A. D. Slastnikov

This article explores an optimal stopping problem for branching diffusion processes. It consists in looking for optimal stopping lines, a type of stopping time that maintains the branching structure of the processes under analysis. By using…

Probability · Mathematics 2024-12-31 Idris Kharroubi , Antonio Ocello

We study an inverse problem of the stochastic optimal control of general diffusions with performance index having the quadratic penalty term of the control process. Under mild conditions on the system dynamics, the cost functions, and the…

Optimization and Control · Mathematics 2022-11-17 Yumiharu Nakano

We propose a general variance reduction strategy for diffusion processes. Our approach does not require the knowledge of the measure that is sampled, which may indeed be unknown as for nonequilibrium dynamics in statistical physics. We show…

Numerical Analysis · Mathematics 2019-01-29 Julien Roussel , Gabriel Stoltz
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