On stochastic control under Poisson observations: optimality of a barrier strategy in a general Lévy model

Fuente: arXiv
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Main Authors: Noba, Kei, Yamazaki, Kazutoshi
Format: Preprint
Published: 2022
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author Noba, Kei
Yamazaki, Kazutoshi
author_facet Noba, Kei
Yamazaki, Kazutoshi
contents We study a version of the stochastic control problem of minimizing the sum of running and controlling costs, where control opportunities are restricted to independent Poisson arrival times. Under a general setting driven by a general Lévy process, we show the optimality of a periodic barrier strategy, which moves the process upward to the barrier whenever it is observed to be below it. The convergence of the optimal solutions to those in the continuous-observation case is also shown.
format Preprint
id arxiv_https___arxiv_org_abs_2210_00501
institution arXiv
publishDate 2022
record_format arxiv
spellingShingle On stochastic control under Poisson observations: optimality of a barrier strategy in a general Lévy model
Noba, Kei
Yamazaki, Kazutoshi
Optimization and Control
Probability
We study a version of the stochastic control problem of minimizing the sum of running and controlling costs, where control opportunities are restricted to independent Poisson arrival times. Under a general setting driven by a general Lévy process, we show the optimality of a periodic barrier strategy, which moves the process upward to the barrier whenever it is observed to be below it. The convergence of the optimal solutions to those in the continuous-observation case is also shown.
title On stochastic control under Poisson observations: optimality of a barrier strategy in a general Lévy model
topic Optimization and Control
Probability
url https://arxiv.org/abs/2210.00501