Saved in:
Bibliographic Details
Main Authors: Niu, Zhipeng, Meng, Qingxin, Li, Xun, Tang, Maoning
Format: Preprint
Published: 2024
Subjects:
Online Access:https://arxiv.org/abs/2410.01749
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1866908473615187968
author Niu, Zhipeng
Meng, Qingxin
Li, Xun
Tang, Maoning
author_facet Niu, Zhipeng
Meng, Qingxin
Li, Xun
Tang, Maoning
contents This paper explores a class of fully coupled nonlinear forward-backward stochastic difference equations (FBS$Δ$Es). Building on insights from linear quadratic optimal control problems, we introduce a more relaxed framework of domination-monotonicity conditions specifically designed for discrete systems. Utilizing these conditions, we apply the method of continuation to demonstrate the unique solvability of the fully coupled FBS$Δ$Es and derive a set of solution estimates. Moreover, our results have considerable implications for various related linear quadratic (LQ) problems, particularly where stochastic Hamiltonian systems are aligned with the FBS$Δ$Es meeting these introduced domination-monotonicity conditions. As a result, solving the associated stochastic Hamiltonian systems allows us to derive explicit expressions for the unique optimal controls.
format Preprint
id arxiv_https___arxiv_org_abs_2410_01749
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Fully Coupled Nonlinear FBS$Δ$Es: Solvability and LQ Control Insights
Niu, Zhipeng
Meng, Qingxin
Li, Xun
Tang, Maoning
Optimization and Control
This paper explores a class of fully coupled nonlinear forward-backward stochastic difference equations (FBS$Δ$Es). Building on insights from linear quadratic optimal control problems, we introduce a more relaxed framework of domination-monotonicity conditions specifically designed for discrete systems. Utilizing these conditions, we apply the method of continuation to demonstrate the unique solvability of the fully coupled FBS$Δ$Es and derive a set of solution estimates. Moreover, our results have considerable implications for various related linear quadratic (LQ) problems, particularly where stochastic Hamiltonian systems are aligned with the FBS$Δ$Es meeting these introduced domination-monotonicity conditions. As a result, solving the associated stochastic Hamiltonian systems allows us to derive explicit expressions for the unique optimal controls.
title Fully Coupled Nonlinear FBS$Δ$Es: Solvability and LQ Control Insights
topic Optimization and Control
url https://arxiv.org/abs/2410.01749