Optimization under rare events: scaling laws for linear chance-constrained programs

Fuente: arXiv
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Autori principali: Blanchet, Jose, Jorritsma, Joost, Zwart, Bert
Natura: Preprint
Pubblicazione: 2024
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author Blanchet, Jose
Jorritsma, Joost
Zwart, Bert
author_facet Blanchet, Jose
Jorritsma, Joost
Zwart, Bert
contents We consider a class of chance-constrained programs in which profit needs to be maximized while enforcing that a given adverse event remains rare. Using techniques from large deviations and extreme value theory, we show how the optimal value scales as the prescribed bound on the violation probability becomes small and how convex programs emerge in the limit. We use our results to analyze the performance of existing popular approaches in the rare-event regime. We show that the popular CVaR and sample approximations have optimality properties under light-tailed assumptions on the randomness, while they behave sub-optimal in a heavy-tailed setting. Our results are derived using large deviations theory, extreme value theory, process techniques, and random set theory.
format Preprint
id arxiv_https___arxiv_org_abs_2407_11825
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Optimization under rare events: scaling laws for linear chance-constrained programs
Blanchet, Jose
Jorritsma, Joost
Zwart, Bert
Optimization and Control
Probability
90C15 (primary), 60F10, 60G70 (secondary)
We consider a class of chance-constrained programs in which profit needs to be maximized while enforcing that a given adverse event remains rare. Using techniques from large deviations and extreme value theory, we show how the optimal value scales as the prescribed bound on the violation probability becomes small and how convex programs emerge in the limit. We use our results to analyze the performance of existing popular approaches in the rare-event regime. We show that the popular CVaR and sample approximations have optimality properties under light-tailed assumptions on the randomness, while they behave sub-optimal in a heavy-tailed setting. Our results are derived using large deviations theory, extreme value theory, process techniques, and random set theory.
title Optimization under rare events: scaling laws for linear chance-constrained programs
topic Optimization and Control
Probability
90C15 (primary), 60F10, 60G70 (secondary)
url https://arxiv.org/abs/2407.11825