Controlled Occupied Processes and Viscosity Solutions

Fuente: arXiv
Guardado en:
Detalles Bibliográficos
Autores principales: Soner, H. Mete, Tissot-Daguette, Valentin, Zhang, Jianfeng
Formato: Preprint
Publicado: 2024
Materias:
Acceso en línea:
Etiquetas: Agregar Etiqueta
Sin Etiquetas, Sea el primero en etiquetar este registro!
_version_ 1866909394755649536
author Soner, H. Mete
Tissot-Daguette, Valentin
Zhang, Jianfeng
author_facet Soner, H. Mete
Tissot-Daguette, Valentin
Zhang, Jianfeng
contents We consider the optimal control of occupied processes which record all positions of the state process. Dynamic programming yields nonlinear equations on the space of positive measures. We develop the viscosity theory for this infinite dimensional parabolic $occupied$ PDE by proving a comparison result between sub and supersolutions, and thus provide a characterization of the value function as the unique viscosity solution. Toward this proof, an extension of the celebrated Crandall-Ishii-Lions (second order) Lemma to this setting, as well as finite-dimensional approximations, is established. Examples including the occupied heat equation, and pricing PDEs of financial derivatives contingent on the occupation measure are also discussed.
format Preprint
id arxiv_https___arxiv_org_abs_2411_12080
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Controlled Occupied Processes and Viscosity Solutions
Soner, H. Mete
Tissot-Daguette, Valentin
Zhang, Jianfeng
Optimization and Control
Analysis of PDEs
49L12, 35K55, 35R15, 60J55, 93E20
We consider the optimal control of occupied processes which record all positions of the state process. Dynamic programming yields nonlinear equations on the space of positive measures. We develop the viscosity theory for this infinite dimensional parabolic $occupied$ PDE by proving a comparison result between sub and supersolutions, and thus provide a characterization of the value function as the unique viscosity solution. Toward this proof, an extension of the celebrated Crandall-Ishii-Lions (second order) Lemma to this setting, as well as finite-dimensional approximations, is established. Examples including the occupied heat equation, and pricing PDEs of financial derivatives contingent on the occupation measure are also discussed.
title Controlled Occupied Processes and Viscosity Solutions
topic Optimization and Control
Analysis of PDEs
49L12, 35K55, 35R15, 60J55, 93E20
url https://arxiv.org/abs/2411.12080