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We obtain the first probabilistic proof of continuous differentiability of time-dependent optimal boundaries in optimal stopping problems. The underlying stochastic dynamics is a one-dimensional, time-inhomogeneous diffusion. The gain…

概率论 · 数学 2024-05-28 Tiziano De Angelis , Damien Lamberton

In this paper, we introduce a modification of the free boundary problem related to optimal stopping problems for diffusion processes. This modification allows the application of this PDE method in cases where the usual regularity…

概率论 · 数学 2008-12-18 Ludger Rüschendorf , Mikhail A. Urusov

We consider a class of time-inhomogeneous optimal stopping problems and we provide sufficient conditions on the data of the problem that guarantee monotonicity of the optimal stopping boundary. In our setting, time-inhomogeneity stems not…

最优化与控制 · 数学 2023-01-16 Alessandro Milazzo

The maximality principle has been a valuable tool in identifying the free-boundary functions that are associated with the solutions to several optimal stopping problems involving one-dimensional time-homogeneous diffusions and their running…

概率论 · 数学 2025-05-27 Neofytos Rodosthenous , Mihail Zervos

In this paper, we investigate dynamic optimization problems featuring both stochastic control and optimal stopping in a finite time horizon. The paper aims to develop new methodologies, which are significantly different from those of mixed…

投资组合管理 · 定量金融 2014-06-27 Xiongfei Jian , Xun Li , Fahuai Yi

We consider optimal stopping problems with finite-time horizon and state-dependent discounting. The underlying process is a one-dimensional linear diffusion and the gain function is time-homogeneous and difference of two convex functions.…

概率论 · 数学 2022-01-19 Tiziano De Angelis

A finite horizon optimal stopping problem for an infinite dimensional diffusion $X$ is analyzed by means of variational techniques. The diffusion is driven by a SDE on a Hilbert space $\mathcal{H}$ with a non-linear diffusion coefficient…

最优化与控制 · 数学 2015-02-03 M. B. Chiarolla , T. De Angelis

We consider the problem of optimally stopping a general one-dimensional stochastic differential equation (SDE) with generalised drift over an infinite time horizon. First, we derive a complete characterisation of the solution to this…

概率论 · 数学 2019-09-26 Mihail Zervos , Neofytos Rodosthenous , Pui Chan Lon , Thomas Bernhardt

We obtain a probabilistic proof of the local Lipschitz continuity for the optimal stopping boundary of a class of problems with state space $[0,T]\times\mathbb{R}^d$, $d\ge 1$. To the best of our knowledge this is the only existing proof…

最优化与控制 · 数学 2018-12-11 Tiziano De Angelis , Gabriele Stabile

We study a continuous-time, finite horizon, stochastic partially reversible investment problem for a firm producing a single good in a market with frictions. The production capacity is modeled as a one-dimensional, time-homogeneous, linear…

最优化与控制 · 数学 2014-11-13 Tiziano De Angelis , Giorgio Ferrari

We present a methodology for obtaining explicit solutions to infinite time horizon optimal stopping problems involving general, one-dimensional, It\^o diffusions, payoff functions that need not be smooth and state-dependent discounting.…

计算金融 · 定量金融 2012-10-10 Timothy C. Johnson

The paper studies a class of multidimensional optimal stopping problems with infinite horizon for linear switching diffusions. There are two main novelties in the optimal problems considered: the underlying stochastic process has…

概率论 · 数学 2021-08-02 Philip Ernst , Hongwei Mei

In this paper, we investigate an interesting and important stopping problem mixed with stochastic controls and a \textit{nonsmooth} utility over a finite time horizon. The paper aims to develop new methodologies, which are significantly…

最优化与控制 · 数学 2015-07-06 Chonghu Guan , Xun Li , Zuoquan Xu , Fahuai Yi

We develop a necessary stochastic maximum principle for a finite-dimensional stochastic control problem in infinite horizon under a polynomial growth and joint monotonicity assumption on the coefficients. The second assumption generalizes…

概率论 · 数学 2017-03-14 Carlo Orrieri , Petr Veverka

We study a problem when a solution to optimal stopping problem for one-dimensional diffusion will generate by threshold strategy. Namely, we give necessary and sufficient conditions under which an optimal stopping time can be specified as…

概率论 · 数学 2013-06-20 V. I. Arkin , A. D. Slastnikov

In this article, we study the classical finite-horizon optimal stopping problem for multidimensional diffusions through an approach that differs from what is typically found in the literature. More specifically, we first prove a key…

最优化与控制 · 数学 2025-03-05 Andrea Cosso , Laura Perelli

We study the optimal investment stopping problem in both continuous and discrete case, where the investor needs to choose the optimal trading strategy and optimal stopping time concurrently to maximize the expected utility of terminal…

数理金融 · 定量金融 2020-05-01 Dingqian Sun

We consider the optimal control of singular nonlinear partial differential equation which is the distributional formulation of the multiphase Stefan type free boundary problem for the general second order parabolic equation. Boundary heat…

偏微分方程分析 · 数学 2020-03-03 Ugur G. Abdulla , Evan Cosgrove

We consider impulse control problems in finite horizon for diffusions with decision lag and execution delay. The new feature is that our general framework deals with the important case when several consecutive orders may be decided before…

概率论 · 数学 2007-05-23 Benjamin Bruder , Huyen Pham

Various classes of stable finite difference schemes can be constructed to obtain a numerical solution. It is important to select among all stable schemes such a scheme that is optimal in terms of certain additional criteria. In this study,…

数值分析 · 计算机科学 2010-06-01 Petr N. Vabishchevich
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