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This paper brings together divergent approaches to time inconsistency from macroeconomic policy and behavioural economics. Behavioural discount functions from behavioural microeconomics are embedded into a game-theoretic analysis of…

理论经济学 · 经济学 2019-07-19 Michelle Baddeley

This paper investigates optimal consumption in the stochastic Ramsey problem with the Cobb-Douglas production function. Contrary to prior studies, we allow for general consumption processes, without any a priori boundedness constraint. A…

最优化与控制 · 数学 2021-07-15 Yu-Jui Huang , Saeed Khalili

We study the optimal investment-consumption problem for a member of defined contribution plan during the decumulation phase. For a fixed annuitization time, to achieve higher final annuity, we consider a variable consumption rate. Moreover,…

投资组合管理 · 定量金融 2020-08-18 Hassan Dadashi

We show that non-dominated sorting of a sequence of i.i.d. random variables in Euclidean space has a continuum limit that corresponds to solving a Hamilton-Jacobi equation involving the probability density function of the random variables.…

偏微分方程分析 · 数学 2013-12-18 Jeff Calder , Selim Esedoglu , Alfred O. Hero

We study a time-inconsistent singular stochastic control problem for a general one-dimensional diffusion, where time-inconsistency arises from a non-exponential discount function. To address this, we adopt a game-theoretic framework and…

最优化与控制 · 数学 2025-07-08 Andi Bodnariu , Kristoffer Lindensjö , Neofytos Rodosthenous

We consider a discounted reward control problem in continuous time stochastic environment where the discount rate might be an unbounded function of the control process. We provide a set of general assumptions to ensure that there exists a…

概率论 · 数学 2016-02-17 Dariusz Zawisza

This paper is a continuation of Ishitani and Kato (2015), in which we derived a continuous-time value function corresponding to an optimal execution problem with uncertain market impact as the limit of a discrete-time value function. Here,…

交易与市场微观结构 · 定量金融 2015-11-10 Kensuke Ishitani , Takashi Kato

We study an optimal allocation problem for a system of independent Brownian agents whose states evolve under a limited shared control. At each time, a unit of resource can be divided and allocated across components to increase their drifts,…

最优化与控制 · 数学 2026-03-31 Gaoyue Guo , Wenpin Tang , Nizar Touzi

In this paper we study the optimization problem of an economic agent who chooses a job and the time of retirement as well as consumption and portfolio of assets. The agent is constrained in the ability to borrow against future income. We…

最优化与控制 · 数学 2021-07-28 Junkee Jeon , Hyeng Keun Koo

This paper studies the dividend and capital injection problem under a diffusion risk model with general discount functions. A proportional cost is imposed when injecting capitals. For exponential discounting as time-consistent benchmark, we…

数理金融 · 定量金融 2025-05-30 Sang Hu , Zihan Zhou

In optimal stopping problems, a Markov structure guarantees Markovian optimal stopping times (first exit times). Surprisingly, there is no analogous result for Markovian stopping games once randomization is required. This paper addresses…

概率论 · 数学 2024-08-02 Sören Christensen , Boy Schultz

In this paper, we propose a new framework for solving a general dynamic optimal stopping problem without time consistency. A sophisticated solution is proposed and is well-defined for any time setting with general flows of objectives. A…

最优化与控制 · 数学 2026-02-02 Hanqing Jin , Yanzhao Yang

This paper studies the time-inconsistent MV optimal stopping problem via a game-theoretic approach to find equilibrium strategies. To overcome the mathematical intractability of direct equilibrium analysis, we propose a vanishing…

最优化与控制 · 数学 2025-10-29 Yuchao Dong , Harry Zheng

Given two probability measures on sequential data, we investigate the transport problem with time-inconsistent preferences in a discrete-time setting. Motivating examples are nonlinear objectives, state-dependent costs, and regularized…

最优化与控制 · 数学 2025-06-23 Erhan Bayraktar , Bingyan Han

This paper is concerned with an optimal control problem for a forward-backward stochastic differential equation (FBSDE, for short) with a recursive cost functional determined by a backward stochastic Volterra integral equation (BSVIE, for…

最优化与控制 · 数学 2022-09-20 Hanxiao Wang , Jiongmin Yong , Chao Zhou

We study a decision-maker's problem of finding optimal monetary incentive schemes for retention when faced with agents whose participation decisions (stochastically) depend on the incentive they receive. Our focus is on policies constrained…

计算机科学与博弈论 · 计算机科学 2024-07-31 Daniel Freund , Chamsi Hssaine

How do decisions change with the economic environment and with time? This paper studies general nonstationary stopping problems and provides the methodological tools to answer these questions. First, we identify conditions that ensure a…

理论经济学 · 经济学 2024-08-01 Théo Durandard , Matteo Camboni

In this paper, we investigate the existence and characterization of the value for a two-player zero-sum differential game with symmetric incomplete information on a continuum of initial positions and with signal revelation. Before the game…

最优化与控制 · 数学 2026-01-01 Xiaochi Wu

In this paper we analyse a dynamic model of investment under uncertainty in a duopoly, in which each firm has an option to switch from the present market to a new market. We construct a subgame perfect equilibrium in mixed strategies and…

经济学 · 定量金融 2015-06-16 Jan-Henrik Steg , Jacco Thijssen

This paper presents Hamilton-Jacobi (HJ) formulations for two classes of two-player zero-sum games: one with a maximum cost value over time, and one with a minimum cost value over time. In the zero-sum game setting, player A minimizes the…

最优化与控制 · 数学 2021-06-30 Donggun Lee , Claire J. Tomlin