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Parabolic bellman equations with risk control

    Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

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    Abstract

    We consider stochastic optimal control problems with an additional term representing the variance of the control functions. The latter one may serve as a risk control. We present and treat the problem in a purely analytical way via a Vlasov-McKean functional and Bellman equations with mean field dependence. We obtain global existence and, essentially, optimal global regularity for the solutions of the Bellman equation and the minimizing control. Surprisingly, the risk term simplifies the analysis to a certain extend.
    Original languageEnglish
    Pages (from-to)1535-1549
    JournalSIAM Journal on Control and Optimization
    Volume56
    Issue number2
    Online published17 Apr 2018
    DOIs
    Publication statusPublished - 2018

    Research Keywords

    • Bellman equations
    • Mean field dependence
    • Onlinear parabolic equations
    • Risk control
    • Stochastic differential games

    Publisher's Copyright Statement

    • COPYRIGHT TERMS OF DEPOSITED FINAL PUBLISHED VERSION FILE: © 2018 Society for Industrial and Applied Mathematics.

    RGC Funding Information

    • RGC-funded

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