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We consider a stochastic factor financial model where the asset price process and the process for the stochastic factor depend on an observable Markov chain and exhibit an affine structure. We are faced with a finite time investment horizon…

投资组合管理 · 定量金融 2014-03-21 Marcos Escobar , Daniela Neykova , Rudi Zagst

Starting from the Avellaneda-Stoikov framework, we consider a market maker who wants to optimally set bid/ask quotes over a finite time horizon, to maximize her expected utility. The intensities of the orders she receives depend not only on…

交易与市场微观结构 · 定量金融 2020-06-29 Diego Zabaljauregui , Luciano Campi

We study an optimal process control problem with multiple assignable causes. The process is initially in-control but is subject to random transition to one of multiple out-of-control states due to assignable causes. The objective is to find…

最优化与控制 · 数学 2012-12-12 Jue Wang , Chi-Guhn Lee

The work explores a specific scenario for structural computational optimization based on the following elements: (a) a relaxed optimization setting considering the ersatz (bi-material) approximation, (b) a treatment based on a nonsmoothed…

计算工程、金融与科学 · 计算机科学 2021-08-06 J. Oliver , D. Yago , J. Cante , O. Lloberas-Valls

Model-based reinforcement learning techniques accelerate the learning task by employing a transition model to make predictions. In this paper, a model-based learning approach is presented that iteratively computes the optimal value function…

最优化与控制 · 数学 2020-10-22 Milad Farsi , Jun Liu

We consider a production-inventory control model with finite capacity and two different production rates, assuming that the cumulative process of customer demand is given by a compound Poisson process. It is possible at any time to switch…

最优化与控制 · 数学 2020-08-14 Pablo Azcue , Esther Frostig , Nora Muler

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…

概率论 · 数学 2024-12-31 Idris Kharroubi , Antonio Ocello

We study a control problem where the state equation is a nonlinear partial differential equation of the calculus of variation in a bounded domain, perturbed by noise. We allow the control to act on the boundary and set stochastic boundary…

概率论 · 数学 2025-11-26 Stefano Bonaccorsi , Adrian Zalinescu

We study optimal control of Markov processes with age-dependent transition rates. The control policy is chosen continuously over time based on the state of the process and its age. We study infinite horizon discounted cost and infinite…

最优化与控制 · 数学 2014-09-16 Mrinal K. Ghosh , Subhamay Saha

This paper concerns an optimal impulse control problem associated with a refracted L\'{e}vy process, involving the reduction of reserves to a predetermined level whenever they exceed a specified threshold. The ruin time is determined by…

最优化与控制 · 数学 2026-01-29 Zhongqin Gao , Yan Lv , Jingmin He

We analyze the relative price change of assets starting from basic supply/demand considerations subject to arbitrary motivations. The resulting stochastic differential equation has coefficients that are functions of supply and demand. We…

理论经济学 · 经济学 2020-08-26 Carey Caginalp , Gunduz Caginalp

In the frictionless discrete time financial market of Bouchard et al.(2015) we consider a trader who, due to regulatory requirements or internal risk management reasons, is required to hedge a claim $\xi$ in a risk-conservative way relative…

数理金融 · 定量金融 2019-02-19 Laurence Carassus , Jan Obloj , Johannes Wiesel

This study investigates a stochastic production planning problem with regime-switching parameters, inspired by economic cycles impacting production and inventory costs. The model considers types of goods and employs a Markov chain to…

偏微分方程分析 · 数学 2025-05-14 Dragos-Patru Covei

Most decision theories, including expected utility theory, rank dependent utility theory and cumulative prospect theory, assume that investors are only interested in the distribution of returns and not in the states of the economy in which…

投资组合管理 · 定量金融 2014-07-03 Carole Bernard , Franck Moraux , Ludger Rueschendorf , Steven Vanduffel

In financial markets, liquidity is not constant over time but exhibits strong seasonal patterns. In this article we consider a limit order book model that allows for time-dependent, deterministic depth and resilience of the book and…

交易与市场微观结构 · 定量金融 2011-09-14 Antje Fruth , Torsten Schoeneborn , Mikhail Urusov

The present paper represents a continuation of our previous one. There, a continuous dependence result for the solution of an elliptic variational-hemivariational inequality was obtained and then used to prove the existence of optimal pairs…

偏微分方程分析 · 数学 2019-12-25 Yi-bin Xiao , Mircea Sofonea

We introduce a variational algorithm to estimate the likelihood of a rare event within a nonequilibrium molecular dynamics simulation through the evaluation of an optimal control force. Optimization of a control force within a chosen basis…

统计力学 · 物理学 2021-01-14 Avishek Das , David T. Limmer

We consider the problem of governing systemic risk in a banking system model. The banking system model consists in an initial value problem for a system of stochastic differential equations whose dependent variables are the log-monetary…

风险管理 · 定量金融 2018-12-19 Lorella Fatone , Francesca Mariani

We study the dependence of volatility on the stock price in the stochastic volatility framework on the example of the Heston model. To be more specific, we consider the conditional expectation of variance (square of volatility) under fixed…

证券定价 · 定量金融 2011-07-29 Mikhail Martynov , Olga Rozanova

Model predictive control (MPC) schemes are commonly designed with fixed, i.e., time-invariant, horizon length and cost functions. If no stabilizing terminal ingredients are used, stability can be guaranteed via a sufficiently long horizon.…

系统与控制 · 电气工程与系统科学 2021-03-02 Lukas Beckenbach , Stefan Streif