Localization for constrained martingale problems and optimal conditions for uniqueness of reflecting diffusions in 2-dimensional domains

Fuente: arXiv
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Main Authors: Costantini, Cristina, Kurtz, Thomas G.
Format: Preprint
Published: 2022
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_version_ 1866910545785913344
author Costantini, Cristina
Kurtz, Thomas G.
author_facet Costantini, Cristina
Kurtz, Thomas G.
contents We prove existence and uniqueness for semimartingale reflecting diffusions in 2-dimensional piecewise smooth domains with varying, oblique directions of reflection on each "side", under geometric, easily verifiable conditions. Our conditions are optimal in the sense that, in the case of a convex polygon with constant direction of reflection on each side, they reduce to the conditions of Dai and Williams (1996), which are necessary for existence of Reflecting Brownian Motion. Moreover our conditions allow for cusps. Our argument is based on a new localization result for constrained martingale problems which holds quite generally: as an additional example, we show that it holds for diffusions with jump boundary conditions.
format Preprint
id arxiv_https___arxiv_org_abs_2206_05621
institution arXiv
publishDate 2022
record_format arxiv
spellingShingle Localization for constrained martingale problems and optimal conditions for uniqueness of reflecting diffusions in 2-dimensional domains
Costantini, Cristina
Kurtz, Thomas G.
Probability
Optimization and Control
60J60, 60H10, 60J55, 60G17
We prove existence and uniqueness for semimartingale reflecting diffusions in 2-dimensional piecewise smooth domains with varying, oblique directions of reflection on each "side", under geometric, easily verifiable conditions. Our conditions are optimal in the sense that, in the case of a convex polygon with constant direction of reflection on each side, they reduce to the conditions of Dai and Williams (1996), which are necessary for existence of Reflecting Brownian Motion. Moreover our conditions allow for cusps. Our argument is based on a new localization result for constrained martingale problems which holds quite generally: as an additional example, we show that it holds for diffusions with jump boundary conditions.
title Localization for constrained martingale problems and optimal conditions for uniqueness of reflecting diffusions in 2-dimensional domains
topic Probability
Optimization and Control
60J60, 60H10, 60J55, 60G17
url https://arxiv.org/abs/2206.05621