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Non-equilibrium phenomena occur not only in physical world, but also in finance. In this work, stochastic relaxational dynamics (together with path integrals) is applied to option pricing theory. A recently proposed model (by Ilinski et…

统计力学 · 物理学 2009-10-31 Matthias Otto

Order-preserving couplings are elegant tools for obtaining robust estimates of the time-dependent and stationary distributions of Markov processes that are too complex to be analyzed exactly. The starting point of this paper is to study…

概率论 · 数学 2009-06-02 Lasse Leskelä

This article provides an overview of model predictive control (MPC) frameworks for dynamic operation of nonlinear constrained systems. Dynamic operation is often an integral part of the control objective, ranging from tracking of reference…

系统与控制 · 电气工程与系统科学 2024-01-10 Johannes Köhler , Matthas A. Müller , Frank Allgöwer

We introduce a general framework for deriving effective dynamics from arbitrary time-dependent generators, based on a systematic operator cumulant expansion. Unlike traditional approaches, which typically assume periodic or adiabatic…

数学物理 · 物理学 2025-10-02 Leon Bello , Tal Rubin , Wentao Fan , Nathaniel Fisch , Hakan Türeci

The development of emerging technologies in quantum optics demands accurate models that faithfully capture genuine quantum effects. Mature semiclassical approaches reach their limits when confronted with quantized electromagnetic fields,…

We propose empirical dynamic programming algorithms for Markov decision processes (MDPs). In these algorithms, the exact expectation in the Bellman operator in classical value iteration is replaced by an empirical estimate to get `empirical…

最优化与控制 · 数学 2013-11-26 William B. Haskell , Rahul Jain , Dileep Kalathil

Online learning algorithms are designed to perform in non-stationary environments, but generally there is no notion of a dynamic state to model constraints on current and future actions as a function of past actions. State-based models are…

机器学习 · 计算机科学 2015-09-01 Peng Guan , Maxim Raginsky , Rebecca Willett

In this paper, we introduce a suite of models for price-aware automated market making platforms willing to optimize their quotes. These models incorporate advanced price dynamics, including stochastic volatility, jumps, and microstructural…

交易与市场微观结构 · 定量金融 2024-05-21 Philippe Bergault , Louis Bertucci , David Bouba , Olivier Guéant , Julien Guilbert

The stochastic properties of a Langevin-type Markov process can be extracted from a given time series by a Markov analysis. Also processes that obey a stochastically forced second order differential equation can be analyzed this way by…

数据分析、统计与概率 · 物理学 2014-12-09 Bernd Lehle , Joachim Peinke

The Koopman operator has emerged as a powerful tool for the analysis of nonlinear dynamical systems as it provides coordinate transformations to globally linearize the dynamics. While recent deep learning approaches have been useful in…

动力系统 · 数学 2020-06-23 Shaowu Pan , Karthik Duraisamy

Functional data analysis, which models data as realizations of random functions over a continuum, has emerged as a useful tool for time series data. Often, the goal is to infer the dynamic connections (or time-varying conditional…

统计方法学 · 统计学 2024-12-10 Chunshan Liu , Daniel R. Kowal , James Doss-Gollin , Marina Vannucci

A mathematical framework for modelling constrained mixed-variable optimization problems is presented in a blackbox optimization context. The framework introduces a new notation and allows solution strategies. The notation framework allows…

最优化与控制 · 数学 2022-04-05 Charles Audet , Edward Hallé-Hannan , Sébastien Le Digabel

The abstraction of dynamical systems is a powerful tool that enables the design of feedback controllers using a correct-by-design framework. We investigate a novel scheme to obtain data-driven abstractions of discrete-time stochastic…

系统与控制 · 电气工程与系统科学 2024-04-15 Rudi Coppola , Andrea Peruffo , Licio Romao , Alessandro Abate , Manuel Mazo

Markov Population Models are a widespread formalism used to model the dynamics of complex systems, with applications in Systems Biology and many other fields. The associated Markov stochastic process in continuous time is often analyzed by…

机器学习 · 计算机科学 2021-06-25 Francesca Cairoli , Ginevra Carbone , Luca Bortolussi

We extend the work on optimal investment and consumption of a population considered in [2] to a general stochastic setting over a finite time horizon. We incorporate the Cobb-Douglas production function in the capital dynamics while the…

偏微分方程分析 · 数学 2024-08-15 Hao Liu , Suresh P. Sethi , Tak Kwong Wong , Sheung Chi Phillip Yam

Markov processes on the lattices with arbitrary dimension are omnipresent in statistical mechanics; however their algebraic description is complete only in dimension 1, for which linear algebra provides many tools complementary to the…

概率论 · 数学 2025-04-08 Damien Simon

Stochastic processes generated by non-stationary distributions are difficult to represent with conventional models such as Gaussian processes. This work presents Recurrent Autoregressive Flows as a method toward general stochastic process…

机器学习 · 计算机科学 2020-06-20 John Mern , Peter Morales , Mykel J. Kochenderfer

The estimation of dependencies between multiple variables is a central problem in the analysis of financial time series. A common approach is to express these dependencies in terms of a copula function. Typically the copula function is…

Stochastic differential games are considered in a non-Markovian setting. Typically, in stochastic differential games the modulating process of the diffusion equation describing the state flow is taken to be Markovian. Then Nash equilibria…

信息论 · 计算机科学 2007-07-13 Erhan Bayraktar , H. Vincent Poor

The standard Black-Scholes theory of option pricing is extended to cope with underlying return fluctuations described by general probability distributions. A Langevin process and its related Fokker-Planck equation are devised to model the…

物理与社会 · 物理学 2009-11-11 L. Moriconi